You're right. The OEM 16" wheels will have a problem.

 

You can get away using the factory 16" wheels but it would require a minimum of a 1.5" wheel spacer to get the correct backspacing in order to clear the UCA and steering knuckle. Here is Chris/06H3 rig with a Rancho lift and 1.5" hub centric to wheel centric spacers.


There is also a Rancho lifted H3 from CZ with 2" wheel spacers and stock wheels. Pretty sure he is a registered user on this forum (Allroadshop?).

 

I'm pretty sure he is buying 1.75" spacers. The 1.5" spacers he has now puts the tires sidewall way to close (less than 1/8") to the Bolt head on the upper A-arm. So to be safe, go with a 1.75" spacer to keep the OEM wheels with a Rancho lift!

 

I agree but it depends on the tire size. If you plan on going with a 12.5" wide tire, I would play it safe and go with a 1.75". He does plan on swapping them out with 1.75" spacers but his old spacers will work perfect with my pizza cutters (10.5's) .