I have a 68 vet, what is the newest year engine that I can put in the car?
With some work you could probably put any Chevy V8 engine in your car. The big block was an option in your car so there is a good bit of room under the hood. Check out Chevy crate engines ---- http://www.chevrolet.com/performance/crate-engines.html
If you want to run an engine from a current model car I would check with the Corvette club for transmission compatibility. Why don't you keep your car original and rebuild the correct engine?
VETTE magazine shows Corvette for several years with different year engines. Your year will hold most any engine. To change to a newer engine will be a lot of work, and expensive to do. I have over 470 HP in my 1969 with a bear 350 small block that I had built. It is a stroker (400 crank) with Edlebrock heads, headers, dual throttlebodies bodies and other upgrades to the engine. I also dropped in a 5 speed transmission and larger exhaust pipes. Go to a Chevy dealer that features a racing division i the parts department and they will tell you what you will need.
Other side of my engine with the dual throttle bodies EFI. To add a different year (newer engine) the motor mounts need to e changed, as will the transmission and maybe the entire drive train. Like said above, it will cost a lot. The 68 was a fast beast in it's day. Or yes, suspension and brakes, are also something needing a look at. Any newer engine with a computer will require modifying the exhaust and adding sensors not on the early C-3s. Unless you are ready to completely rebuild the car under the hood, like Full-of-Regrets said, look at crate engines and find out what is needed to drop it in.
It all depends on what you want. Monster HP or just a nice driver. I would look at the connect and cruise engines myself.
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