The results of the PPI, done by Schatz & Krum, Sacramento, CA, are that the car needs a clutch, air-oil separator and oil filler pipes, intake resonator with connecting boots. S&K could not promise that the clutch would fix the 2nd gear problem. That could mean a synchro ring or some other internal trans part is damaged. (BTW, the IMS bearing is original.)
I gave the PPI report to the dealer and made an offer that basically deducted the estimated repair costs, $2580, from the asking price. The manager said he would call me back after talking with the store's owner. That was 3 hours ago and I haven't heard anything from them.
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