My Subie and I

Hello to all, I'm Daniel and have been lurking around here for a couple of months. I decided to join because I need some advice. I own a 2001 Outback base that needs some work. I'm not a mechanic or a do it yourself guy when it involves this expertise' so you may have to dumb down advice for me. Please forgive my long initial post. I have also posted this on subaruoutback.org. for additional feedback. I purchased a 2001 Outback that had belonged to an older couple in April for $3400. The car had a 122,000 miles, drove well, body and interior wise in excellent shape for a 15 year old car. I took the car to the shop that always serviced my old Oldsmobile. I dropped it off at the shop, my mechanic looked it over, told me it was a great car, the only maintenance I might want to do is change the timing belt mile wise. I purchased, drove around for 2 weeks putting 1200 miles on with no problem before my mechanic could fit me in for the work. A complete Dayco water pump kit with timing belt installed. I then began to have problems. Car began to over heat after work performed. A fail-safe thermostat installed, removed-different brand thermostat installed. Car doesn't over heat now but the temperature fluctuates. The temperature fluctuates off and on, some days it does and some days not. I went back to ask about the fluctuation and told not to worry about it all cars do that. The car was fine as long as it didn't over heat. I notice that coolant would run low in the reservoir so I would add small amounts to the reservoir once or twice a week and that helped. I thought perhaps a hose on the water pump not tightened properly, but I didn't see any coolant on the ground. Check engine began to come on intermittently. My mechanic did a test said it was just an O2 sensor going out and not to worry about it no rush to change sensor. I ran into a man who had a 2000 Outback and talked to him about my dilemma. He explained to my about head gasket deterioration and suggested I have an internal head gasket compression test done. I took the car in and had the compression test performed and told I had no internal head gasket problems, again insured that a fluctuation in temperature is normal. I didn't buy that when my mechanic told me, nor was I from this man. I have not had a car where the temperature gauge is erratic like this. Last week I began to a notice small amount of coolant on the ground every so often. I didn't want to take the car back to my mechanic. I wanted a "Subaru Opinion" so I took my car to the Subaru dealer in Grand Blanc, MI. to diagnosis the coolant leak, temperature fluctuation, and check engine light. I came away with the shock of my life. My Outback needs some work. $6500.00 of which $3300.00 needs done ASAP. I'm taken under the car and visually inspected where both coolant and oil have been leaking, and I sure over time will gradually increase, because I need an engine reseal. This explains in the last week why I may see a small amount of coolant leak on the round and the engine has a hot oil smell sometimes. The subsequent item on the list of work that the dealership informs me needs done both front inner axle boots need replaced. Subaru of Grand Blanc informed me that the check engine list is a P0420 code meaning catalytic converter efficiency below threshold. I'm informed the converter needs to be replaced, as well entire the exhaust system. I googled PO420 error and found an article on P0420 errors written buy a Justin Stobb of All Wheel Drive in Seattle, WA. I emailed Mr. Stobb my concerns, and he replied not to worry about the P0420 error at this time. The reason the temperature fluctuates is that a non-Subaru thermostat installed. He advised me not to have my car serviced by old mechanic again (something I had already decided), as he doesn't know Subaru's. I feel my mechanic, or his other mechanic's, should have detected the problems when I brought the car in for inspection, timing belt replacement, and front-end alignment. I have googled independent Subaru/Japanese Import shop, as an alternative to the dealership, but living twenty miles from Flint in the heart of GM/UAW country, I have been unable to find any. I joined this forum searching for aid and I wonder, if anyone who lives in mid Michigan knows of an independent Subaru/Japanese import shop in the Flint area. List of items dealership recommends/prices I'm told these 2 items need to be done 1st. Engine out reseal/labor 24hrs/Parts $321.67/total $2691.67 Front inner axle boots (both)/labor 5hrs/parts $90.11/total $590.11 Next items: SES light P0420/Cat Converter failure/ entire the exhaust system labor 4hrs/parts $2057.81/total $2457.81 Knock sensor ( I don't know what this is/dealership explaining) labor 1.5hrs/parts $119.95/total $275.95 Sway bar links/front and rear/labor 1hr/parts $180.18/total $280.18 I don't know what it is, I haven't had the car long, but I care about it. I just feel good driving the car. I feel she has a lot more life left in her. Thanks for your input. Daniel