I do have one question? Everywhere I had looked this price ($4,100) isn't crazy for this engine, even from smaller shops. Keep in mind this involves machining. So is my $2,500 really that bad of a deal?
Yes - $4,000 is crazy and $2,500 is average, at best, for a headgasket repair. But - it's good the dealer wants to resurface the heads, that's a plus.
One of the best independent Subaru shops in the country, who isn't cheap, but is really good does the heads, resurface, timing gear, AND NEW PISTON RINGS for less than $3,000:
Superior Soobie And Import | Portland, Oregon | Subaru repair and upgrade specialists
it won't use a drop of oil between oil changes when they're done with it, that dealer job probably will.
The dealer is quoting you $1,000 more for a lesser job. Or you'll be paying $2,500...almost what it would cost you in portland for a better shop to do it. Drive to portland?
You are not "getting a deal". it might be okay and a good choice, but it's not a deal i would be feigning over.
But first we have to make sure we're talking about the right thing here:
What all does the quote include? Machining is $150, that's not enough to account for a $4,000 bill.
What you want on that vehicle is:
Resurfaced heads, quality gaskets (Subaru or Fel Pro).
New complete timing kit - belt, tensioner, pulleys.
New valve cover gaskets, spark plugs, PCV valve.
Reseal the oil pump and replace the cam seals.
If you're getting all of that for $2,500 that's a good deal. But if you're not getting all of that, it becomes worse of a deal quickly.
Also - where are you "looking up" prices? Post links and your sources.
This is a few years old, but are numbers of what peopel on this forum have actually paid for that same engine: