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I agree a new engine is a good idea. Maybe get one with a few miles on it out of a wrecked avalanche or other truck. You could build yourself a sweet tow vehicle. How much does it cost to intall a new engine though? Doesnt strike me as very hard to do in that type of vehicle.
BTW Soukus $4K is 10% of $40K, not 1%. Still a smart decision though.
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