A torque converter is $75-90 for a Ford Taurus. Labor to remove tranny, reinstall, at $50 per hour should be less than $500. If he was quoted more than that, run away from that mechanic.
Tauri I have owned:
1989 GL 3.8
1989 SHO 3.0 (Yamaha built the motor)
1990 L 3.0 (vulcan- or pushrod engine)
1992 GL 3.8
1994 GL 3.8
2007 LX 3.0 (vulcan)
I never owned a Taurus with the 24 valve overhead cam 3.0L.
My brother-in-law had a 2001 3.0L vulcan. They bought it used with 31,000 miles. When it died(from a very severe collision) it had 129,000. I think the only things I did were a DPFE sensor, sway bar end link, and brakes and tires.
The best Tauri are the ones with the 3.0L vulcan motor. It is bullet proof. The 3.8L v6 had a factory recall in the mid 1990's because the mexican factory was not tightening down the head bolts correctly, and they were blowing headgaskets. Aside from that, they were prone to chew out the water pump. The early taurus had a weak transmission, except for the very first taurus built, because customers said the transmission shifted too hard for their taste, so ford started softening the shift points, making teh trannys go bad quicker. They lasted around 120-150,000 miles or less.
The best Taurus I owned was a hand-me-down 1990 L 3.0L model. When it went to the scrap yard, it had 414,000 miles on it, with 2 transmissions, both of them being junkyard pulls. original engine, never touched except for oil changes and 1 water pump.
The worst taurus I owned was a 1992 GL 3.8L. When I owned that car I was 20 years old, and I beat on it unmercifully. I was a Ford Technician at teh time, working at a ford dealer, and working a secodn job at McDonald's. I used to drive that car everywhere at 120 mph, and smolder the tires standing on the brakes to stop. I never wrecked it. bumped a deer once though. It was a mechanical nightmare. That was because I thumped that car like I was the Los Angeles Police and it was Rodney King.
Which engine is in yours? Where did you buy it? Do you have state safety inspections on vehicles?
Sorry to hear your problems, but if you have any technical taurus questions, let me know. I can rebuild those things from teh ground up in my sleep.
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