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I too have a 1988, mine has 285,000 miles. I started losing coolant and saw a wet spot on top of the radiator. I replaced the radiator but the engine continued loosing water. Mine had a bad head gasket and was blowing coolant out the exhaust. I never saw it smoke or drip water out the exhaust, it just turned to steam. I had the head gasket replaced and everthing is cool (so to speak) If the pressure test shows a bad head gasket throw a new one at it. If not go for the used $1500 motor, it sure beats the crap out of car payments and if you buy another used one you don't know how bad it may be. I'm keeping mine till the wheels fall off.
JJ
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1988 Camry LE
4 cyl Auto
335,731
1994 Volvo 940 Turbo
1992 Dodge Cummins Turbo Diesel
2006 Mustang GT
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