Apparently the symptoms indicate a spun rod bearing probably from a sludged up oil pump, without a tear down to confirm. I agree $4k for an engine is too much. The dealer says it's rebuilt by LKQ and comes with their 3 year, 100k miles parts and labor warranty, and is now $3,700 with $1,950 remove and replace labor. If she needs service later on, do mechanics usually honor their warranty, or demand payment from the customer and give a receipt to file a reimbursement claim with LKQ? The free replacement engine deal, from a class action lawsuit, has expired. I wonder if begging to Toyota corporate for half of the replacement bill would be a waste of time.