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Old 01-01-2016, 12:47 PM
Charlie Foxtrot Charlie Foxtrot is offline
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Join Date: Jan 2015
Location: northern IL
Posts: 267
Is there coolant in the crankcase? If yes - you are going to need to check the bearings. If no- do a leak down test on the cooling system (pump it up to 10-15psi) and see if coolant leaks into the crankcase - if yes see above regarding bearings. (Coolant attacts crank/rod bearing material)
Pull your glow plugs, examine, then do a cylinder leak down test. Listen for rushing air at adjacent cylinders, oil sump. exaust & intake. No leakage=good (not a likely result).

I wouldn't freak out about the engine. The rest of the car seems to indicate a fair deal if you can do the repairs cheap. If you can do the labor, and you buy the parts at the best price you should come out of it OK. Make sure you compare the price of a good used engine swap with the proposed repairs. You might find a good, swappable engine for lless than the repairs.
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