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What's wrong with the diesel? Those are getting rare, especially with them getting torn up for swaps all the time. If you owned it since new and it's in good shape, it will bring a lot of bucks as an all-original Diesel. Fix that and sell it then swap a V8 into an old gasser would be my recommendation. Gassers are dime a dozen, the diesels are rare birds and in high demand nowadays.
I used to have a Ford 5.0L V8 Volvo wagon, and now I drive 2 Volvo diesel wagons, an '85 745 TD and an '82 245, so I speak from experience...
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George, Seattle WA
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