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Using dealers for diagnostics is great, until the warranty expires. After that, few should all look for a good independent.
Yes, there is a specific code that indicates the CAT is defective. But it is rare to be the only code.
Tasca Volvo in RI has the 'pair' for $1500. And $1,000 for labor is a bit much for a 2 hour job. Of course, there would also be 4 O2 sensors and 3 gaskets...
I would find a good Indie and ask him to check the O2 sensors before spending $2,000. The sensors can be monitored on a good scanner.
You are correct about contaminating the CAT with oil, but that should burn off after a few miles. Remember, the CAT gets extremely hot.
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Keeping it running is better than buying new
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