Transmission problem on 96 Impreza outback

[subaruvacc]

Hello

New to the boards
I own a 96 Impreza Outback.

It had 133,000 miles on it

Just brought it to Subaru to have the Timing Belt changed.

While replacing that they tell me that a sensor chip in my transmission is going bad (wrote "MPT GOING BAD" on my bill). They noticed that the car shakes a tiny bit when I make a turn which I noticed but it aint no big deal to me .

Told it will be about $1,600 to replace chip and whatever else.
I told them this is a around the town car i use to go to the train and maybe to the store on weekends . Our main car is a 2002 Subaru Forestor.

He told me think about changing it as it will "BURN UP EVERYTHING EVENTUALLY" - what ever that means?

Car cost me $2,800 2 months ago and I put $300 for the timing belt and $300 for alternator (which was broke when I bought it)

Can I get by without this , I just want to get 2-3 years out of a car I drive 35 miles a week

Anyone with any experiance with this i woudl appreciate the help and Im glad to be a member here .

Thank you.

Kevin