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the problem is, the old cars you speak of are already worth pretty good money if they are in any sort of decent shape.
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It's actually not too hard to find one out here for $2-3k that's in decent shape (good body and interior, no rust). It wouldn't be a show car, but that's not the point; just good enough to be an interesting daily driver.
I think it could be done for under $5k total.
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The diesel conversion is going to cost a lot
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If I'm doing the swap myself, where is this cost factor coming in?