First Mustang in Near Future--Need input.

[bahasad]

Always go with what you want, if you feel like you'll be unsatisfied, don't get an EB.
However, besides on the internet, the EB is a good motor and makes the car fun to drive.

I would skip out on the 07-08 that's for sure. Besides having to deal with a much older chassis, powertrain, interior (ages behind), exterior, you're financing an 8-9 old car. That seems like a very poor financial decision.

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[JamesinLittleSilver]

Drive both and then wait. I have the EB and love it. Others have a GT and they love that. Neither is right or wrong you should get what you want.
That said if you can wait until you can afford a new car, as someone said this is not a car likely to be owned by little old person driven to the grocery store once a week.
I would stalk them until they offer 0% rate and then go for new.

Used cars get worse interest rates in general.

 

[INeedTorque]

Like I said, I haven't driven the GT yet, I will come May/June. The EB Prem makes much better financial sense either way. I need to compare insurance rates because if it is that big of a swing I might as well drive an EB until I'm atleast 25 and then upgrade into the GT.

Thanks for the input everyone.

I know that buying a car is a depreciating asset blah blah blah but I'm only 22 once and I might as well be driving something that puts a smile on my face rather than settling for a new mazda6 or some other econobox.

I will be waiting atleast 6 months after signing on with my job in order to accumulate a decent down payment and an emergency fund--I'm not going to instantly go car broke after graduation.

 

[bay584]

I'll be graduating here in May with my undergrad in Economics (Unversity of Iowa) and heading to Wichita, KS for work after school. I'll be bringing home a good paycheck and will have some extra cash flow for sure.

My current DD is a 2012 Mazda 3 that will be paid off in a handful of months. It has 55k miles on it with no problems. Unfortunately, it doesn't provide smiles per gallon the way I would like.

Haven't read what everyone else said because all of these threads start off one way and end up on a completely different topic.

OP, I would just say that that as a recent college grad I would save your money and invest in the market if you don't have any debt. We have time on our side and that time can be used to gain much more than just a car. You have a pretty recent car now so save your money because cost of living is a lot different after college (maybe not in Kansas). Especially actually having money to feed yourself. That was a luxury I forgot about but it gets expensive.

Admins, please don't delete if this is in the wrong place, this took forever to type out.

If you thought this took forever, get used to typing emails man :lol:

 

[mnm4ever]

I wouldn't get a Mustang if it wasn't the GT, you will never find a GT owner who wishes he hadn't gotten the V8!

That being said, most college graduates think they are going to be making a lot of money and will have plenty left over for a new car payment. But life costs more than you think. You have a good car already. Unless you have some really large nest egg already saved up already, I would recommend waiting on the new car for at least a year.

Get settled in your job, make sure you like it, and settle into your apartment or house or whatever. Also max that 401K from day one. Save at least as much as your company matches, preferably more. The contribution limit for 401K is $18k per year, if you can't afford to save that much on your new salary then you can't really afford a $40k car either. Then I recommend you figure out what your new car payment would be, then double it, and save at least that much every month in a car fund.

Make sure you can live within that budget for a year without dipping into the car fund. At the end of the year you know for sure you are comfortable with the payment, and you have a nice $10-12k nut to use for a big down payment, or mods, or just an extra safety net. Or maybe you realize waiting a year wasn't that bad, and you wait another year or two until you can buy that Mustang for cash. I know it seems like you can't wait to drive a cool car but if you do it right the first time you will always have the financial freedom to drive what you want.

 

[INeedTorque]

Get settled in your job, make sure you like it, and settle into your apartment or house or whatever. Also max that 401K from day one. Save at least as much as your company matches, preferably more. The contribution limit for 401K is $18k per year, if you can't afford to save that much on your new salary then you can't really afford a $40k car either. Then I recommend you figure out what your new car payment would be, then double it, and save at least that much every month in a car fund.

Make sure you can live within that budget for a year without dipping into the car fund. At the end of the year you know for sure you are comfortable with the payment, and you have a nice $10-12k nut to use for a big down payment, or mods, or just an extra safety net. Or maybe you realize waiting a year wasn't that bad, and you wait another year or two until you can buy that Mustang for cash. I know it seems like you can't wait to drive a cool car but if you do it right the first time you will always have the financial freedom to drive what you want.

Certainly appreciate the advice.

I've already budgeted to max out my 4% match (If you are placing more than your match into your 401k you are not getting the best return on your money) as well as max out my Roth IRA (5500 annually) and throw an additional couple grand into a high risk brokerage account.

After budgeting (generously) I have around $800 maximum for car expenses-between insurance and payment.

Weighing the pros and cons I'll just likely drive my mazda until spring 2017 and then make a decision with 8k+ sitting for a car purchase. Thanks for the input everyone, I really do appreciate it.

 

[mnm4ever]

Certainly appreciate the advice.

I've already budgeted to max out my 4% match (If you are placing more than your match into your 401k you are not getting the best return on your money) as well as max out my Roth IRA (5500 annually) and throw an additional couple grand into a high risk brokerage account.

