Engine Clicking And Tapping Noises Problems of Toyota Matrix

My son was driving our 2003 Toyota matix, accelerating up to speed after pulling onto the interstate on-ramp when the engine began to make a loud clicking sound. There was no engine warning light or smoking from the engine or exhaust system. He reduced speed, pulled over and exited at the next exit. Although the car had lost significant power, he was able to continue to drive to the dealership, located nearby. The oil pressure switch had failed and the oil had leaked out. There was no level on the dipstick. After replacing the switch, adding oil, the engine still has a loud knocking sound, is low on power and will not idle. It is not burning oil. Diagnosis is internal engine damage and that engine must be replaced. The car has 129,000 miles on it, has been regularly maintained at the dealership and was one month and 1500 miles short of its next oil change. Dealer verbal estimate is $5000 for replacement engine, from a breaker's yard. Independent estimate is $3000 - 4000. Basically, the car is an economic write-off.

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Took car to dealership in July, 2006, because the a/c was blowing hot, a check engine light had come on, and it wasn't always starting, and/or sputtering while driving. They replaced the fuel pump, a new a/c control switch, and a sensor in the engine because the check engine light would not go off and they could find nothing else wrong. Repairs occurred over a two week period with me having to return the car to the same dealership for service for the same three complaints a total of three times- a/c blowing hot, check engine light on, and sputtering when driving/hesitation when starting. I also have a fourth complaint of a popping noise in the engine which to date has never been resolved. I also had a 30k mile service done at this time. Problems began to reoccur the first week of October 2006, and I made another appointment with a different dealership. Took the car in, they had the car for three days and could not duplicate any of the problems I was complaining about. I was dissatisfied by the lack of service both on the car and customer related. Picked the car up with no diagnosis or repairs having been made. Within four days, the car began acting up again and shut down completely on the florida turnpike resulting in a tow 35 miles back to my house and then another 15 or so miles to the dealership. Determined the problem to be "engine sludge" and as it stands right now I am being told that the entire engine needs to be replaced at my expense. My problem has not reached a final resolution/decision with Toyota but I am disgusted beyond belief about the entire experience.

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