Here is what badly worn gears look like. There gears are from a 40 hp engine. The engine was still running but had started to make a lot of noise on the last trip out. The noise had started a few trips before I took the lower unit apart.
In my case.....the parts for a complete overhaul looked to cost about $ 1000. I might have gotten by for $ 7-800 worth of parts, if I did not replace a few internal parts.
The main problem I saw in doing the work myself was the lower drive shaft gear instalation. This gear has a spring behind it and it must be compressed to get the nut installed [see second picture]. Looked like it took some kind of special tool to do this, so I would have to have some shop do this for me.
I ended up finding a complete lower unit that was in very good condition [only ran in fresh water] that cost me $ 700 delivered. I ran that engine a couple years before selling the boat.
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