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Q: Water pump replacement necessary? on 2004 Toyota Avalon

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Took my Avalon in for the steering recall problem to be fixed which was done and they said the water pump was leaking and it should be repaired right away at a cost of about $1200. I called two other dealers and the replacement cost was $550 at one and about $650 at the other. So the question is does the water pump need replacing at all and how does one confirm or find out if the pump does need replacing. They said the the pump was leaking on the belt.
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Pressurizing the cooling system with a tool that looks like a bicycle pump with a pressure gauge attached to it will show up a leaking water pump. I doubt if a dealer would lie and say the pump leaks if it was not leaking. Price sounds high, they are quoting a timing belt seals tensioners and timing belt idler replacement. Still price a little high.
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