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Q: Timing Belt Issue on 1994 Mitsubishi Diamante

Is there anyway to know when you need a new belt?
Does my car have a belt or chain?
My mechanic tells me I should also change the water pump if I decide to have timing belt replaced? You agree?
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Timing belts are regularly scheduled maintenance--they should be changed at a mileage interval specified by the manufacturer and clearly communicated in your owner's manual. You can check RepairPal's estimator for guidance, too:

It almost always makes sense to do the water pump and timing belt together, because the water pump is 150 or so dollars, but it requires all of the same labor as the timing belt. Really cheap insurance against having to do a big expensive job more than once.
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