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Re: 307 being called a 350
It's not a bad motor, for normal driving.
Another way to look at it: If you sense the guy is just confused and not being deceptive, use it to your advantage. Tell him you are really looking for a truck with a 350 or 400. To replace the long block with a GM crate long block is around $1500 for the 260 HP. Jegs sometimes has sales on these for like $1250 shipped, but I'd stick with 1500-2000 on the price.
Then tell him you could probably sell the 307 on CL for about $500, if it's in good condition. That leaves a $1000 difference. Offer a thousand - fifteen hundred off the asking price. All he can do is say no.
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