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Tires will make the biggest difference, and no they're not more expensive than a rear sway bar + labour to install.
You can pick up a set of used decent tires with rims for around $500 right here on Revscene classifieds.
The swaybar will not improve your cornering speed very much if you're still rolling on hard as rock 15" all season tires. It will change the balance of your car, but the cornering speed will not differ by much with no grip from the tires.
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