BHG rebuild plan

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Get the timing belt and timing belt tensioner replaced while it's apart. No point in spending a few hundred dollars to have it opened up again in a year or two. They should also carefully inspect the timing belt crankshaft pulley; If the retainers have ANY play it should be replaced. The original pulley's retainers were just staked in place and they have a tenancy to come free over time; The revised version has them spot welded on. If the retainer has play but doesn't move much it should be safe to spot weld it in place, just don't add any material.

Valve stem oil seals!

Labor costs vary wildly from one market to the next. What was charged at places I've worked varied a good deal with shops just on the other side of town. It sounds 'fair' to me if he's replacing the timing belt and tensioner, Valve stem seals shouldn't cost more than $100 with the head already out, but as I said, it depends on the market. If I were to pay someone else to do it, I expect it would run $75 to $100 +the seals. The seals aren't very expensive if you don't buy Toyota's and you may find them cheaper if you look for valve stem seals for the 3S, 5S, 2VZ or 4A series engines; They all share the same part number but a lot of dealers charge more or less depending on the model . An acquaintance just paid about $70 for installation when getting his 7M's head shaved a couple months ago, I gave him a set of seals I had lying around... Sorry, I don't have any more.

I could think of a dozen things to add to the list, a hundred if they're going to pull the engine; It's easy to turn these projects into a full rebuild.