Financial Advice. Should I buy this car?

[andyd]

I was cash poor after buying a house and then the kids came. 30s are like that. How kids do it these days is beyond me. A 16 yr old car with only 65K miles is gonna have garage queen-itus. Sitting is the worst thing for a car. If you buy this car to daily drive, it will be a money pit. You be working parts that have developed a "set" from sitting. Rust, wiring tarnish, plastic shrinking and getting brittle, grease turning into soap, oxidation,mice.

 

[wtd]

If you want a Mustang, I don't think the one you are considering is a bad deal, especially with low miles. You just need to go look at it and drive it.

I'm not going to try and talk you into some of the types of cars that have been suggested. I'm a car enthusiast and I wouldn't consider any of those as my only vehicle. I like having something fun to drive occasionally and is why I bought my Mustang and have kept my Big Block Monte Carlo.

I only still drive my 92 Cavalier because of the gas mileage and to take places where I don't care if it gets door dinged or damaged. It's not that fun to drive or looks that great.

You make more money than I did most years, have more money in the bank than I ever did when I bought all of my new vehicles, and have less debt than I did at the time and I was able to afford a new vehicle several times with no problems so I wouldn't worry about that.

I will agree with the others that you should be funding a retirement plan of some sort if you are not already doing so.

 

[dave1251]

If you don't have insurance get it. It sounds like you can afford a nice new or near new ride with warranty without any risk to your life style. Finance a vehicle you like and one you will have no issues keeping for a decade for the amount you save each month for your vehicle purchase. After you purchase take 5 of your 10K and make a payment after this your few years of payments will be at or near 100% of principal.

You will then have great credit no debt and no worries about a broken down car.

 

[Ws6]

Mustangs of that year are hammer and anvil simple and parts are readily available. If you like it, buy it, if you're iffy, well, dont put yourself out over iffy, and keep saving.

 

[Kurtatron]

Yes. I think I will save some more before getting the mustang. Other thing is it's 4 hours away. But I really do want this gen of mustang, regardless what people are saying.

 

[Andrew1972]

Was the $3000 you spent fixing/maintaining your current car impactful to your financial situation? If a sting but not really you can afford this car.

If impactful you can't afford this mustang nor a financed car(do not recommend) people suggest until you adjust your budget/lifestyle.

 

[ARCOgraphite]

Originally Posted by Kurtatron
Yes. I think I will save some more before getting the mustang. Other thing is it's 4 hours away. But I really do want this gen of mustang, regardless what people are saying.
Go check it out no harm there. You may find its not that great then story end ... for now

Live life, you can take $$ with you!

 

[DuckRyder]

I don't think this car would be a terrible buy...

That Mustang is not a very complicated car, parts and information to address any problems are readily available.

I would ditch the Toyota while it still runs and replace it something more trust worthy.

I think that balance is the key, you do need to plan for your retirement and save money, but you shouldn't have to live like a pauper in the present. Maybe one less "expensive vacation" in return for a reliable mode of transport.

I also don't subscribe to the notion that a reasonable dept incurred for transportation is necessarily horrible... The trap is when people continually pull equity out of a home or roll negative equity from one car to the next.

 

[GMFan]

Do not buy this car. You make a decent income, but you aren't being very good with your money. You need 3-6 month emergency fund. Your $10k in the bank is the absolute bare minimum if you can live off $10k for 3 months. However, any cash you spend on a car would eat away your emergency fund. You cannot afford to buy a new car without financially compromising yourself. You should have been planning/saving ahead of time for the past couple of years knowing you would need to replace your old vehicle.

I follow the advice of financial samurai, and that is to pay only cash for a vehicle, and the cost of the vehicle should not exceed 10% of your gross income, or 5% of your net worth (whichever is greater). I realize this is "extreme" to most people, but most people are broke.

Dave Ramsey's advice is less stringent, he recommends that the total value of all vehicles in your household (or anything with an engine including boats/ATV/lawnmower etc). is no greater than 50% of your take home pay. He says you must be able to pay cash for the vehicle (which I absolutely agree with). You would need to be able to do this, while also not tapping into your emergency fund.

Avoid any form of debt like the plague it is, except a reasonable/affordable home mortgage. I applaud you on being debt-free. You're ahead of the game, but don't give in to debt.

You should be able to save $7,500 in 3-6 months if you budget. Then you can go buy the car.

 

[Ws6]

Originally Posted by Kurtatron
Yes. I think I will save some more before getting the mustang. Other thing is it's 4 hours away. But I really do want this gen of mustang, regardless what people are saying.


Why? Emotional reasons? They were slow, handled poorly, and really have nothing to recommend them aside from sounding really really good. That said, if it's a childhood dream type thing, this sounds like a great deal!

 

[Kurtatron]

I like the body styling. I think they look much better than the 94-98 and the 2005+ models. I cannot afford the 2014+ which I do think look great. I want the V8 power and sound for 6-8k. Maybe I'll get one for my 31st birthday.

As a side note, I did get this guy for my 30th birthday, which was a month ago.

 

[Ws6]

Originally Posted by Kurtatron
I like the body styling. I think they look much better than the 94-98 and the 2005+ models. I cannot afford the 2014+ which I do think look great. I want the V8 power and sound for 6-8k. Maybe I'll get one for my 31st birthday.

As a side note, I did get this guy for my 30th birthday, which was a month ago.


Makes sense. Have you considered an LS1 Fbody? Much better performance, similar price tag.

 

[dishdude]

Originally Posted by Kurtatron
I like the body styling. I think they look much better than the 94-98 and the 2005+ models. I cannot afford the 2014+ which I do think look great. I want the V8 power and sound for 6-8k. Maybe I'll get one for my 31st birthday.

As a side note, I did get this guy for my 30th birthday, which was a month ago.



A Samoyed?

 

[01rangerxl]

Probably shouldn't put "financial advice" in the title of a thread about considering an old Mustang on BITOG. That's asking for hand wringing.

I say why the [censored] not? I've known plenty of people who commute in them and treat them like any other car. Do insure it if you are driving it though. Not doing so is Russian roulette. I drive nothing but old Ford trucks, but registration/insurance is always up to date. Not having it can be disastrous.