a newer gen diesel motor wont be practical unless your willing to do all the work involved. mounting, ecu, harness, fuel system, and all drive train compatibility issues. staying with the turbo diesel of this gen would elliminate a lot of those issues.
this will never get 30mpg hwy. with any motor. 17-25 is bout the best you'll do. and since you have body work to address to, and you want to have 5 grand as a limit, you wont have the funds to do an engine swap or anything other than oem app for your truck.
these are great vehicles. though it fell short, they were a direct attack/response to land rovers.
i'd re-man engine you have. that will keep the value up there and bring your mpg back up to oem specs. in austrailia these are very common with the diesel engines. but if you don't have that config and decide to go that way, you'll have spline miss-matches, possible xfer case swap, and then you will have to address diff gears front/rear. a modern diesel will be considerably more. with the addition of wire harness and ecu install.
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