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Q: O2 sensor on 2001 Ford Escort

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A few months ago, my check engine light came on. I took it to the repair shop and they said the O2 sensor needed to be replaced. They replaced it and charged me $600. Later in the day, they called me and said when they installed the O2 sensor, it shorted out the computer and said it would cost another $400 to replace the computer. Does this sound right, or have I been ripped off? I decided to not have a new computer installed and just get rid of the car, but I still had to pay for the $600 O2 sensor. I gave the car to my neice, whose mechanic said there was nothing wrong with the computer and it passed inspection in Virginia. What is your opinion on this? Thanks for your help.
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For the diagnosis and replacement of the O2 sensor, I can see at most $300-$350, but there could be other factors that drive up the cost, like rust and corrosion and diagnosis complexities, but this sure seems very high. Does the repair order mention anything besides diagnosis and replacement of the O2 sensor? Do you know the codes stored at the time?
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