secret tramp

My A3 (2005 model) has all the symptoms of either a blown head gasket or a damaged head (sludge in oil/losing water/lots of steam from exhaust).

I have called a few local garages to try and get an idea of likely costs - most of whom are a bit too vague. One garage ruled themselves out and recommended me to an `engine specialist`.

This specialist says that this engine is noted for head failure and that it is 99% likely that the head will need replacing.

A new head supplied by him would be an additional £695 + VAT.

I could obtain either a reconditioned or one from a salvage yard for about £250 with a 6 month warranty but he is unwilling to fit anything other than what he would obtain.

His reasoning is that he could only `cold test` the part - in the same way he would test the head from my own car.

I am slightly dubious that a) he has said that it is almost certain that I need a new head without even testing it - it might need skimming for example which would be an extra, say, £100 and b) his reluctance to entertain a reconditioned part. It leads me to suspect that a £900 + VAT job will almost definitely become an almost £2000 job the moment I hand the car over.

Is his reasoning sound or am I right in being a bit dubious about that garage?

Many thanks for any advice/wisdom provided.