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I like that you're making me give a thorough rundown of the cost of this project, rather than an estimate. I will provide the actual cost of things I expect to buy for this project to get an accurate estimate.
1988 Jeep Comanche 4.0L 4wd - $2k
Could be talked down to $1400 due to condition and mileage
-500 from selling the engine, transmission, and transfer case
Net cost: $900
2003 Volkswagen TDI - $2k
(This was cheaper than any sources of a 3.9l cummins engine I could find)
NV3500 - $57 from Pick n Pull on a half day
Wiring harness- can be used from the volkswagen
NP241 transfer case- $144 ebay
Custom driveshafts- ~$600
Front and rear air lockers $1700
Air compressor: $300
Tires and wheels: $1100
4.5" lift kit: $500
Steel for custom rockers: $400
Skidplates: ~$500
That comes out to ~$8200. I would expect to spend at least another $1000 for mating the engine to the transmission, and other things depending on the condition of the engine. So $10k would be a better ball park estimate.
A comparable 3 year old vehicle would be the 2016 Toyota Tacoma or Jeep Wrangler. Those are currently selling for around 30k. A basic 3 year old sedan is around 9-12k right now.
If done correctly, this can be a reliable vehicle. Diesel engines can last a very long time. If I hypermile the truck, it can probably get better mpg than the 10k Corolla. Other Jeep owners report getting an average mpg in the 30-range.
TLDR:
Will it save money? Not compared to buying a sedan, but the fuel cost will be about half of what driving a gasoline Jeep is.
Will it be cool? Yes it will
I would like to add that this would end up being the 3rd-- or even 4th vehicle in my household by the time I am finished. So reliability isn't exactly the greatest concern, though I do expect it to be reliable.
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