Two of the exhaust valves were found to be slightly wet with oil when the turbo was being replaced by my mechanic, but nothing drastic.
Yep, the head needs a rebuild. Exhaust guides always the first to go on VAG engines.
Fitting a refreshed head is a quick way to restore compression and reduce oil consumption.....providing the cylinders/pistons aren't screwed.
Don't waste time or money with spark plugs, that isn't your issue. It's just a tired engine, but hopefully just the top half. A new engine will be 3-4000 from TPS. I would sell the car now if I were you. The money pit only gets deeper. There's always something with these engines......just when you get it running how you want, the bloody injectors go down and that's another £800 + labour. It never ends.
I've already gone through this dilemma of selling vs. keeping it and running it until it dies (and then fixing it again).
The car is worth ~€4000-€4500 at 121k miles in the current Irish car market, second lowest mileage petrol MK2 VRS I've ever seen for sale. A replacement engine with similar mileage can be bought anywhere between €1000-2500, most likely imported from the UK. I'd plan on renting an engine crane and doing the work outside my house, I estimate another €500 for the crane, extra tools, fluids and stretch bolts. I can borrow my dad's mighty Volvo V50 to transport the replacement engine if I can't get it shipped
So that's €1500-3000 to get a decent used engine, also gives me the opportunity for an easy k04 conversion and to put on a stronger clutch.
Or I can sell it now for €4000. There are no other petrol MK2 VRSs for sale in Ireland currently, so I would have to replace it with something else of similar age & mileage.
These are my options (not to mention insurance difference which at my age for these cars would be a lot higher):
MK5 GTI - €7000
Leon Cupra - €8000
Civic Type R FN2 - €8000
Astra OPC/VXR - €7000
Megane RS225 - €7500
Focus ST - €7500 (and has annual road tax of €1250)
(I would love to get an S3 or TTS as my next car, but they are both €12000+).
As you can see the difference in value between my car and these other comparable cars is roughly the same if not more than the price of a replacement engine. Combine that with the fact that I am paying a very reasonable insurance price as Irish insurance companies class my Octavia as a family car, making it even cheaper to insure than my dad's bog standard 1.8 petrol V50.
Hopefully this is good enough justification for my financial suicide, as a petrol head I don't see any other option than to stick to what I've got. As I said before, I'll only get the remap when I've got enough money to comfortably throw in another used engine.
If anything expensive goes (e.g. the injectors, clutch or whatnot) it'll be enough justification for me to replace the engine. But until that happens I'm running this one 'till it dies.
I will be going back the Dyno in a few weeks on just 95 octane, and I think I'll get those spark plugs, if I'm able to get similar power without 100ml of the
Millers VSPe PowerPlus Multishot I had in last time I'll be happy. Although I am crossing my fingers that either the octane booster didn't work or having slightly incorrect spark plugs caused the disappointing result.
Also here's a video I posted before of the valves, it's not that bad right?