Zero tolerance means the valves may have hit the piston when the timing belt broke. I would suggest doing a cylinder leakage test to see if the valves are bent or not. If the valves are not bent then you can replace the belt and everything will be ok. If there are bent valves then the cylinder heads will need to be removed and repaired.
According to the Gates timing belt catalog, this is not a zero clearance engine. If the belt did brake, the valves should not be damaged. Even if they were, it sounds like this shop is not competent enough to replace them and they would rather put in a used engine...probably in worse shape than yours. They may not even be competent enough to do the timing belt. It may be a another problem as well because 55,000 is too soon for the belt to break. I would take the RAV to a better shop, have the belt replaced if that really is the problem, and see how it runs.
I had the timing belt break on the one I used to have a number of years ago and all I did was replace the belt and all was good.
The 3s-fe 2.0 engine is not an interference engine, so there should not be any valve damage.
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same problem 02 rav diesel broke belt while driving ....why....at only 25k miles...these belts are recommend to be changed at 60k miles somebody has to be responsible , need to know the reason ?...help!
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