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The trouble code P0325 on a 2004 Honda Element probably means there is a faulty knock sensor. This sensor acts like a microphone, detecting engine knocking sounds that are then used by the computer to adjust timing. When the timing is not right, there can be a noticeable loss of power and potential misfires, affecting gas mileage by causing the fuel system to overcompensate. A failed knock sensor will turn on the check engine light and trigger a set of related codes. Check that the wires to the knock sensor are intact and free from contaminants like engine oil.
The code P0325 on a 2004 Honda Element indicates an issue with the knock sensor.