You're describing the procedure for lubing a hub bearing, not a pilot bushing. And it's not oil, it's grease.
In my 12 years of working with cars, both professional and personal, I have NEVER heard that procedure described for a pilot bushing. Also if it was the proper method, wouldn't it be somewhere in the FSM? I have never seen that in ANY factory FSM, both foreign and domestic.
I think you're confused. Or maybe this is some new pioneering method that you learned at UTI...?
I've NEVER done pilots like this and my bushings last me at least 80,000 miles. Is that poor wear for a brass bushing to you? Here's a tip: don't try to re-invent the wheel.
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