Need opinions on MAJOR work needed

Hello: Haven't posted in a while, but I do need your help:
My wife's 92 SVX LSL needs two things:
Steering rack
Tranny.

The car was in an accident two years ago, and they replaced the steering rack with a rebuilt one. Of course, the rebuilt rack only had a 1 year warranty on it.

Here's the breakdown of what the dealer is going to do:
Steering rack: (new from Subaru)
Parts: $779.18
Labor: $409
Total: $1188.18

Tranny: rebuilt unit from Subaru
Parts: $2295.00
Labor: $500.00
Total: $2839.00

The dealer says he can save me some $$ by doing them both at the same time.

So, my questions:
1. Should I go to Subaru of America and see if they can help, since the rack they put in my car is only two years old?

2. Is the dealer over-charging me? Should I go elsewhere? Is it worth reparing this car?

We've both loved the SVX, but paying almost $5k in repairs for this is pretty steep...

Your opinions are greatly appreciated.

Thanks,
-Z.

PS: The car's got only 75k miles on it.

[Beav]

The steering gear price is right but the labor isn't - to replace it pays 3.1 hours which comes to roughly $132/hr. Even if they were going to rebuild it themselves it only pays 4.6 total. I wonder what's wrong with it and why can't they rebuild it themselves, not as much money in it for them, maybe? They're supposed to be factory trained to rebuild them... (typically a rebuild kit for a rack on the average car runs around $80-$100, even if double that the savings are great. $200 + (4.6 x 132) = $807)

If they're replacing the entire trans, it pays 4.2 hours. However, if they're only replacing the trans and not the differential section also, it pays 6.0 hours. From what I've read here there's a lot of people that have paid way more for a tranny replacement.

Beav,
Thanks for the reply: I'll inquire about the steering gear rebuilt kit, and why they aren't going to use that...

-Z.

[svxpert]

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