Hi,
The diesel options in Defenders are:
2.5 non-turbo (1984-1990): 68 horsepower, slow (just about do 70 MPH, cruise at 60) but very reliable and about as simple as an engine can get. 26-32 MPG depending on how you drive it. Surprisingly capable off-road. Check the timing belt has been changed when it should be (45,000 miles), change the oil every 4,000 and it will last forever.
2.5 Diesel Turbo (1986-1990): 85 horsepower- HUGE improvement over the non-turbo in terms of on- and off-road performance. Will cruise at a rather noisy 70. 23-28 MPG. Doesn't have a good reputation and needs PERFECT servicing to last. The later ones were much better (mine is one of the very last,has done 136,000 miles and still going strong) but if abused and neglected will crack pistons and cylinder head. Most of the bad ones went bang a long time ago so the good ones are left. There are lots of them about at reasonable prices.
200 & 300Tdi (1990-1998): 107 horsepower (200Tdi) and 111 horsepower (300Tdi). Enough has been said about these engines. In a whole different world compared to the older engines- performance is pretty average by car standards and you can comfortably cruise at 70. They last forever if maintained, but if not they wear out fast. Generally it seems that 200,000 miles is an average life, but some go WAY over that. 200 Tdis are noisier and have head gasket problems. The 300 is quieter but some early ones had a cambelt fault that should have been fixed by now. You can get 32 MPG out of a Defender Tdi if you drive it properly. Like all diesels, good at off-roading and towing. The downside is that Tdi Defenders are very much in demand so the good ones are much more expensive than the earlier ones, especially late 300Tdis.
If you are after cost-effectiveness, 2.5 non-turbo Land Rovers are cheap and will do everything you ask of them- they're just very slow on the road (0-60 time is something like 28 seconds). 2.5 turbos are much more useable and are also good value to buy so long as you get a good one. Tdis are brilliant to drive but carry a suitably inflated price tag.
Hope some of that (at least) helps.
Jack
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