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Thats a bit more than just replacing a head gasket.
If they do a complete rebuild on the head to specs (valve guides, new seats etc ) just the machine shop bill could run $1200-1800US for the head work before gaskets and labour, and if putting in a new cam at another $600...
Definately get a price breakdown on the estimate and see where he's going with it .before letting him loose on it.
Factory timing tools are available from www.baumtools.com for BMW Volvo etc(they usually don't show the diesel tools on the website, but call and they have them) the drawback there is if the BMW tools cost what the volvo diesel tools do you may not be too much ahead on the first job doing it yourself.
The tools needed to properly time the volvo diesel add up to around $500+.But next time you do a timing belt, you'll be ahead.
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-------Robert, '90 240 wagon, '84 240 diesel , '80 245 diesel
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