Zappo, mate you just need to read some long term reviews of the Ohc.
I posted mine a couple of weeks ago,
http://www.team-bhp.com/forum/long-t...-80-000km.html
Susrutha, to answer a few of your questions:
The quote you have got is quite reasonable when compared to the skyward prices i have heard on the used cars down south, in mumbai the same car would fetch around 2.5L
At 85,000 kms, you will surely need a clutch change anytime soon if the previous owner has not changed the same in the past.
New clucth plate and bearing should cost you in the range of 3,500 and to that you could add labour charges.
Honda authorised service centers are expensive when it comes to major repairs, such as radiator change, clutch change, e.t.c and you could save yourself some serious money by finding a competent individual garage.
Ideally you could send your car to the service centre for a regular service, at the end of the service the concerned person would give you a service summary which would include all the work the car needs.
I would take this list to the friendly neighbourhood garage, and get work done for peanuts when compared to an authorised service centre.
The 1.3 Ohc would be good for 10-12 kmpl, depending on driving style, a member ZENX from bangalore has recently redone his 1.3 Ohc, you should check with him for his ownership experience.
Another consumable you will in most probability need is a set of brake pads, which should set you back by around 2k, and just get the engine mounts checked too. There is a good chance you could have one or two broken ones at 85,000.
Honda engines are built to last, and expecting one to not go down on you for a long time, is certainly not expecting too much
manson.