Buyers remorse...2015 v6 mustang

[madweazl]

Prices ranged from $100-150 down here for most shops so I imagine it would be similar.

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[Glenn G]

Keep the V6 and when you have the money go for an SC like this one
AM Supercharger
it's for the 14 but I am sure the 15 kit is probably 99% the same.
You'll be putting down around GT with full bolt-ons power and not dig yourself anywhere as deep into debt.

 

[longislander]

When inflation impacts us, prices across the board usually rise. People who are locked into a loan can see their budget squeezed. Suddenly their dollar doesn't go as far. If your salary doesn't adjust, or you are on a fixed income, this makes things rough. Some people are forced to eat out less, invest less, move to different properties, refinance, sell their cars, etc. When you are free and clear of loans you aren't as susceptible to financial winds of change. You also have a built-in safety net with full equity in what you own.

The time value of money is still there when you pay up front. Remember, you are seeing returns while you save up for your purchase(s). Paying cash for a car is a conservative way of going about business, but you are not losing money on the purchase. It's simply a matter of a bird in the hand is worth more than two in the bush.

Prices rise, but your loan is fixed at 2015 prices. Meanwhile instead of being tied up in a car, your money is invested at higher, inflation-adjusted yields. That's what the time value of money means.

 

[longislander]

Hey Longislander, in what part of LI are you staying ?
I'm gonna be there this August, and I'm having my roush axle backs delivered to my cousin's there (in Deer Park) cause it's saving me a good chunk of money vs. buying it here in Cabada, so I was wondering depending on where you live, if you'd have a good place to recommend to get em installed.
Thanks

I don't even have a Mustang-my son does and I'm so head-over-heels in love with it that I joined the forum. Glad Angelo could offer some advice!

 

[thehunterooo]

Keep it OP, it has been said on here by several members that the V6 may appreciate in value.

 

[MagneticA]

Prices rise, but your loan is fixed at 2015 prices. Meanwhile instead of being tied up in a car, your money is invested at higher, inflation-adjusted yields. That's what the time value of money means.

I get the inflation-adjusted yields and compounding interest, which is what I was referring to receiving prior to paying upfront. That 30k was seeing positive returns for 5+ years before being spent on the car. Now, that money could be kept in the investments and hopefully continue to grow, sure. But at some point you have to cash your chips and pay the 30k... today or tomorrow.

Personally I don't want to over borrow money just for the sake of investing. It can expose you. It increases your liabilities and takes away your purchasing power, not to mention that it adds stress and isn't always going to give you a positive return. So I look at this as separate money - money that I spend and money that I invest. Car money is money I spend, but at the same time I do it without taking unnecessary losses. My investing portfolio is a one-way street: money only goes in, and it already encompasses 15% of my income.

Many people take out loans, like I mentioned earlier, simply because they cannot afford to pay cash. There's nothing wrong with that, up to a point. The danger in credit is that many creditors allow you more credit than is truly feasible for your budget. Many Americans today have built themselves a financial house of cards because of their dependence on other people's money. But if they adjusted their views on money only slightly, they would know what they can afford, wouldn't be in debt to others, and would actually save money... which is different than investing money... but opens up a lot of investment opportunities.

 

[Asharus]

How much did they charge you for that if you do remember ? (Even though axle back should be cheaper I guess)
Yeah, don't think I'll tune mine either or anything, but you never know with these places lol

Prices ranged from $100-150 down here for most shops so I imagine it would be similar.

yep, $150. it was a little more than what a muffler shop would charge for a catback install, but i'd rather have a tech that works on mustangs all day to install it, even though its only like 8 bolts, LOL.

Keep the V6 and when you have the money go for an SC like this one
AM Supercharger
it's for the 14 but I am sure the 15 kit is probably 99% the same.
You'll be putting down around GT with bolt full bolt ons power and not dig yourself anywhere as deep into debt.

modding the car would just sink him deeper in debt, it adds no value to his car.

Prices rise, but your loan is fixed at 2015 prices. Meanwhile instead of being tied up in a car, your money is invested at higher, inflation-adjusted yields. That's what the time value of money means.

I get the inflation-adjusted yields and compounding interest, which is what I was referring to receiving prior to paying upfront. That 30k was seeing positive returns for 5+ years before being spent on the car. Now, that money could be kept in the investments and hopefully continue to grow, sure. But at some point you have to cash your chips and pay the 30k... today or tomorrow.

Personally I don't want to over borrow money just for the sake of investing. It can expose you. It increases your liabilities and takes away your purchasing power, not to mention that it adds stress and isn't always going to give you a positive return. So I look at this as separate money - money that I spend and money that I invest. Car money is money I spend, but at the same time I do it without taking unnecessary losses. My investing portfolio is a one-way street: money only goes in, and it already encompasses 15% of my income.

Many people take out loans, like I mentioned earlier, simply because they cannot afford to pay cash. There's nothing wrong with that, up to a point. The danger in credit is that many creditors allow you more credit than is truly feasible for your budget. Many Americans today have built themselves a financial house of cards because of their dependence on other people's money. But if they adjusted their views on money only slightly, they would know what they can afford, wouldn't be in debt to others, and would actually save money... which is different than investing money... but opens up a lot of investment opportunities.

i could pay for my car in full right now, but i'd rather have that 29k in my roth IRAs and my barclays savings account (currently 1% apy). 2% interest auto loan is what, no more than $1500 over 5 years?

 

[madweazl]

At least go CDs over the savings account. Still easy access to the funds if the proverbial crap hits the fan but you can easily double the yield. Savings make banks money.

