The Esslinger is the most widely used midget engine, and you can take a ford 2300cc iron block (pinto, ranger, old mustang) an esslinger catalog and a fistfull of money and build a steel block version of the esslinger ST engine.
An older favorite was the pontiac... you can get a 4cyl S-10 pickup block and start building a steel block pontiac...there are lots and lots of used heads, injectors, oilpans and such to be found pretty inexpensively.
A newer low buck engine that is gaining momentum is a chevy ecotech. There are several places that sell injection systems, ignitions, and re programmed ignition boxes that be used on a basically stock ecotech long block..this option is not up to snuff with the esslinger, gearte, mopar, fontana engines being used in 90% of midgets but for the money it is a really good short track or sportsman series option.
The sad thing is that you can usually find a good used gearte or fontana engine complete cheaper than you can scratch build a stock block motor, and you will have a motor that is more apt to be competitive with most midgets, but you will have much much more maintenance cost with one of these.
If you decide to go the Ford 2300cc/homemade esslinger route, get ahold of me... I have one right now with lots of the big ticket components already found and ready to go (injection, oilpan, header, etc) that I would sell or part out to somebody wanting to use them.
Loose is when you hit the wall with the rear of the
car, tight is when you hit the wall with the front of
the car. Horsepower is how fast you hit the wall and
torque is how far you move the wall.
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