3.73-11

Brian I really like reading your posts as you have been very helpfull imo to so many on here about the ins&outs of buying a new car. In light of your situation I would suggest if you have the credit available looking at getting a credit card that has a 0% apr intro on balance transfers and transfer your remaining loan onto it. I know you would probally pay the 3% transaction fee but the 0% would more then make up for it if you could say get it for at least 12months? Then your loan would be paid off and if worse comes to worse you can just pay the minimum on the cc if things go south and you wouldn't have to carry as much insurance in the meantime either as once you transfer the balance you would get the title. Just another option to consider maybe with a grain of salt. But a few years ago when things started to go bad and both my wife&I's credit was still over 800 I did it with my mustang since I had paid it down to around 8k and the 12 months at 0% apr really helped us out. As I was able to drop our insurance coverage down get the title and since my apr on the original loan was 6.9% the 3% transfer fee was more then offset by the 0% for 12months. Either way best of luck and one more suggestion would be to remove your s/c swap your rear end&torque convertor. Take that money and pay down the remaining balance&either refinance it or again transfer it to a cc. Of the existing options my vote is for the sterling grey pp first then the grabber blue pp then the sho. After all a mustang is still a mustang
PS. Just my .02c

Five Oh Brian

You're 100% right. We've been trying to eliminate silly little expenses everywhere we can. We pack lunch for work and don't eat out (except for special occasions). We don't smoke. We make our own coffee in the morning (no espresso stands or Starbucks). We don't use drugs. We use coupons for a lot of our shopping. We try to buy stuff when it's on sale if we know we'll need it soon so that we don't have to pay full price later. et Cetera. We sacrifice in many areas already.

My only hobby and vice is having a fast car. I drag race in the summertime at our two local tracks. That's it. I'm a car nut. Always have been, always will be, so I have to have fun car. Nothing flashy - I love the sleeper look - as I don't want attention going down the street.

Five Oh Brian

Well, I sure hope I don't have to get my car totalled to get it paid off. But, I'm glad it worked out in the long run for you. Nothing wrong with an '87 or '88 GT to drive while you waited to get back into a newer Mustang. I owned an '89 5.0L LX brand new for 5 years and it was one of my favorite cars ever.

Five Oh Brian

The good news about the dealer I'm thinking of trading it my GT to is that I work there so I would be doing the paperwork myself. I already know the trade in value and price of the new cars I'm considering, so those numbers can't change in my case.

I would be saving on fuel each month as my '07's stall converter, steep gears, and blower all contribute to lousy fuel economy in my '07 (about 11-12 mpg around town). I rarely drive on the freeway, but get 20-23 mpg on the freeway when I do take longer trips. I figured a new V6 would save me more than $50/month just on fuel and a new 5.0L would save me about $25/month on fuel. Not earth shattering savings, but savings none-the-less. If gas hits $5/gallon this summer like some predict, then I figure I'd save $50/month with a new 5.0L or $80/month with a new V6 based on the miles I'm averaging now.

Five Oh Brian

If I bought the $25K V6, you're correct that I saddle myself with more debt ($11K instead of the $8K I owe now). However, here's the benefits...

• Much lower monthly payment (or I can pocket the equity to pay down other debts I currently have).
• Much better fuel economy (I figure I'll save $50/month or more).
• Lower insurance premiums (V6 vs GT).
• New car under full factory warranty (my '07 is out of warranty from time & mods, even though it has just 28K miles on the odometer).
• New car would need less maintenance (my '07 needs spark plugs 2-3 times per year, tranny flushes yearly, and more frequent oil changes due to the supercharger being fed from the oil pan).

The new 5.0L that's arriving at our dealership soon is only about $3K more than the V6 MCA, so it wouldn't save me as much money as the V6, but would still save me a fair amount per month.

I've ruled out the Taurus SHO, by the way, as it's a $40K plus rig (it's loaded up). So, while I could lease it super cheap right now, the residual is so high that I'd end up just turning it in at lease end and have no equity. Plus, I'm a Mustang guy and "need" to have a Mustang to keep my sanity.

Five Oh Brian

Tony, you are wise, indeed. I have been thinking of all those things. In fact, I built a spreadsheet yesterday to show my wife that included current and projected payments for each contender over the next 6 years, along with fuel, insurance, and maintenance implications, as well as the equity I could have now by trading. This showed my cost of driving each vehicle over the next 6 years. It's amazing what you learn when you see it in writing!

Buying the new '11 GT 300A would cost me roughly $18,500 over the next 6 years (using my equity in the '07).

