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It's probably worth replacing. Those are good cars, and the engines are usually good. That's surprising that it did something like that so early. Usually, they go 250,000 miles or so. I know that the SeriesII engines had a composite intake manifold that would crack and leak coolant in to the oil. That's obviously a bad thing. I can't remember if yours is SeriesII or not, though.
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Generally speaking, if you were to get what you really deserve, you might be unpleasantly surprised.
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