Alright guys, im new to the forum and have looked around on some threads but havent had a whole lot of luck. Here's my problem:

2004 Audi A4 quattro, 1.8, 117K. My friend was driving and the low oil pressure light came on, she added oil, and continued driving. Long story short, she ended up stopped on the side of the road with dashboard warning lights for oil pressure and loss of power.

The tow truck driver shows up, and literally starts the car and drives it onto the flat bed truck. Upon taking it to the dealer, they tell her that the engine needs replaced and that it will cost 12-14k to fix it. They stated that the valves and piston came into contact and offer her 1k basically as scrap. My gut tells me they are trying to pull as fast one on her because they never removed the head to check for sure.

My question is, if the timing is off so that the pistons and valves came into contact, then wouldn't the timing belt be shredded/broken? If not the timing belt, then the cam tensioner,plastic tensioner pads or etc failed? If so, how does the car still start up and how did the tow truck driver drive it onto the flat bed?

ANY chance that this is related to the Oil sludge problems that 01-04 Audi 1.8 have?? (sorry that it is so long of a post, just trying to give as much detail to help you guys help me!)