territory timing belt change is scheduled for 165000 or ten years...
i agree it is a pulley/bearing issue
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Thanks for the input guys. It does make sense that it could be a worn pulley or bearing to make that edge damage.
I will check and see if can find any play in the pulleys....i hope I find it [emoji15]
Update - so I checked the pulleys that were on the engine and found that the tensioner and two idler pulleys do have play and made slight clicking sound when rocked.
I then checked the brand new replacement pulleys (dayco brand) to compare. I found that there was very slight play in them but no clicking sound. The old tensioner pulley definitely had more play than the new one.
I also observed that the damaged timing belt had stretched, since the tension indicator was out by about half a "window".
The cam pulleys/dampener were rock solid with no play at all, so I'm happy with that.
Given this, I am thinking that the belt edge damage was caused by a combination of worn tensioner, idler pulleys and perhaps even a stretched belt.
If anyone else has any thoughts or experience with this please feel free to share.
I'd say the buggered pulley bearings caused the stretching, belt then wandered and this damaged the edge of the belt.
It looks like you dodged a bullet and found it before the belt failed and lunched the engine.
Very timely, though this was on the Territory donor engine so looks like the previous owners dodged a bullet by having their car written off just in time [emoji1].