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Re: HORRIBLE Mpg!
Putting in the heavier oil will help it burn less oil, as the higher viscosity will allow less oil to travel into the combustion chambers. That same thick oil will also make it harder for your engine to run (increased resistence on internal parts) thus decreasing horsepower and mpg.
If you paid $500, unless the body is in great shape, (I bet there's a decent amount of rust on the bottom of the doors and around the rear wheel wells.) or you just really love the truck, I'd cut your losses and get rid of it. Sounds like major engine problems that would only be solved by a rebuild or a different engine.
Sorry, but I don't see an easy fix.
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