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I wouldn't say you are being ripped off. It sounds like what most auto repair shops would do. You will always pay marked up part prices through a repair shop. You can always get the part cheaper yourself. I wouldn't say they are over charging you labor cost either.

Of course, if you are sure it is the sensor, and you think it is easy to get to, you could always replace it yourself as well for just the cost of the sensor.

Did they actually hook the car up to look at codes / data? or did they just go by the code you gave them ?
 
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