Advice on a possibly bad 2TR-FE and shady dealer.
 

Don't know if this is the proper forum since this is a mix between mechanical and legal issues.

My dad bought a 2008 Tacoma 4x4 Extended Cab, 5 Speed manual and 2TR-FE engine with 133k miles from a shady dealer in Costa Mesa, CA. I'm afraid it may have engine issues.

I was following my dad in my Toyota Pickup and noticed, momentarily, a puff of blue smoke. It lasted briefly, maybe two seconds at most and it went back to clear exhaust. It did this a few times throughout a one hour drive, but it was never constant. Did a quick "dancing cap test" and there seems to be a lot of pressure coming from the oil fill cap. Don't know if this is normal for this engine, but I'm assuming this is indication of blowby.

Second issue was a CEL P0335: "Crankshaft Position Sensor A Circuit Malfunction." It came up after a friend stalled it real hard. I cleared the code and it hasn't been back with over 20 miles driven since reset (may need more miles driven to complete sensor test?).

Last issue is power. I've never driven a truck like this before so I apologize if this is normal for the truck.. This truck doesn't really climb well. On leveled ground it can get up and go, but the mountain roads on SR 330 are a bit of challenge. I found myself constantly switching between 2nd and 3rd gear to maintain speed limit. It does have 285/75/R16s and a 3"+ lift with a camper shell. The speedometer seems to read correctly compared to a GPS. Don't know if it's been regeared or possibly has a reprogrammed speedo. I know these are some huge tires for a four cylinder, but with the former two issues, I'm wondering if there may be a power loss due to damaged piston rings, valve guides, or faulty crankshaft positioning sensor.

The dealership offers a 3 month, 3000 mile warranty on the drive train, but I feel like they will try to do everything they can to prevent my dad from claiming it. They don't have a good reputation on Yelp and other online review sites..

So I'm seeking advice on what to do. I was thinking of taking it to a Toyota dealership for a leak down test to have unbiased proof there is something wrong with the engine, but I don't want to spend a fortune on a diagnostic. I'd like to keep the budget under $120.

If these guys try to screw my dad over, is there any legal means of getting them to pay for the drive train?