Like Allan says the cam position sensor was problematic on the 7.3. The good news is it is covered under a Ford recall. The original factory sensor is black. Sensors installed under the recall will be gray or dark blue. (The recall-installed sensor in my '99 is dark blue...)
Other things to look out for:
- Has the coolant been maintained? A DCA additive is required to prevent cavitation damage to the cylinder walls.
- Glow plugs all working? If you can, start the engine after it's sat 12 hours in temperature below freezing. You'll know quick whether the glow plugs are good(!)
- If the truck has been run where deicing salt is used, check for corrosion on the oil pan.
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Properly operated and maintained the 7.3 is pretty bulletproof. I have 100K on mine. The only maintenance it's needed are routine filter changes, and coolant replacement, and a couple fresh sets of batteries. (I live where winters seem to last about 7 months. Replacing the batteries every 4 years is cheap peace of mind for me...)
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