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If it is just a burnt valve, the lower block, crank, and pistons do not need to be replaced. The head could be rebuilt for ~$350-$400. Plus labor to remove and reinstall. I don't know the dealer's motiviation to try and sell you a new engine, but I would be asking a lot of questions. Why does 1 burnt valve necessitate the replacement of the entire engine? Did they do a compression check or leak down test? What were the results of the compression check? So what if a lot of gas got dumped down into #1 cylinder. Usually a burnt valve is caused by a lean condition. Too much air, so if anything your condition would have been a rich scenario. Something does not add up, and sounds like he's trying to get into your wallet.
 

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Yeah the dealer wants $8300 for a new motor. Cylinders 3&4 are the issue according to the tech notes. They did a compression test on those 2 cylinders and there was 0 psi.
Ask the dealer what is the cause of the 0 compression. If it is just burnt valves, get the head rebuilt. Do you have any powertrain warranty left? Call Chevy customer service ASAP. And get your car towed to another dealer.
 
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