Buy a kit at the local auto parts store to check for a blown head gasket (BHG). You'll take a sample of the coolant and the kit will tell you if you have a BHG. Pretty common problem with the MKIII 7M-GTE's. $300 is a pretty good deal, even with the known problems. But be aware, if you do have to replace the head gasket, you'll likely spend double to triple what you spent on the car to just get it running well. Might even be a better option to purchase a used engine and install it. Fixing a 7M the right way involves decking the block and head. Otherwise you may have another BHG very soon. Not something you want as these cars are a pain to work on. Lots of hard to reach areas and pain the rear type of diagnostics for the electrical.
VT247
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