Financial Advice. Should I buy this car?

Status
Not open for further replies.
Joined
Apr 7, 2010
Messages
913
Location
Miami
Hello everyone. I am considering buying a 2003 Mustang. But I am not sure if I should or not. The main question being finances. Currently I've got a 1999 Toyota Solara with 210k miles. It is my DD. It is not in great shape. I bought it 3 years ago for $1700 but had to sink 3k into it for various repairs. I don't like the car. The transmission is worn, grinding if I shift hard. It vibrates when I hit freeway speeds and is cosmetically ugly. I want to get a car for 2 reasons. I want a car I actually like, and I am nervous about the Solara breaking down.

Enter Mustang.

It seems like a great deal to me $5800 with only 61k miles. Supposedly driven by a woman (not boy racer) and garaged most it's life. It's the GT with the V8.

Here's my financial situation. I've got a little less than 10k total cash. I make about 75 grand a year (before taxes). I have no debt except mortgage debt. I am not a great saver lol. I like to go on expensive vacations. I'm 30, so not too close to retirement. My plan is actually to buy the mustang, but not insure it. I want to use it as my DD once the Solara goes Kaput. That way I don't have to scramble around for a replacement once the Solara breaks down, which is what I'm worried about. What are your thoughts guys? Should I pull the trigger or continue saving?

https://www.autotrader.com/cars-for-sale/vehicledetails.xhtml?listingId=512727700&zip=48334&referrer=%2Fcars-for-sale%2Fsearchresults.xhtml%3Fzip%3D48334%26startYear%3D2000%26incremental%3Dall%26endYear%3D2004%26modelCodeList%3DMUST%26makeCodeList%3DFORD%26transmissionCodes%3DMAN%26sortBy%3DdistanceASC%26maxPrice%3D6000%26engineCodes%3D8CLDR%26firstRecord%3D0%26marketExtension%3Don%26searchRadius%3D0&startYear=2000&numRecords=25&maxPrice=6000&firstRecord=0&endYear=2004&modelCodeList=MUST&makeCodeList=FORD&searchRadius=0&makeCode1=FORD&modelCode1=MUST&clickType=listing
 
My son's Mustang was really bad on snowy roads. Maybe some weight in the trunk and proper tires might help.
 
Keep saving for something better. Drive the Solara until it blows or the A/C stops working.

I'm in the same boat, my car is falling apart and has transmission issues. I'd rather drive that until it breaks, and get something respectable than buy another cheap car that won't be worth fixing in a few years.
 
When you say "not insure" do you mean, "no insurance but I'll drive it" or "no collision just liability" or "will park in my garage until my Solara dies, then I'll get reg&ins and drive the 'stang". ?

If you have a mortgage but less than $10k in cash I'm not sure you are in great spot to buy another car. I mean a house can suddenly have $$$$ repairs (friends had their well pump quit a year or two ago, that was a $4k bill). But I can understand the need for a reliable car, and it sounds like this current one is not far from the end.

Personally I wouldn't do a Mustang, partly because I don't like Fords, partly because I don't see its utility as a DD (moving groceries, driving in snow, moving boxes of stuff around, so forth). Partly because of insurance, although at my age it probably is cheap. I didn't click on your link but if it's a reliable year of Mustang, with cheap repairs, and in good shape, well, ya live only once. I can think of worse decisions you could make *cough 84 month loans cough*. I'd give thought to keeping the Solara around and then driving both, alternating miles between them, repairing either as necessary, until the Solara has "the big one" and needs to go bye-bye.
 
Everything about the Mustang will be more expensive. First cost, gas, insurance, tires, brakes, etc.
 
You need a reliable daily driver. A 16 year old V8 car does not fall into that equation. Sounds like you want a fun weekend car.

Trade the Solara in for a gently used 2012-2016 car. With the trade, and your cash down, you should be able to find something close or with a few thousand dollar car payment that you can pay off in 12 months.

And no insurance?? W T F? That's illegal in most of the US, and it sets you up for huge financial liability should you injure someone or damage their property. Insurance should be budgeted for.

And start saving. Does your company offer a 401K? Do they do matching investments? If you dont take at least the company match, you are losing large sums of free money. At your age I had $250K in retirement accounts, maybe more. I'll have 1.2 to 1.4 million dollars in a retirement account at age 55. Started saving early. You don't notice the money is gone (being invested) if you learn to live within your means.
 
I would look at what new car you can finance over a 3 yr term ($500/mo). Perhaps a new Toyota Corolla or a Kia/Hundai? I would not sink any money into a 15 yr old vehicle let alone one with a V8.
 
Originally Posted by BMWTurboDzl
I would look at what new car you can finance over a 3 yr term ($500/mo).

Personally I'd go for 4-5 years, new car will be good for that duration, and if it's a low APR then it won't cost that much more than a shorter term.

Plus I'd rather be able to pay extra when I can, and then not when I can't, and pay off a 5 year loan in 3 years. Everything is a risk but I prefer longer term. More flexibility in the future, which no one can predict real well.

I wonder if you can get under $500/month. Maybe not--been too long since I shopped--I thought it was bad when I had my truck at $333/month. A quick look at a calculator shows 5yr 3% APR on a 20k loan is still $360/month.
 
As one of the posters stated, you need a reliable car. See if you can afford the financing on a bland appliance type sedan (thinking of something like a corrolla, mazda 3, etc.) of only a few years old. Drive that until you can afford something more to your liking.

Jumping into another old car is gone cause your wallet to hurt, you don't want to have to dump $3K into an old car to get back and forth to work.
 
