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2004 996 Engine Problem - Tapping Noise

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My 2004 996 has 80,000 km and has developed a loud tapping noise when running. After a trip to the dealer for diagnosis, it appears there is cylinder scoring in cylinder 4 and the suggestion is a rebuilt engine. The car runs well, no visible blue smoke, although it was mysteriously low on coolant last month. I will take it for a second opinion, but it appears that an engine swap is going to be an expensive proposition in Canada at a quoted $28k. Any other alternatives?

Edited by PeterC4
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I was at the dealer this morning after my wife took the car in yesterday and spent time with the tech who was quite knowledgeable. The cylinder wall is scored inside the fourth cylinder and the piston is now making a tapping noise as it moves up and down. It will only get worse with time and then may sieze. Since the cylinder is part of the engine core there is nothing you can do to "rebuild" or refurbish the problem unless you re-bore the cylinders. Porsche will sell you a refurbished engine, but I understand it is basically a new engine that was manufactured from a recycled core and all the parts are new. It comes with a 2 year warranty. The problem has occured before in the 996 engines, but this late model version engine does not have "sleves" in the cylinders like the early ones which caused even more problems. The dealer is asking Porsche for some warrantly assistance and they are going to see what they can do to alleviate some of the costs. The new engine comes with all new parts and the tech said that when it comes in the crate it is like brand new. So it is fundamentally different from salvaging something from another car.

Edited by PeterC4
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Ah yes... the dealer offered reman option # 5 in Mike's write up (you really should read through all 10 options to be well informed).

If you are paying the expense, personally I would opt for number 7 or 10 without any hesitation.

A friend of mine did option 7, and his car now puts out 300RWHP @ 7K RPM.

Edited by logray
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