Five Oh Brian

Times have been tough for many people the last couple of years and it has finally hit my household. My wife's job was eliminated last month, but her employer was able to find another position at a lower wage. And last week, my job was eliminated so I've started a new job within the Ford dealership I work for, as well. Our income has taken a pretty significant hit for now, so we're trimming our budget everywhere we can to survive, keep our mortgage paid, and keep our kids in college.

We have a 2011 Mustang MCA Coupe with the V6 Performance Pkg (Sterling Gray) where I work that is calling to me (and the same car in Grabber Blue). I only owe $8K on my supercharged '07 Mustang GT and I can get $22K for it if I trade it in. My wife and I need cash now to float us through this economic transition, so I'm contemplating using $4K of my equity from the '07 GT as a down payment on the '11 V6, and pocketing the other $10K to put in savings.

As much as I love the '07 GT (makes about 480hp flywheel hp, runs high 11's in the 1/4 mile, and only has 28K miles on it), the '11 V6 would lower my payments, free up a ton of cash now, lower my insurance premiums and lower my fuel bill. I've driven the '11 V6 and while it is "only" 305hp, I think that given my financial circumstances right now I've got to do this.

Alternatively, I've been looking at an '11 Taurus SHO we have that would net nearly the same financial benefit.

Which to buy? The Mustang MCA or the Taurus SHO??? Any of the three I'm looking at are capable of high 13's in the 1/4 mile, so they're sporty enough for my liking. Keeping the '07 GT just isn't in the cards. Here's the three contenders....

DaSFGiants4Life

Very sorry to hear that this economy has hit you and your family hard. Very sad to see that 07 of yours go. But It's just a car, you can always restart and rebuild another one

Being able to proivde for your family with an income and keeping your home is most important. That being said.

I vote for the grabber blue V6

Good luck to you Brain. I hope everything works out for you and your family.

ssimaniac

Sorry to hear about your situation. Hope it all works out for you.

As far as the car goes, if you need a 4 door car than get the Taurus. You get a lot of space and you will utilize much better than with a 2 door. If that isn't a problem, get that gray one. It looks awesome.

All the best

Ivan 5.0

Sorry to hear about your troubles You have any thought of buying mid 90's camry or civic for a few grande to drive around as a beater for a bit?

LEwis26

I'm with Ivan. Don't buy a new car if you're in tough times. It just doesn't make financial sense.

SoFlaBoss

Hey Brian - Sorry that you and your wife need to tighten your belts. I can relate, as I was laid off in 2008 from my job of 25 years, and finally got work two years later. Fortunately my wife stayed employed, but we had to really tighten our belts too, especially with our son in college. Anyhow, you're doing what needs to be done, and you will no doubt survive while things slowly improve. Regarding the car choice, either 2011 MCA would be a great choice. Looks like the Sterling Gray has the rear view camera and the Grabber Blue doesn't. That would be something to consider if you had any plans to later add a pedestal spoiler, but I think you're a spoiler delete kind of guy, so it doesn't matter. Good luck with your final choice.

Our 2011..

slidejob

Hope you & your family come through this quickly.

I'm sure your used car MGR. can hook you up with a deal on a trade in or go to a wholesale auction.

97svtgoin05gt

I'm with Ivan and Lewis. The purchase of a new vehicle during this time of hardship is not a good move. If selling a vehicle is in the cards for you to stay afloat, then by all means do that but don't get yourself roped into a car payment unless absolutely necessary. The situation we find ourselves in right now in America is like nothing I've seen. Both my wife and I are layed off and while we've each had situations during our careers where we've both encountered lay offs, we've never had it where we're both out together not to mention with VERY few prospects. Shes already been out a year. Its only been about a month for me.

If you must, sell your '07 and purchase something for $5k to use until the sun shines again. Once things get back to normal, you can re-evaluate your situation and go from there. New cars are always around.

lodom

What about refinancing the 07 and keeping it? I know it won't free up as much cash, but you could pull some cash out if needed. I don't think you'll be satisifed with the V6 after owning the GT.

YSUsteven

If you are really concerned about your future, look past the stang and SHO to something even cheaper. A fusion for example. You never know if you will need to continue to support your kids post graduation due to the economy, or grad school.

