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I agree that your car is probably still in pretty good shape. We have driven two Bricks over 230k miles. Our '88 740 GLE was a real trooper, and a dealer mechanic once told me that we had what was essentially a 240 motor.
One thing that you should do is crawl (CRAWL!!!) under your car and hit the cat with your fist or some other soft implemsnt and see if it rattles. If it is the heat shield, which is common, it will sound tinny. If it is the cat, you will hear the stuff rattle inside it. The inner part of the cat is kinda like a ceramic sponge. First it will crack, then it will break up, sometimes passing chunks down line to the muffler. I got an aftermarket one for $270.
It pains me to hear of people who have a problem and they do not try the dealer. Sure, they can give you a big estimate if you ask them to get your brick in top shape. If they do, get it in writing and post it. Often you can take care of safety items first and make a plan for the rest.
Even $4000 is just 10 payments for many people, and that does not account for taxes and insurance.
The idea of posting another post to find a good service tech is a good one. I have located several good places for our globe-trotting daughter.
Good luck
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'96 855R,'64 PV544, '67 P1800, '95 855, '95 854, the first three are mine, heh, heh, 415,000 miles put on 9 bricks
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