I have a 94 320 and the rear of the car seems low to me, different than it was new. I replaced the shocks and this did improve ride, it's still low. Can I put some rubber spring spacers to raise car? Will this work?

 

yes.

it's up to 4 notches. check how many is installed on your spring.

 

You might want to check/replace your springs. Stprings sometimes get weekend with time. I had the same problem on 94 500SEL. One side was sitting a little higher then the other one. I have replaced one spring and the car has perfect hight now.

Regards