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What is the all time best, durable diesel and its horse power rating in a school bus also wouldn't hydraulic brakes give better service over time due to less parts to fail?
First: Parts availability. You don't want a dinosaur you can't get parts for.
Second: The California factor: CA is trying to drive older diesels off the road. Certain other states, and some cities, "me too" what CA does. 6-71s, 8-71s are going the way of the dinosaur.
You may want to consider a turbocharged, aftercooled engine with electronic control.
Which is why I am looking at RTS buses with 6V92TAs. Hopefully they will not be hounded into obsolescence for a while.
In school buses, the best engine over time has been and continues to be the IHC DT466.
It has been sold in several HP ratings from 160 HP to 250 HP with 190-210 being the most common in school buses.
Any V-type engine is not going to have as much pulling power on the hills as the DT466 even though the HP ratings may be similar.
The DT466 has been installed in school buses for almost 30 years now. It has changed the fuel management and soon the valve train will be changed drastically. But the basic engine is still in production and will be for some time to come.
My choice for best all around school bus engine has to be the IHC DT466.