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Not unusual for a dealer to quote such prices, and they will often say the whole system should be replaced when a part of it is failing, especially due to corrosion. I've also seen whole exhaust systems get burned out from the inside when there has been a consistently leaking valve, but you would expect the monitoring system to have turned on the warning light long before that happened.

I'd wait to see where they are at with the warning light, and have the exhaust repaired/replaced as needed at an independent shop you trust.

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