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Until the engine is sealed you will not know how much oil is burned. Price the parts. Difference too in whether its a 4x4 or easy access 2 wheel drive.
Check rear seal type to see if it can be changed by pulling trans and flywheel. If stick shift, probably good idea to replace clutch disc to verify not oil soaked. If automatic, oil is no consequence.
Kind of matters how much is wrong. With trans out, some rear engine seals can be replaced without removing oil pan. But if bearings are bad, on 2 wheel drive you may be able to squeeze off oil pan and check bottom of bearings.
You can do poor man's bearing job with plastic-gage. Rod bearings can probable be switched 100%. Main bearings lower cap can be serviced with upper 1/2 left in place. Not ideal, but can save from pulling motor.
Value depends on whether your Labor is free. You have a 14 Year ol truck. Depends on what you already replaced to maintain it or what else it will need. You could need rings after working on the bottom end even with a poor man's bearing job. Plastic Gage can tell you the size you need for each bearing. Then keep track and only buy individual sizes.
If you could find a wrecked truck with a good engine, places like carparts.com have a good multilist. Rule of thumb is different for each person. I would look hard at spending 1/2 of what truck is worth to fix it, knowing other things are wrong.
If the truck is in good condition overall (only you can answer this) then yes it is worth it, but don't overhaul your engine buy one that has been factory reconditioned, don't get it from cheapest price sources, look around for the best quality rebuilds.
I would buy the converter,only if you really need one,and install yourself.
It should be about half the price you quoted or less. Buy at auto parts store.
You can not not buy another car for the price of a new converter!!
Unless its CHEAP, I would keep looking. These were cheap cars, and most people that bought them were cheap, and did not service them regularly. If you really want it, pay a mechanic to look it over BEFORE you purchase it. If its really good, the seller wont have a problem with that, If they do, then pass.
I would buy your car, Those prices are from the Lexus Dealership that are pretty much charging you the LEXUS name. 1 Option would be is to go to a "Toyota" dealership & I bet the repairs would be at least 25% off of that was quoted to you. Those repairs aren't that tough for a mechanic. I bet if get a couple qoutes from different mechanics, you can have those engine repairs done for $500 MAX, & that is on the high end. As for Tires, I just went to Walmart & bought a brand new set for $290, these 80,000 mile GOODYEAR VIVA 2, along w/ lifetime balance & warranty for all 4 tires. I have 198k on my 99ES300 & drives like I just drove it off the lot.
i believe what you have going on with the car is your Valve seals have gotten brittle and have cracked. now the reason it smokes on startup is because when you shut it off. the oil is bypassing the valve seals and is collectiing in your combustion area. this is very normal with older cars. or cars with high milage. and as far as the price factor goes it is hard for me to tell you if it is worth fixing or not. because you will be looking at taking the heads off and puting in new head gaskets. but i have a 1976 dodge pickup and i replaced my seals because that was the only problem with it. now all i can tell you is take the car into a shop and get a compression test done to the motor this will give you an idea if the motor is worth it or not. if the compression is up to par i would replace the seals if this was my car.