I think that would be a major step up, power-wise and economy-wise. The Vega is a pretty lightweight chassis and won't give the LL5 much to do, and if you screw in a new tranny with ratios that take advantage of the new engine's torque, you could enjoy some long-legged, thrifty highway cruising.
Where did you find a Vega that hasn't rotted away to lace? Must be somewhere in the arid Southwest.
If you take it on, it would be a pretty cool thread to watch. I'd subscribe to that.
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