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My car smokes a little about 20% of the time on cold starts. The price of the AOS is only about $150 so they're gouging you on the price they quoted. I bet it doesn't take an experienced mechanic more than 2 hours.
You can give the car an unofficial AOS test by attempting to remove the oil fill cap with the motor running. A bad AOS puts an extreme vacuum on the crankcase and therefore the oil fill cap is hard to lift off.
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