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I REALLY wanted to put a 1.4L turbo diesel in a Tercel/Paseo (heck, I still do). They have them everywhere but in the US. It would have gotten me up into the 60-70 mpg range I believe pretty easily. The main thing that stopped me was that if I was going to build a car for fuel economy I was going to plan on keeping it for quite a while. Well, things get old and break and I really didn't love the idea of waiting weeks for parts and paying shipping up the wazoo to get them here. That is ultimately what stopped me from what would have been a really fun project car.
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