SpeedCostsMoney

I own a 2010 Mustang convertible GT. They payment us pretty high and I owe right at about what the car is worth. It has 70,000 miles, the car also has new tires and brakes. I have kept up with the maintenance. The car is in good shape.

I am going to refinance my loan at a better rate to lower my payment but I am feeling a little uneasy about starting the payment over at this mileage. I could trade in on a 2015 Mustang ecoboost for the same amount of money a month.

I figuring I would have the warranty. I am worried about making a payment and something going wrong with my current car and be out of luck. Any thoughts on this?

TripleBlack14

What your 2010 is worth and what the dealer is willing to give you as a trade can be vastly different. Is the trade-in quote enough to pay off your existing loan?

If so, the upside is that you drive away in a 2015 at the same monthly obligation and have a warranty.

The downside is that you'd be going from a V-8 to the EB if that is of importance to you.

Have you considered a 2014 GT? I think Ford is still offering incentives on the 14's, and the dealers want to move the S197s so they'd probably sweeten the pot on top of the incentives. I'd be willing to bet you could still get a GT that way for about the same amount.

But if it's a 2015 that you must have, the EB would be the only way to go if you want the peace of mind that a warranty provides.

Glenn

yea I would look at the 14's also thinking the incentives would be a big help

cdynaco

You didn't state the length of the loan, but for longer loans the declining balance usually matches the depreciating value fairly close (until the last few years) so that is not unusual. But you are close to seeing the loan balance drop quickly with each payment, and owning the car outright.

Refinancing at a lower rate - with the same remaining months - should be the real question IMO. Then you will soon have a paid off vehicle. And you won't be debating "uneasy starting the payment over at this mileage". You are making an apples and oranges decision. Credit Unions abound with (pre-owned) auto loans in the 3% range.

Whereas if you don't mind the payment (and interest) starting over for a new 60, 72, 84 months, then Yes - just buy a brand new one with a brand new warranty (keeping in mind this is the 1st year of a new model - whereas your '10/4.6L is tried and true... and you have already paid most of the interest).

Mustang259

Honestly, I think you will be disappointed with an EB, my test drive experience with one left a lot to be desired, you will miss the v8 and then be stuck with the EB. Just my two cents.

Stage_3

^^This. Plus, you still owe on your current car.
Here's what you do. Refinance, and send in the same amount of money every month or more if you can and pay it off ASAP. Whatever the difference is in savings from refinancing, send that in amount to help pay it off sooner.

TripleBlack14

That's great advice. Years ago when I refinanced my mortgage I did the same thing as often as possible. I was already used to paying the higher amount from the first finance, so I never really felt the difference.

SpeedCostsMoney

There are some fair points. I already way past depredation on my current car and now really making head way to pay it down. I am thinking of putting 2-3k down weather I refi or not so that is more off what I owe.

As for the EB that is the only engine I would get in the 2015. I am driving a ton to get to work and I need the gas millage. I am just glad the gas is cheap right now and the 4.6 takes regular. I putting in more than 20k miles a year on my current car that is why I am weary of keeping my current one. Plus I am not really upset about going to a hard top since it seem that the top is up most of the time anyways.

I could just refi now and make extra payments and when the car is paid off then look at getting a new one later.

Mickstang

Your payments on the 2015 might be about the same per month as you are currently laying out, but you'd have a whole lot more months in front of you to make those payments.

IMO (and I know many would disagree with me), vehicle loans represent a losing game for the buyer and a big win for the lender. I haven't had a car loan since some time in the 80's, so all my vehicles have cost me only the negotiated amount, plus the usual related expenses, and not the mind-blowing bottom line one pays when the interest is factored in, especially on a long-term car loan. My advice: Pay the loan on your current ride and begin saving serious bucks for the day you decide to trade up.

Stage_3

Exactly Tom. If you can afford to pay that amount to begin with, keep at it and you'll shave off the amount and time off the loan.

SpeedCostsMoney

I decided to refi and pay my payment like I am now. When she is paid of I will mod the heck out of her or sell it and buy a new GT with a cash. I might even try to find a used boss or Shelby to get. Thanks for the info.

slow.stang

No offense to anyone here, but I'm not sure this is the place for financial advice. I know lots of car guys that finance horsepower...smh.

Stage_3

That's awesome. Good for you.

I'd like to hear what the best way to refi or pay off a car then. Maybe all of us can be enlightened? Maybe we're doing it wrong? I'm not being facetious, just curious.
So,...let's hear some good advice so we can pay our cars off quicker. Thanks!

Mickstang

Easiest, simplest first baby step would be to say: "Do I really need that four-dollar cup of Starbucks, latest 'Superman' comic book (or copy of 'Big-Uns') or new Star Wars tattoo?" If you can say no, keep those extra bucks in your wallet and send in a little extra against the principle of your loan every month. If you can't make the little moves, there's no point in trying to come up with any means of scrounging up any serious buckage to throw at the Shylocks. I've been there; not going back.

cdynaco

Everyone has to evaluate forum advice on their own, whether its a tune, exhaust, or whatever.

But don't kid yourself - there is a ton of solid advice from experienced hot rodders and a few racers on forums - just like there are a number of us that are active or retired professionals that know how to win the money game. Which basically, only takes researching choices, and being obedient to the calculator. Much simpler than horsepower or handling mods.

cdynaco

"Watch the pennies and the dollars take care of themselves..."

Why? Because you now have the mindset to not just **** money into the wind. I was raised (by Depression parents) to watch the small expenses - and save up for both "wants", "rainy days", and future needs when you may not have your "peak" income any longer.

Shop for deals, put it off if it isn't really necessary, buy used if it makes sense, live below your means... which has allowed me to accumulate a variety of some nice pieces that I really wanted along the way (#901 being just one example) on modest income.
VS 20/30 somethings blowing money foolishly on a new gadget every 6 months (while they live with their parents), or 2-3 times a day on 300 calorie sissy "coffee". (And women wonder why they keep getting fatter. )

SpeedCostsMoney

I came into some money and going to pay her off this month. I am going to drive car payment free as long as I can and mod her when I have some extra cash.

Mickstang

Good plan. This should work out well for you.