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$3,500 for the timing chain on an M119? If that's a real quote, they're taking you for some kinda ride. For that price you could have the timing chain done and both heads freshened as well.
While the dealer does the tranny, have them check the chain for stretch.
What's the service history like? Frequent oil/filter changes really extend the life of the chain. Have them inspect the top guides and think about having them replaced before doing needless work like a top-end overhaul.
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