Rust
Hard to say without photos - if theyre around the rear wheel arch they will probably be right through the metal and require it to be cut out and new metal welded in. If so, its a huge job so $1500 doesnt sound too bad, but id definetaly try speaking to another couple of bodyshops and locals who have had similar work done so that you can get an idea on price in your area and also the quality of work that the bodyshop does
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