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If the tap is consistent with the engine rpm at idle (meaning the tap noise keeps a rythm) it sounds like it could be a worn valve guide or lifter issue to me. Really depends on what they are asking for the car. Have they changed the timing belt? If not, I'd dicker the price down. I think t-belts on that engine are a spendy service...I had a 1999.5 Audi A4 which I believe was a very similar engine and a pain to work on.
Neighbor rolled up in VW Wagon the other day with the 2.5 Turbo. Looked like a much easier engine to work on.
Just me 2 cents.
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'84 Carrera Coupe
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