I purchaed my 05 GT in Sept 2004 - probably one of the first sold.

I got a 5 year loan.

Unfortunately, my finances aren't as healthy as I would like.

Would it be a good idea to sell my Stang and get a cheap used beater (no more than $4K) ?

My stang is my daily driver and my only car.

I still owe quite a bit on the loan - roughly $23K. Can I sell an 05 GT (Automatic) for $23K?

 

I think the best advice on a car is to buy the car you like most (that you can afford). You are less likely to sell (and take a loss) and buy another (and pay more than it cost the dealer). To be sure, it is a tough call, but in the long run I think you are better off holding on (if that doesn't involve too many financial compromises). I am in a similar situation. To resolve it, I've been studying for a series of tests that should improve my income situation (when I pass). Good luck, sorry no easy answer for this.

 

Just my opinion, if my financial situation didn't allow me to run my 05 without eating KD forever, I'd take the loss on the sale, get rid of the loan and buy an older civic, mazda 323, corolla, etc. They're reliable cars that get great gas mileage and with just a few add-ons look sporty too. My backup winter beater is a 93 Mazda 323 hatchback 5spd and is a great little car. Kinda makes me wonder why they changed the model name from GLC. When I drive the Mazda it cuts my fuel bills to about $80/month as compared to my GT's $200/month. Let's see 12 x $120 = $1440/year. That would make your $4K buy only cost you $2560

 

I'm waiting until I can sell the car for the balance of the loan.

I think in a few months that's acheivable.

I getting to that point in the loan where the bank has got most of their interest and more of the payment is going to the principle.

I'm certainly done modding the car - no more mods !!!

 

I'm somewhat curious how you still owe $23k after 30 of your 60 month loan... That would equate to a $46k loan after interest... or roughly $750/month...

 

No, it was a 36K loan including 3K markup, taxes, 2K maintenance & extended service.

The amount of pricple paid is not 1/2 at the mid-point of the loan, the bank scales it so that most of the initial payments are interest.

Based on a compount interest calculator:

http://www.moneychimp.com/calculator...calculator.htm

Initial principle: $36K
Interest rate: 5.0%
Number of years (72 months or 5 years).

Total loan to be paid over 5 years = $46K

 

What are your last 6 vin numbers and your mileage? I always try to stay at payoff=resale value. There is much more demand now for properly modified Mustangs than when some thought that buying used stock might be the best Mustang used car option. Good luck deciding, it's not an easy decision.

 

not to burst any bubbles - but i just got my 07 gt/cs (msrp about 31k - xplan just over 26k). im willing to bet wholesale on the car isnt much less than that right now. assuming these figures, i would think that you are a bit upside down. the only true way to find out is to have the car appraisesd. take it into a dealer and get a buy figure on the car (even somewhere like carmax or your local ford dealer). that will be a solid wholesale value of the car and you can see if the market is close to your loan value.

plus, once you wait a few more months, your car is an additional model year older and depreciates one more notch down.

finally - 72 months is 6 yrs.

 

Sorry to hear about your situation, but my advice is to not wait a few months to sell the car. If you wait a few months, the 08's will be out and you'll take another depreciation hit, putting you further into the hole, instead of getting closer to breaking even. I'd look up the trade in value on www.kbb.com and see where you're at using good condition. That might be the best you'd expect for the car, unless you can find a private party to purchase the car. If you have a CarMax in your area, they typically offer top dollar.

Good luck.

 

Good idea.

Might as well ride a bicycle.

 

Decideing whether to sell or not is up too you. No one knows your situation best but you. If it helps though I just sold mine a couple of weeks ago. I still owed just under 22k and it sold for just over 25k. Check out the autotrader for similary modded cars to get an idea of what you can expect to get for the car, then go from there.

 

If you owe 23K, then you should be able to sell it now for at least that much if your miles and condition are in order.

 

Most loans are simple interest loans where the interest is accumulated as you pay. Its rare to find one where you pay interest up front. Are you checking your actual payoff or just adding up the remaining payments?

 

I'm actually surprised at how well the Mustang is holding it's value. I have an 05 GT that I got on X-plan in June of 05 for $26,600. KBB says that retail value on my car, with 16k miles, is $26,700! Now that's not bad! Of course getting that for it may be another story, and trade-in is more like $21.8k. Mods might help resale, if they're done tastefully and didn't cost too much, but you won't get you money all back, and they could hurt resale as well. You gotta decide. Good luck, but you will miss the 'stang if you sell.

 

Good answers have been posted here. I'd like to add something.

Just because you get a cheap used beater for no more than $4k doesn't mean that your money problems are over. Owning a cheap used beater may mean expensive repairs and maintenance. These older cars can nickel and dime you to death, not to mention the inconvenience of having it beak down somewhere and the expense of having to have it towed to a garage.

I suggest you start shopping right now for a good used car that's been well maintained. Friends are a good source. You might know someone who has maintained his car and is willing to sell it to you. I'd even pay a few extra bucks for a good used car that you know is in really good shape.

You know, like Lime Gt who just posted a reply and owns the 93 Mazda 323 hatchback 5spd that's a great little car. It's been my experience that if you can find a good used car that's been well maintained and not abused, grab it. A good used car is challenging to find.

Shopping for a good used car now before you sell your Mustang will give you some perspective.

Is your Mustang having mechanical problems? How much is your Mustang costing you to maintain? Is you Mustang reliable transportation? Are high insurance premiums killing you?

These are some questions to weigh while considering the switch to an old beater.

Hope this helps. Please let us know what you decide to do and how everything works out. Best of luck whatever your decision.