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Yes you can run them on used motor oil. It is best if you blend it with diesel however. The critical thing about using waste motor oil is that you have to filter the tiny bits of metal out of it other wise your injectors and injector pump wont last.
People I know that have had both the 300D and the 300D turbo said that the turbo got better mileage. If you want the best mileage get a 240D.
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