Dilemma = Should I get a 2015 Mustang?

Hey guys and gals! I am a huge fan of the 2015 Mustang-- Oh my God, every time I see one on the highway I just salivate. :shocked:

So here is my story: I have a 2012 Kia Soul (mother financed it for me as my first car back in 2012) and I still owe $8,000 left on it, however, I do have positive equity in the car. I am thinking about trading it in and getting a 2015 Ford Mustang Auto V6. I just want to know if it would be a smart decision and not a financial catastrophe, lol.

Here is some little background about me: I am 19 years old. I make around $650-700 a month with a stable job, but I don't have any bills to pay other than my current vehicle at $235 a month. My mother covers my insurance for me and would do so if I got the 'Stang. She also will co-sign for me if I decided to trade in my Soul. Man, she's a good mom and I am so grateful I have her.

I would like to put down about $5,000 on the Mustang that's probably going to be $26,500-something after dealer fees, sales tax, etc. The monthly payments look manageable for 72 months.

HOWEVER, I am just stomped over what decision I should make: Get a 2015 Mustang because I am a young car-obsessed freak that likes to roll in style and love every mile of it or maybe be financially smart and just keep my Soul for another couple of years...? I would like to keep my Soul AND get the 'Stang, but the payment would be much higher if I rolled my current loan on the new one. I love my Soul as it is my first car and it tears me up inside to think about trading it in. Does anyone else understand my extreme infatuation with this 2015 pony and thinks it's possibly worth it?

If so, what about leasing as another option to consider?

Thank you all VERY much as any advice is greatly appreciated here!
Happy driving!

Whether or not it's a financial catastrophe depends on a few things...

• can you get a low interest rate...like 2.3% or less
• are you ok with depreciation? Only really special edition Mustangs hold their value.

At your income level I'd personally wait until you make a bit more.

My questions:
-have you maxed out your 401k?
-are you investing in a Roth IRA at the maximum?

Do those first before spending a bunch of money on a new car.

You will thank me later.

No, don't get a new car. Keep the car that you have and wait unit you have a higher paying job. You are 19 and only make $650 to $700 a month. That is not much at all. I went down this path at your age. I didn't make much but financed everything. It is a huge mistake. It took be several years to crawl out of that mess. 14 years later and I can buy anything that I want with cash. Just wait until you are making more money.

IndustryLeech said:

Whether or not it's a financial catastrophe depends on a few things...

• can you get a low interest rate...like 2.3% or less
• are you ok with depreciation? Only really special edition Mustangs hold their value.

At your income level I'd personally wait until you make a bit more.

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Well back in 2012, my mother was quoted 5.09% APR on the Soul. However, I totally think she could have done better because what happen was we went straight to the dealership and looked at financing options (and you know how they like to "jack" up the APR's). This time I am thinking she see what a credit union or bank online can quote her before (IF) we go.

My credit is awesome (scores above 720s on all three bureaus) with three credit cards. HOWEVER, my credit history is only of 7 months.. So I would probably get a terribly high APR due to my "lack of loan history."

Depreciation is not a problem at all as I know I am going to be keeping this car for over 6+ years.

I appreciate it, folks! It may not be what I want to hear, but there are some very logical points.

If you really want a Mustang, look into buying a 2011 or later used. If you're patient you can probably find a great deal on one.

No way on Earth should be buying a new car on $700/month income. Save your money,go to college, get a job that pays $15,000/month and buy a GT 350.

The smart thing would be to get a degree and a good job. $700 a month isnt even enough to live on your own, yet consider getting a new car.

I would personally argue that a degree isn't right for everybody, isn't absolutely necessary for a good job, and for some it's just another way to accrue debt.

JessV, are you in college? My recommendation and something that I tell my boys all the time is "college or military". However, I will never co-sign on a car for my kids. If anything I will help them buy Realestate at your age.

You cannot afford a 2015 Mustang. Do not buy.

There is a difference between affording a car and affording a car.

I have about $6,000 currently in savings and people always ask me, "How come you hardly spend money? What are you saving up for so much?"

My response is: "Good question."

evo8904 said:

JessV, are you in college? My recommendation and something that I tell my boys all the time is "college or military". However, I will never co-sign on a car for my kids. If anything I will help them buy Realestate at your age.

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I'm starting my first year of state college this August.

IndustryLeech said:

I would personally argue that a degree isn't right for everybody, isn't absolutely necessary for a good job, and for some it's just another way to accrue debt.

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Would also agree.Some do quite well without a degree. Either way work for a promotion or a higher paying job through schooling or good ol fashion hard work. You'll enjoy the car alot more when you can truly afford it.