Buying the new '11 V6 MCA would cost me roughly $8,000 over the next 6 years (using my equity in the '07).

Keeping my '07 GT would cost me roughly $10,500 over the next 6 years (and that's assuming that I only have $2K in out-of-pocket repairs as there's no warranty left). Even if nothing breaks, the maintenance expense is much higher on a 4 year old modded car than a new car that's left stock.

So, getting the '11 V6 MCA is actually my cheapest option (unless I cash out my '07 and buy a beater outright). Not sure if I will enjoy the lack of low end torque and having to rev to 7K rpm's to get into the powerband, but I'm going to test drive it again to see.

If I buy the V6 MCA, I'd likely hang onto it until my finances are strong enough to justify another car swap. Or, I could always add a Procharger blower to the V6 someday (they're advertising 475 flywheel hp!). The MCA with Perf Pkg has everything my '07 has inside (actually it has more stuff), handles better, rides as well, etc. It's just 2 seconds slower in the 1/4 mile and about 3 seconds slower from 0-100 mph. I like the looks of the MCA/PP package better than the GT, so that's a plus.

Arghh! I hate making decisions like this. That's why I'm so glad to have you guys to help.

Five Oh Brian

Great advice! My current loan is at 6.49% (I was rebuilding my credit 4 years ago when I bought my '07). Now my wife & I have great credit scores (750+) so it would be easy to get a cheap credit card and payoff the car as you suggest. I don't like revolving debt, since an installment loan has a fixed end date, but it might be a good short-term solution.

I wouldn't lower my insurance coverage, though. I learned the hard way once upon a time. When I paid off my '89 5.0L LX early back in 1993, I dropped full coverage insurance and just kept liability. I'd never had an accident and "knew" I was too good a driver to need full coverage. A few months later I caused a bad accident through my own stupidity and while the car I hit was covered, my 5.0L was totalled with no coverage! I have had full coverage on everything vehicle I've ever owned since then - even those that are paid off.

Norberd

Welcome to Canada eh.

Five Oh Brian

I was in Holland/Germany two years ago and gas was $9/gallon. $5/gallon doesn't sound too bad by comparison, but gotta love the cheap gas here in the USA. I think gas is still under a buck a gallon in Venezuela, but too dangerous to want to live there.

madV6

I might be a little biased but I love the SG PP

I have two low 11 second drag vehicles that are just ridiculous on the street though street legal (For Sale if anyone is interested?) The V6 PP gets me close to that feeling of power with a little forced restraint, but I have only been averaging 19 MPG and had hoped for more. Guess it's the short commute - 10 miles.

Needless to say you have a hard decision to make and I feel you on all levels. Too many of us in a similar boat.

Probably see you at the track sometime this summer!

Best of luck

Five Oh Brian

Josh, nice to see a local on board here! I run at Pacific Raceways and Bremerton Raceway in the summertime, so I'm sure I'll see you out racing. What do you run at the tracks? You'll see me with either my alloy gray '07 GT or with the sterling gray '11 V6 MCA/PP if I end up buying it. I've got drag radials that fit either car, so I'm ready to race either way.

Tony Alonso

Awesome financial analysis! So now my dialog would be as follows -

1) is the $10000 savings going to offset the loss of 'seat-of-the-pants' feel AND the V8 sound?
2) if I modify the V6 engine, by how much are my savings reduced?
3) am I mainly enjoying the car drag racing, street driving, or corner carving?
4) how much do I like Sterling vs alloy grey color? How big of a role does color play in my decision?

My vote would be to get and enjoy the stripped '11 GT over the V6 PP, assuming you want to trade the '07 GT.

I can honestly say I enjoy the heck out of my '10 GT as a commuter with decent power. The sound makes a huge difference to me in the ownership experience. If I didn't have a supercharged '01 Bullitt, I probably would miss the power of the 5.0L much more.

Bert

I'm sorry, and I apologize ahead of time for saying so, but I am confused . . . in the words of Cheech and Chong, "honorable general sir, are you out of your f'ing mind?"

Since when do "times are tough, my wife lost her job, we are going to get a new car" go in the same sentence?

If you are really financially motivated, sell the mustang, pocket the cash, buy a used 4-door civic or carolla, wait until things turn around to think about buying any kind of new car or taking on any new debt.

sorry for being a kill-joy, just my honest opinion . . .

Tony Alonso

In post 1, he mentions that both his wife and him are working but their income level was reduced. In post 33, it is mentioned that the thinking is that he is being very conservative.

