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The diameter of replacement tires should be within ±3% of the factory specification. Running 205/60-16 tires would make your speedometer read 5.1% too slow.
The most common plus size replacement is 205/50-16.
I have 205-50-16s that I have run on the road and track however I got a slight shimmy which may have been due to the 38 offset. This was on a 2006 Mini S
I was told that a 205-55-16 tire might be a bit tall, but should work. Also, a 195-50-16 might show some wheel well due to its being smaller in diameter, but should also work.
On a 2007 MCS is it possible to go to a 205/60Rl6? Would there be any clearance problems or other issues involved? Any advice would be appreciated.
205/60-16 is a good size for winter tires and there are some good High Performance All Season tires at tirerack.com
205/60-16 fits rims 5.5-7.5" wide and stands 25.7" tall so tire diameter is about 1.4" taller than stock which may be too tall for daily use and with most suspensions and loads. With people in the rear seat, it would likely scrape against the plastic liners on the tops of the wheel wells and maybe in the front against the arches when turning. Speedo and odometer would be off.
Usually it is safer to try to be closer to the stock tire diameter of about 24.3".
So when shopping if you see tire diameters of about 24.6 to 25" that's about the limit under normal use.
205/55-16 will give you quite a good selection of tires that are very similar to those you can find in 205/60-16 and will have a tire diameter of 24.9" which is taller than stock but it will work.
If you want the most accurate speedometer readings then the closer you can get to stock tire height the better and 205/50-16 will be pretty good.
Tire diameter is 24.1".
Why do you ask about 205/60-16? It is not a tire size that is suggested nor mentioned much at NAM. Was there a winter tire that you were interested in?