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It is an interference motor you can have piston to valve contact 100% on these motors. That's why some people clay their motors when doing a build to see the max vtc they can run. I feel it in taking your car to garages every garage I've taken my car to had messed something up. The shop that did my k24a2 swap messed a bunch of crap up including breaking like 4 bolts on my oil pan as I had then swap the z3 pan over was it's better than the a2 pan and the bolts are broke and they didn't bother fixing it and that's after they took days fixing other "broken bolts" I'm not even going to get into the rest because they ruined everything they touched like leaving sensors unplugged, not putting the wheel well back on, tearing my center consol apart to put in shifting cables and then claming they can't add they didn't have the tools to do so even though my carpet was all pushed back etc. The other shop left my alignment undone and didn't even try to get it close after getting a clutch done amount not tightening my tie rod so on the way home when I turned left something clunked really bad and my clutch still doesn't fully disengage which is why I took the car their to have a new clutch put in and then they said with the new clutch the issue was now gone and I got in my car and sure enough it wasn't. People don't like working on 8th gens because it's a tight setup to work on but any garage that said that is just lazy as its your money and if you want it done they should of done it I mean I get warning you but if you said I still want it done and they didn't want to its because they are lazy so I wouldn't go back there. As far as piston to valve contact I think the damage would be on the stem on the valve not the head of the valve but if you get a bore scope or have someone else bore scope it and there's no damage I would take pics and get your money back. If there's one thing I've learned over the years is if you take your car to a garage you always look over it after to make sure they did what they said they did and make sure everything is good and they didn't leave anything lose etc. There's tons of shops that pull scams like changing spark plugs etc and bill you for labor and parts and don't do anything. I've seen many videos of people taking their car to a garage and they claim they need a tune up or new ignition coils etc and then charge them for it and when they take their car to a backyard mechanic they notice none of that stuff was changed. Most shops think people won't take their car apart and look to make sure do always go over their work ya know. As far as the motor goes out would be cheaper to rebuild your z3 then buy one as z3s with 100k miles are going for like 2-3k however the cheapest option would be to go k24 as you can find then on eBay with 50k miles for 800$ if you wanted to get the most bang for your buck is get that and then have your z3 head rebuilt with upgraded valve train and have hit a Frankenstein built. A k24 will swap right in for the most part. Interswappable parts too pretty much as well
 
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