 

[MagneticA]

i could pay for my car in full right now, but i'd rather have that 29k in my roth IRAs and my barclays savings account (currently 1% apy). 2% interest auto loan is what, no more than $1500 over 5 years?

Good choice. Not wise withdrawing from a retirement account or rainy day fund to buy a car.

 

[Asharus]

At least go CDs over the savings account. Still easy access to the funds if the proverbial crap hits the fan but you can easily double the yield. Savings make banks money.

the CDs are marginally more than the 1% APY on barclays. i was thinking about laddering CDs, but i'd rather throw whatever i have in excess of 20k in a mutual fund. this one in particular https://personal.vanguard.com/us/funds/snapshot?FundId=0540&FundIntExt=INT

 

[Old 5 Oh]

You are in a bad place with no good way out except forward. Had you decided to have a V8, you would be looking at well over $40k of payments. Be happy it's only $30K.

Make double payments. Make triple payments. Your goal is positive equity. Nothing else.

Enjoy a really nice V6 Mustang along the way. Don't let the woulda/couldas get in the way.

 

[mikeyjobu]

I'll just say a few more things:
This is a Mustang forum - not a financial advice forum.
This is not the first post asking for financial advice, seemingly hoping to gain support for a"YOLO" attitude, based on our fanatical love for our cars.
I've said this on other threads just like this one: have fun, but don't be an idiot.
Sure - OP if you get a GT, you'll enjoy an awesome car - at the expense of too much else. It all depends on your own sensibility, but I couldn't be happy with a deal or loan that I wasn't absolutely comfortable with. Would I like a GT350? Yep. Will I buy a new one, having just bought my GT? Nope. Will I consider making a move on a used one after I've replaced my civic with something? Possibly. Appreciate that the V6 is still an awesome car...

 

[vr4]

I got the Sentra because the MPG was really good, that’s what sold me. BUT the acceleration was VERY underwhelming, it felt like it had 90hp, during the test drive I didn’t even think about the acceleration and I just wanted to see if it was a comfortable car which it was, but after a while I couldn’t take it. It's a good family car but as a single guy in his 20s w/ no kids, I wanted a chance to drive a car that I would actually enjoy so I traded it in for my V6 Mustang. I rolled the loan over to the 22k Mustang and after everything it came out to 30k. Financially, it was a stupid decision.. but car-wise, I really enjoy this car, I still get decent MPG, my insurance is still cheap, it looks better than a Sentra, has a lot more power, and I get a lot of compliments on it…something I was never used to.

I have an 03 cobra and a Suzuki swift as a DD (along with a ton of other cars)

Pay down the v6 and buy a cheap 90s beater to keep the miles off. Buying a new car for mpg isn't very smart thanks to all the additional weight they need to lug around. My swift gets 44mpg and is capable of high 14s.

 

[EcoSwag1990]

the CDs are marginally more than the 1% APY on barclays. i was thinking about laddering CDs, but i'd rather throw whatever i have in excess of 20k in a mutual fund. this one in particular https://personal.vanguard.com/us/funds/snapshot?FundId=0540&FundIntExt=INT

That's a pretty good one for someone willing to take on a little risk

 

[jtmat]

I get the inflation-adjusted yields and compounding interest, which is what I was referring to receiving prior to paying upfront. That 30k was seeing positive returns for 5+ years before being spent on the car. Now, that money could be kept in the investments and hopefully continue to grow, sure. But at some point you have to cash your chips and pay the 30k... today or tomorrow.

Personally I don't want to over borrow money just for the sake of investing. It can expose you. It increases your liabilities and takes away your purchasing power, not to mention that it adds stress and isn't always going to give you a positive return. So I look at this as separate money - money that I spend and money that I invest. Car money is money I spend, but at the same time I do it without taking unnecessary losses. My investing portfolio is a one-way street: money only goes in, and it already encompasses 15% of my income.

Many people take out loans, like I mentioned earlier, simply because they cannot afford to pay cash. There's nothing wrong with that, up to a point. The danger in credit is that many creditors allow you more credit than is truly feasible for your budget. Many Americans today have built themselves a financial house of cards because of their dependence on other people's money. But if they adjusted their views on money only slightly, they would know what they can afford, wouldn't be in debt to others, and would actually save money... which is different than investing money... but opens up a lot of investment opportunities.

You are generally 100% right, if you are setup that way.

It all depends on how you are setup and your stomach for risk. Without risk there is no reward. Back when a good loan rate was 7%, I would 1000% agree with you. Now at 1.5%, I take some risk.

I recommend no less than 20% for retirement... but those are my numbers, some might need 25%. I have my core retirement (20% I can't/won't touch) and then investment money I play around with (which does well, actually - around 3% monthly ).

None of this helps the OP right now, obviously. Being upside down in a car is never a good idea and why banks/dealers make so much off of selling gap insurance.

This is a Mustang forum - not a financial advice forum.

Not sure how you can talk about a Mustang and not talk about the financial side of the house. These cars are not $10,000. If you are not setup properly to purchase one (and maintain/insure/gas), you can get yourself in trouble. Fact is these cars cost much more over 5 to 7 years than some other cars (say a Honda civic).

the CDs are marginally more than the 1% APY on barclays. i was thinking about laddering CDs, but i'd rather throw whatever i have in excess of 20k in a mutual fund. this one in particular https://personal.vanguard.com/us/fun...FundIntExt=INT

I have one Navy Fed CD at 5% and another at 3%... those were nice finds. They are capped at $5k and $3K, respectively, but still better than a savings account.

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