The Tercel has a serious problem with Mr RUST

If you drive your car anywhere within range of Mr RUSTS

If you DON'T stop Mr RUST

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I've been using ATF (trans fluid)...sprayed (using a bottle with stream setting) into any rusty areas....paying attn to the door & hatch bottoms, front & rear fender wells, door sills, frame channels and espec looking for any rust holes or rusty areas.
I'm talking enclosed areas...not outside surfaces.
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A NEW material I now use is a can of spray lithium grease. Works very well on brake/fuel lines...random surface rust area on the floor pan under the car...MUCH better than undercoating for sure...but not for use where it will be hit by lots of spray....i. e. wheel wells.
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When I do this in the fall I run the BACK of the car up on ramps which allows the oil mixture to run between drain holes so there is good coverage. In some places I drill holes in the sheetmetal in order to get the oil in...trying to avoid drilling in any areas usually hit by water spray, such as wheel wells.
I also cut some slits in the carpet inside in certain places to allow putting some oil in the worst areas (this really can't be seen from inside if you keep the oil UNDER the carpet). The main areas for this are the front floorpans on both the drivers and passengers sides.
I have found NO WAY of guaranteeing that water doesn't get into these areas. Leaks apparently develop under the intake vents or at the windshield. Pull up your carpet to check the padding under it.
Also, I check inside the front & rear wheel wells for any holes in the undercoating or metal. Water getting thru holes on the wheel wells can do some real damage that you might not be aware of right away.
Especially at the top of the rear wheel wells, there is a seam that can allow water to get into the car and this can do some serious damage that will be covered by the plastic inside. I had to do some extensive welding in the top spring support area on the right rear side.
Here is a pic of the same area on the left side...this has gotten worse over the last 2-3 years and needs to be repaired...best bet is to remove the shock and spring and weld some 1/16"-3/32" sheetmetal over this area...then clean it up....paint it...goop with roof tar? Also need to remove the plastic panel inside to see what damage shows inside.
This is not nearly as bad as the other side was.

You also need to have the front plastic wheelwell liners in place. Where the plastic liner contacts the wheel opening in the front fenders is a typical rust area. This could be stopped by removing the liner and cleaning, painting and sealing the sheet metal in the contact area.
I use a screwdriver to check for areas where the undercoating is loose under the fenders and elsewhere; if water gets behind it....RUST. I try to get this cleaned back to non-rusted metal where the undercoating is still in good shape.
I also try not to make new holes thru the undercoating...if you do...you aren't helping the cause.
If you have access to a pressure washer...it would be ideal for cleaning up these areas...and finding rusted spots.
How to do it:
1) Find the holes and rusted areas...sometimes obvious...sometimes not. Many times a rust hole that starts out small...turns out to be major...even involving structural damage that will need to be welded.
2) I use a scewdriver and pointed awl to chip away ALL loose undercoating, rust, and scale. Then a wire brush...hand or powered.
3) Then I use a paintable waterbased phosphate treatment...rust converter (Naval Jelly?).
4) Then a paint like ZeroRust primer.
5) Then aluminum/plastic/rubber/tar roof repair tape over any holes....covered with plastic roof cement.
...or plastic roof cement and fiberglass cloth or tape...I use a good layer of roof goop first, add the cloth or fabric tape over it, and then go over the cloth with another layer of roof goop.
* ANY paint used in the wheel wells needs a layer of roof goop over it. ANY places where you MIGHT have chipped thru the undercoating needs a layer of roof goop over it.
Everything used above must be allowed to dry pretty well before the next step is taken.
Note: In my experience, the water based rust converters don't last when used alone, regular spray can primer sure doesn't, and the undercoating in a can doesn't...especially in a wheel well.
The special paints for rust (like ZeroRust primer) that cost from around $25 per quart on up do, but not in wheel wells where they will get chipped by gravel, unless covered by roof goop.
Oil works because it creeps into the smallest areas, stays there and repels water, especially in enclosed areas where it won't be washed away by water. Used ATF is the best to use...has the least smell and the cleanest. Since you don't use a lot...new ATF or thin motor oil would also do it.
The stuff I use for stopping rust...
Aluminum roof repair tape:
Have been experimenting with this material and find that it works real well for wheel well repairs (rust holes and open seams). Recently needed to remove some that had been put on about a year ago and it was still very difficult to get it off. It is very hard to tear this material by hand...so it is durable vs gravel and ice punctures.
It can be bought as a 6" wide tape or in 36" wide rolls. You want the kind that has an alum + plastic membrane with about a 1/8" thick layer of asphalt/rubber adhesive on the back covered by release paper. Can be found at building supply stores.
For best results it needs to be applied under certain conditions:
* temps above 60 F
* oil/grease free surface
* dry surface
* clean non dusty surface
* keep fingers off the adhesive
* DO NOT remove the paper backing until you use it.
You can use a good cleaner or window cleaner to get the surface in the right condition...then after applying it and rubbing it down to be sure it adheres (no bubbles wanted)...I cover it with about a 1/8" layer of plastic roof cement.
This material might also work for outside painted surface rust hole repair, though it might be too flexible. Good chance it would work pretty well though, since alum tape is sold for this purpose. Sure won't loosen up or allow water in or out.
Plastic roof cement:
I've used this previously along with fiberglass seam tape or with the material used as ground cover to stop weeds. I try to use a 1/8" thickness. It will get brittle in cold, but the fabric backing and thickness helps it to last. Since it is made to be used in harsher conditions on a roof (much sunlight and heat), it will last pretty well under a car.
ZeroRust primer (JCWhitney.com):
This is a heavy-duty solvent-based primer used over rusty steel to seal and stop the rust. There are several brands of this kind of paint sold...this is one of the least expensive ones. A quart goes a long way.
This paint will stop rust if used correctly....
The key to it's use is to get ALL scale off the area you want to cover. Scale is iron oxide (rust) that has built up on the steel. Thin surface rust is OK, scale is not. I usually used a small hammer, screwdriver, and a pointed awl to clean these areas up. Even small rust pits will keep this paint from working right. Many times you might think you are down to rusty steel, but you aren't...if you don't get it off...the paint won't work that well.
Rust on or thru outer surfaces:
The real issue is whether there is a hole THRU the metal...if there is and there is still a source of water behind the metal...the special paint & bondo won't likely stop the rust. In areas such as the bottom of the hatch, where you'll have trouble getting behind the metal to cleanup, treat, & seal the rust...oiling can stop it.
In some places, like the fender edges at the front wheels...you CAN get behind the metal by removing the liner, and stop the rust.
I use this in wheel wells at times, though it might be overkill to use it there. It makes a very good surface for the alum tape though.
Best to pour out what you need and keep the lid on the can...you DON'T want to to thin it. This paint uses a special blend of solvents you won't be able to duplicate. Don't try to keep it in the small can overnight though...it will evaporate.
** I'm not so impressed with this paint anymore...keep having to do some areas over. POR 15?
Zinc phosphate coating:
Also have been using something similar to Naval Jelly that is supposed to leave a layer of zinc phosphate on the rusty steel...under this paint.
Note: These methods are what I'm using right now with some success...my methods may change over time and you might have better methods...if you do......you should post them.
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Now use lithium spray grease on new SURFACE spots underneath...and on the fuel/brakes lines....anyplace where it typically won't get washed off...not in wheel wells. Better than undercoating or tar.