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So I have a servo that for some reason when in the car wont center. when I pulled it out afterwards, it centers again. any ideas whats going on?

its a LHS ls-500 bb mg servo

im already replacing it with a savox servo but it still seems like its worth keeping.

How does the steering work with no servo in place? is it smooth? Try working the suspension while you steer with your fingers, sometimes the steering binds at different points in the travel.

could it be a stripped gear inside the servo, wont centre under load because of the torque/pressure on it causing it to slip

yep, could be binding in the suspension. also, load the servo with your fingers while you exercise it on the bench, and see if adding some load to it prevents the centering. usually bad centering is the travel potentiometer. you could disassemble and look for broken gears or a loose potentiometer.