If you want a reliable DD, buy a Camry. Not a Mustang.

Unless you lived next door to the lady with the Mustang and saw only her drive it, I would not believe anything people told me about a car. Unless I saw paperwork, Storing in a garage if heated can be worse for rust than the cold outside.

iMy 1965 & 1969 Mustang both sucked in the snow and a 2017 Mustang someone rented got stuck in my drive in just a little snow.
 
Last edited:
The good news: Mustangs parts are plentiful, can be found cheaply and you could maintain a "no rust" Mustang forever. "IF" that's your thing.

The bad news: Mustangs of that vintage are not great cars. They rust, they have flexible chassis, they have poor quality suspension components and are generally not considered reliable.

If I were to guess, I'd say the Mustang will be a money pit, and will never be the caliber of car that the same overall investment (purchase, upgrades and repairs) would purchase. You could easily sink $10K into it and still have a 18 year old Mustang that is no faster or better handling than a V6 Camry.

However, it may have been well maintained, have no hidden rust and so on. Have no way to tell from here. Remember, most older cars often have corroded brake calipers and master cylinders, faulty heater cores and radiators, worn water pumps, alternator issues and so on. Expect to replace them.
 
Last edited:
Focus on building wealth at this point in your life. Best advice was given: get a 2012-13 reliable DD like Accord/Camry with low 100s on the clock. There will be plenty of these V8 toys when you have your mid life crisis and have dineros in the bank.
smirk.gif
 
Not a lot of $$ to roll the dice. Id be wary though V8 stangs sell fast regardless.

Also, insure the thing. Comprehensive. ( fire theft acts of g-d)

I'm afaid you are going to drive it and crash it when its not insured,

The 4th gen drove better than the 5th gen "pig" IMHO.

I sill think they are junk cars. Ive owned four modern 'stnag GT through the years - from an '82 through a 2001 Bullitt.

I think the 82 was the most honest. Anyone recall Ford P- metric wheels? 390MM?
 
Originally Posted by WagonWheel
Focus on building wealth at this point in your life. Best advice was given: get a 2012-13 reliable DD like Accord/Camry with low 100s on the clock. There will be plenty of these V8 toys when you have your mid life crisis and have dineros in the bank.
smirk.gif




I'm an old guy and I agree completely. Let me add that this car IS NOT special and you do not need to purchase this exact one. There are millions of other choices, some of which will be better.

However, life is short and it's my opinion that A) you need a reliable car B) good choices can include cars you like. The two are not mutually exclusive. If you hate driving a Camry (I do) then why purchase one?

From the time I graduated HS, as I am a driving enthusiast, I always had a vehicle I enjoyed. Not one of them was expensive or wasteful. All of them were fun.

For financial advice: Dave Ramsey.
 
Originally Posted by WagonWheel
Focus on building wealth at this point in your life. Best advice was given: get a 2012-13 reliable DD like Accord/Camry with low 100s on the clock. There will be plenty of these V8 toys when you have your mid life crisis and have dineros in the bank.
smirk.gif



Amen!
 
Oh dont wait to have fun but save too.

I'm in my mid 60's and I'm a Millionare but I cant enjoy it due to dulled senses.

I will say I think My current Jetta lease is faster than the '82 Mustang H.O.

139 a month. Cheap. All maint and wear items ( minus tires) included.
 
There is a common rule of thumb called the 20/4/10 rule that was used to estimate auto-ownership affordability. That means making a 20 percent down payment, taking out a four-year loan, and devoting no more than 10 percent of your gross income each year to the loan, including car insurance.
 
Originally Posted by wemay
Originally Posted by WagonWheel
Focus on building wealth at this point in your life. Best advice was given: get a 2012-13 reliable DD like Accord/Camry with low 100s on the clock. There will be plenty of these V8 toys when you have your mid life crisis and have dineros in the bank.
smirk.gif



Amen!


Agree with this. When you get to my age, which is in my 70's, you will be glad you did.
 
Kurtatron: Being 30-year old, no debt except mortgage, $10k in cash, you aren't doing too bad. You just have to start saving. My 2 cent is buying a 16 year old Mustang is not a smart buy especially to use as your daily driver. Drive the Solara until it dies, only speinding money for maintenance items (oili change, tires, brakes, battery, etc). Anything else, NO! In the meantime, you have to develop a financial plan. You're in good shape now but you have to start thinking 10-, 20, 40- years down the road.

Sit down over the weekend and make a budget. List your expenses and find out how much money you actually have each month to save or spend. You like going on vacations, save a certain amount each paycheck or month for that vacation. Put aside 10% for a retirement account. Put a certain portion into saving. The important thing is to know each month where your money is going so you can pay yourself first.

Back to the car. You really need a reliable daily driver. There are a lot of 2- and 3- year old off-lease midsize cars that you can payoff in 2 or 3 years and enjoy for additional 4 or 5 years with minimal repair costs. If you're driving a 1999 Solara now, a 2016 Camry will feel like a race car. It's reliable and cheap to maintain. You can probably get one for about $15k. Based on your budget, find out what you want your monthly payment to be. This will determine how much money you should put down. Try to do a 2 or 3 year loan.

Basically, you have to start being deliberate (anal) about your money. Budgeting will help you start saving. You cna set up different accounts for vacation, savings, checking, Roth IRA. Direct your paycheck accordingly based on what your budget reveals. It's not hard, you have to be disciplined. Take advantage of the position you're in (no debt). It gives you control of your life. Don't waste it.

Good luck.
 
Status
Not open for further replies.
Back
Top