After budgeting (generously) I have around $800 maximum for car expenses-between insurance and payment.

Weighing the pros and cons I'll just likely drive my mazda until spring 2017 and then make a decision with 8k+ sitting for a car purchase. Thanks for the input everyone, I really do appreciate it.

Congrats then, it sounds like you are already making smart financial decisions, which I did not learn until... well... like last year?? LOL

I realize there are two schools of thought for maxing the 401K. I feel the tax benefits are worthwhile, especially if you have some good investment options with your 401K. But that only really matters in the higher income brackets, or for DINK couples with minimal write-offs. Clearly depends on each person's situation. The point is really if you CAN save that much and not starve, not so much if you do it that way.

Same thing with down payments on cars. I put almost nothing down on both my cars, because the interests rates are so stupid low. I'd prefer to invest $10k somewhere else and make the higher car payment, but the point is really to have the money to pay it off if you needed to.

 

[JamesinLittleSilver]

You should get a few bucks off for recent college grad too. Plus wait for 0%. It is a few thousand savings over 6 years.

 

[INeedTorque]

Same thing with down payments on cars. I put almost nothing down on both my cars, because the interests rates are so stupid low. I'd prefer to invest $10k somewhere else and make the higher car payment, but the point is really to have the money to pay it off if you needed to.

Certainly. Side note, My color selection would be the Comp Orange and I see you have one-How well does it stay clean-does it hide dirt moderately well? Do the cops seem to have an attraction to it?

 

[TheMightyAndrew]

You should get a few bucks off for recent college grad too. Plus wait for 0%. It is a few thousand savings over 6 years.

How often does that 0% roll around?

 

[BobbyGT]

Im also a recent grad. Got a solid job right after school and bought my GT after one month of working. There are a couple really important factors that you'll see when your about to purchase.


#1 - Hows your credit? If you have no real credit history, and have just started working they aren't going to sell you the car. I had already leased my previous car (no cosigner) and built my credit a lot, and walked into the dealer with 0 outstanding debt. Its not just about the score, its also based on how much you have previously borrowed and paid back. If you have a cosigner this wont really matter, but I personally like doing everything myself.

#2 - Insurance. My insurance cost $300 per month. Great driving history, one ticket 6 years ago. I live in Miami so this is also a huge factor, and I have high coverage.... and im 23 so it wont drop rates for another 2 years. You'll be paying more for your insurance monthly on that GT500 then the actual payment. It sucks, but theres no way around it.

#3 - Monthly Payments. I put down 15k when buying my car, and still pay over $500 monthly (3 year term, financed just under 20k) but the monthly payment is also less then 15% of my monthly income. In my opinion you should never pay over 20% of your monthly income for just your car. This doesn't include gas, or any other misc charges. I didn't just make up this number, Look around and do some research you'll find similar recommendations.

#4 - If you don't care about the financials blah blah blah at least get a GT. I had test driven both and the ecoboost is cool, but you'll pay close to GT money for a loaded ecoboost, and wont get close to as many "Smiles per Gallon" lol.



Best of luck to you, hopefully we can be 5.bros in the future!

 

[Flyfaster1]

Like a few have said. Invest and/or save for a bit first then get a GT when you feel the time is right. Of course you can afford one with your given plan/time frame and your own situation.

My situation was much like yours - very fortunate to have my folks pay for my undergrad, and everything involved (minus some IT certs I decided to go after along the way). I didnt have debt when I got out but did as soon as I got out... I went with a "newsed" car immediately, and nice bachelor pad in downtown Dallas and lived it up. I would have more saved if it werent for the vehicle and modding.

However, flip side and devils advocate... I bought my PP Premium Magnetic 15 GT with 8.9k miles for 31.5k out the door - total... I knew how much the other guy got on his trade, long story, so we all got a good deal. You wont have to spend 35k+ now or later if you look hard enough. You can find good deals and you can still budget accordingly (which it sounds like you are capable of and more so than I was at the time ~ 10-12 yrs ago, but Im not old damnit ;). Just keep the modding low, find good deals, etc. I wouldn't drop much cash on a car though, with low interest rates (if your credit is solid enough of course). Stay liquid and invest what you can, wait a touch longer, put half of what you were thinking down and invest/save the other half.

Either way it sounds like you have a good head on your shoulders, better than I did at that time.. good luck!

Almost forgot.. I have an 08gt500 and love it but it is far from the s550 platform, in every way except raw power. An about to go to college kid bought it from me since we dont have room with 4 vehicles. His budget ended up being a bit too tight so I bought it back from him, since I told him I wouldnt sell it unless I got dibs if he wanted to sell it. If you buy get the s550 and get a GT (although ecos are very cool and quick)!!

 

[JamesinLittleSilver]

How often does that 0% roll around?

I think once a year around Sept 1st.

 

[AR306]

I think once a year around Sept 1st.

Hell yeah.. trade this shit in Sept 2018.. hopefully the refresh will be out then.. Lol.

 

[JamesinLittleSilver]

How often does that 0% roll around?

If you guys are interested and can find a 2015.

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