Dealer says timing cover is leaking oil, what should I do?

[RMcG]

Hello everybody,

You may ask, why did I go to a dealer? Answer: I'm starting a new job that requires travel and definite reliability in terms of my showing up. So I wanted to have my 2008 Yaris with 111, 670 miles on it to get a clean bill of health in case I had a problem with the car. I can show my employer that I had the car inspected, and by a dealer too. I've never had the car worked on by a dealer unless it was for a recall notice or still under warranty. I gave the dealer a list of what I wanted inspected, because I had already done a lot myself and had a lot done for free.

Anyway the one thing they turned up that I'm concerned about is: "Oil leak (visual): timing cover is leaking on rear of engine." They said it will be $126 for a diagnostics check on this. After getting back from the dealer, I checked the engine oil level and it is over full (perhaps typical of Walmart?). The oil was last changed at 110K, about 1700 miles & 3 months ago at Walmart. I live in an apartment complex, but have parked in the same spot for a few weeks and have not noticed any oil spots in the parking space. But, it's night time now, so I'll check again tomorrow.

I don't trust the dealer. My guess is that this diagnostic charge is way too high. I think it's $126 for just sticking a small computer into a plug and reading a code. As just some of the evidence that they over charge: a suggestion that I remedy the foggy headlight lenses for a mere $400 and the intimation that I may get a ticket if I don't. Of course I've seen Youtube videos of people curing this problem of foggy headlight lenses with less than 30 minutes of work with toothpaste or rubbing compound and a rag.

QUESTION(S): Should I worry about the possible timing cover leak of oil?

How should I monitor this problem?

Would getting a computer diagnostic check be wise?

What is a reasonable charge for such a computer diagnostic check?

Thanks,

R.