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Very often the steering lock assembly has jammed and you have to get a new steering lock as well as the lock cylinder and ignition switch, I'm sure this is what the dealer is quoting you for, as you usually can't really determine the actual part at fault, one or both parts gets ruined in the process. Instead of all that drilling I found it easier to just remove the upper jacket of the steering column and disassembe it all on a bench.
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