$800 for a timing belt and "power steering leak"? Wow, unless they replaced the power steering pump with a brand new one, you got hosed. Timing belt is $38 from the dealer, tensioner is $136, and tensioner spring is $6. And I can bet they just replaced the belt. Thats $180 in parts and with my discount I paid $120.
$3500 for an 87 non-turbo with 120K miles? I paid $2500 for an 87 turbo with 120K miles and an ultra straight clean body. You do the math.
You should be saving up for a new head gasket first, then worry about the exhaust.
Just my opinion.
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