If you can trim a lot now, you should be able to get a new 11 sec car when your finances get back in order instead of paying down debt first.

monkeystash

Of the choices, I like the SG PP. Best overall choice is probably to pay cash for a beater and save the rest. YMMV. Good luck and sorry to hear of your hardships.

stangfoeva

Sorry to hear about whats goin on Brian. Given the circumstances I'd go with the grabber or the SHO.

Itravelalot

Its no shame to not have much money though. If it makes the most financial sense to get a reliable beater for a while, then do it. I have a 1998 Nissan Sentra that has well over 220k miles on it. We bought it a long time ago for $5k and have put on tons of miles on it. Growing up, I never had a new car, only old beaters and hand me downs from the grand parents. They all generally got us all where we needed to go, but not like this Nissan. It looks much older than you would think for a 1998, and it really does not have all that much power, but the engine still starts up better than any of those old 70s and 80s beaters we had. Even back in the 80s, they did not run like this. I am excited to be getting my first new car ever, but even those old cars were fun. They took us all around the country just as good as a new car would have (except for the many times they broke down on us in the middle of nowhere). Get a cheap car that you can beat into the ground and will still run great. They do that now better than they ever have. Sometimes it is what you do with your car that matters more than what car you have. Take a look at that Yugo thread in the Which is better section. No matter what car you get, you can add some mods to it. Maybe I am just too used to the whole fix it with duct tape and superglue mentality, but there is a lot to be said for beaters now days. I have to question the sanity of anyone who does not think the V4 + V8 Yugo is really neat. (not that I would ever tell you to get a Yugo, but it does show what is possible with beaters) Honestly, if I had the time, I would do something like that to my 98 Nissan.

I say go with a beater and be creative (if that is your thing)

Ltngdrvr

Yeah, if you're in financial difficulties, sell the '07, buy something cheap for cash and then no payments, no full coverage insurance and you will be way far ahead money-wise.

JimmyM

Well, what others said. But from reading your post, it doesn't seem as if you're THAT desperate for cash flow that you would prefer a beater. It sounds like you're playing it safe already by trading in your beastly GT, not out of desperation.

That said, both are great cars. Depends on whether you need the practicality of a sedan or not. Out of the two Mustangs, I'd take the GB. A Mustang is a Mustang, even if it's a V6. Look at those wheels on GB, they're awesome:

http://www.youtube.com/watch?v=XKuJEIdS628

OAC_Sparky

This.

I'm sorry to hear about your situation, Brian; but the truth is that even on a trade in value of $22G you've already taken the biggest hit on depreciation on the GT. Next year your car will still be worth $20G and whatever you buy new will lose 1/4 of its value.

Besides, all you're doing is trading equity for debt; which will come back to bite you if things really go south. Instead of owing $8G on a car, you will owe $25G+ on a new car, be locked into payments or worse, be subject to repossesion if you can't make them, destroying a good credit rating in the process.

Your best bet, IMHO is to either:

• ride out the GT's payments to own the car outright (then you've just freed up whatever your monthly payments are AND keep the equity in your car), or;
• get a small personal loan to pay out the GT and pay that loan over a longer time (freeing up the cash difference between the two payments AND keeping the equity in your car) or;
• Sell the car privately, payout the loan, and get a decent used car that you can pay for outright. That will put you free and clear and preserve your credit rating.

Were I in your shoes, as much as it would hurt, would choose option 3. Why? Because the other two options still present a risk to your credit rating. A hit to your credit rating presents more of a financial risk to you than most people realize. The effect it has when trying to negotiate that car loan or mortgage may mean many thousands of dollars when you cannot enotiate the best rate.

Best of luck to you.

neevers1

I agree go #3, and when things turn around, get a mustang then.

Five Oh Brian

Thanks. I think you echoed my feelings in that my '07 is just a car and I can always get something awesome like it again in the future when things are good again.

Guess I gotta start counting votes here at home on online to see which of my three contenders to buy.

Five Oh Brian

Thanks. I don't need a 4 door car - a coupe with 4 seats will work. I included the SHO on my short list as I think it's a cool, fast sedan.

So, 1 vote for the Grabber Blue V6 and 1 vote for the Gray V6.

Five Oh Brian

I can't bring myself to drive around a beater. I have no vices or addictions of any kind, other than I need a quick car. A quick car is my therapy to get through each day.