I believe that is why the conversation thread is continuing as it is.

cdynaco

America! Vhat a Country!

Its surprising what one can do when there are options. And sometimes taking on more debt is advantageous to assist the real crux of the matter - monthly cash flow. That applies to both families and businesses. Most American's assets are tied up in homes & 401k/IRA's - both of which can and do fluctuate in value as they plod forward in a steady (though uneven) long term climb above inflation. Better to borrow from others (if the rate is good), and let those assets work their way forward, than to sell out now where most would turn a paper loss into a real loss.

Look at Ford - took on massive debt while they were still in a relative position of strength, so as to invest in a major realignment due to coming circumstances. They borrowed relatively cheaply, set it aside for both reserves and investment, and when things turn around they pay down huge chunks.

In the 80's when I had a good career but wanted to try my own business, I borrowed to the hilt before I left my job. Gave me enough reserves at a cheap rate to get through the first few years of building a business - though many would say you shouldn't borrow when you are quitting your day job.

Went through a very difficult 5 yr period recently but due to good credit I borrowed big chunks on 0 (+3% fee), 2.9 & 3.9 fixed c.cards. It not only helped monthly cash flow during those years, but I went ahead and built a home - in spite of the headwinds - because the window of opportunity flew open. Then as the difficulty wound down, I locked in a record low 4.75% mortgage because there was an asset standing that the bank could touch, feel, and appraise. Even now I carry $35k on cheap 2.9/3.9 fixed cards (down from $87k in 08), plus a '10 car loan at 3.24%. While that shocks many people, I banked the reserves and my net interest rate on cards is about 1%. When you count inflation, that balance costs me nothing as I steadily pay it down while letting my home & IRA rebound.

Jim Croce wasn't always right. Sometimes you do spit into the wind. Sometimes it makes sense to borrow... believe me, I know! lol

Thomas S

Interesting thread! I'm really curious as to what you'll end up doing seeing as how I'm in a similar situation. I have an 06 GT that I financed through Ford for 0%. My wife and I are both making less money now. I really want a new 5.0. I have equity in my car and qualify for the X-plan and I think I could get a stripped 5.0 with Brembos and 3.73s for about the same payments that I have now but of course the payments would be extended.

I'd love to get 0% financing again but I don't see that happening any time soon since the new Mustangs are so hot. Anyways, good luck on your decision Brian! I can't give you any advice because I am just as torn and confused as you are! Maybe even more so!

madV6

I live in Poulsbo so I pretty much exclusively go to Bremerton. Hope to get the Mustang out at least once this summer (JLT CAI on order and then a tune soon to follow). I raced my 99 Dakota for about 7 years pretty much every weekend. It was running mid 11's all motor (secret recipe) now in the back to stock (more or less) process and selling the parts off it. Also For Sale whole is my 68 Plymouth Valiant. Ive got it on Craigslist and a couple Mopar boards but everyone low ***** me on it. Best run is 11.007 due to the tiny carb it is sporting. Ill take it out once for the mopar drags this year if no one buys it from me. We have a 5 yro and 1.5 yro so the last few years just havent had much time nor $$ due to pretty much same issues your dealing with.
Want to buy a sweet Valiant?

http://www.youtube.com/watch?v=Md6X5tRokw4

Dave07997S

Brian,

Sorry to hear whats going on...I too have been greatly affected with the economy. My wife was a stay home mom for nearly 7 years, which was a source of pride for me especially living in West Los Angeles where the cost of living is much higher than the rest of the country. Whats funny is making 100k a year is really just middle class out here. I am in the Real Estate field and as you know the last 3 years have been brutal. My income is a 1/3 of what it was and my wife had to go back to work...as a waitress. She couldn't find work in the travel industry in which she worked before we had children.

I too am like you in which my only vice was I need to have something I enjoy driving. I bought the 997S in March 07 just 6 months before the mortgage meltdown. The E92 M3 was really a step down as I had 2 cars, a 328i for a DD and the 997 for a weekend toy. I got rid of both and now just keep the M3 for a DD and in the process saved over $1000 a month in car payments. However, even now I question what a big mistake getting the M3 could have been and I too am looking at maybe getting a V6 Mustang to tide me over and really just concentrate on rebuilding my life (financial) and be done with expensive cars and move on with a much more simple way of life.

Keep your chin up, what doesn't kill us will make us stronger and I hope for the best for you.

Dave

Adam

If times are tough I wouldn't take on additional debt. Just my 2 cents.

King Taco

I'm with this guy.

Good luck though man.