I was told that the timing chain, guides and tensioner all have to be replaced and that this would cost at least $2000. The mechanic said that I should just retire my car instead.

Is this the going rate for such repairs? I'm located in Southern California for the record.

 

Yes. I'm going through the same issue. Absolutely love my 1995 SE that I've owned for 21 years and has 400k miles. Leaks oil so bad from behind timing cover and the chain,sprockets etc have to come out to replace the Orings. Trying to find someone here in Florida that could help as well...or I'll have to retire it as well.

 

See if any automotive colleges by you would take the vehicle as a demo vehicle, some still take cars like this that students can do a major repair on and you just pay for the parts

 

if you're in Southern California, have you considered getting the work done in TJ? Just make sure the shop South of the Border has good Google reviews. The hourly rate there should be $40 per hour or less.
I did a quick search and found this:

https://www.google.com/search?q=HOSPITAL+AUTOMOTRIZ

and

https://www.google.com/search?q=Tall...+de+los+Pobres

 

Did they remove the access covers and inspect the main tensioner and guide? You are opening a can of worms with a timing kit as many other things are in the way which may need replacement. What does the quote cover?