There are factory rebuilt alternators available from a number of sources closer to $200. They come with a warantee and a refundable core charge. I'd go with rebuilt from Porsche versus an unproven local shop. And many people like the Bosch replacement. I prefer sourcing from Porsche because the fit into the fan housing is tight and any manufacturing miscue will be a problem. On the flip side, if your local shop has a good track record with VW/Porsche alternators, I'm sure you'll be fine and you do have the advantage of using the same alternator case.
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CWL
'86 Carrera Coupe
'88 Carrera Cab
'02 525i Sedan
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