The pump should only be about $200. I agree it is a serious job and there is a special tool that can aid the process, but is not absolutely necessary. I don't own one of the tools and I have changed one before.

I believe that he's soaking you. Call the dealer and see what they get. They might indeed get $1,000, but that is to be expected from a dealer, not from an independent.

My $0.02,
Larry