trade in
Thread Starter
4th Gear Member
Joined: Sep 2010
Posts: 1,724
From: Not sure
I think your dad has the best advice, but if you dont mind telling us, what do you currently owe and whats your payment?
Reason I say this is depending on those two figures, and how long it takes to save the 5k you can really make out. Say right now you still owe X but they are only gonna give you <X. Well over the next (year?) you save $5,000. You have also paid down more on your car. Now you owe Y and they will give you Y, so you trade even and you have $5,000 to put down.
If you already know you WANT the 5.0, do not drop the money in your 4.6. It will be money you never get back and will never be the car you WANT. If you dont care about the 5.0 and you just want the power, then by all means mod away.
Like I said, unless I had some of your real life numbers to work with, it would be hard to give GOOD advice.
What you owe
Payments
how long to save up the 5k
Reason I say this is depending on those two figures, and how long it takes to save the 5k you can really make out. Say right now you still owe X but they are only gonna give you <X. Well over the next (year?) you save $5,000. You have also paid down more on your car. Now you owe Y and they will give you Y, so you trade even and you have $5,000 to put down.
If you already know you WANT the 5.0, do not drop the money in your 4.6. It will be money you never get back and will never be the car you WANT. If you dont care about the 5.0 and you just want the power, then by all means mod away.
Like I said, unless I had some of your real life numbers to work with, it would be hard to give GOOD advice.
What you owe
Payments
how long to save up the 5k
Why not just take the 5k and put it towards your loan to get ahead on it? The last thing you should do is drop 5k on a supercharger if you are still upside down on your car. Using that money to pay off some of your loan will enable you to get your shelby that much sooner. Unless you're not serious about that.
Thread Starter
4th Gear Member
Joined: Sep 2010
Posts: 1,724
From: Not sure
The power steering if basically fixed I pick it up tomorrow morning, but my big problem here is, pay off the car ina hurry and trade it in on a shelby or mod the hell out of my 4.6?
5th Gear Member
Joined: Mar 2007
Posts: 3,062
From: Florida
Chances are you're upside-down on the loan by at least the 5 grand it will take to supercharge it. This is why your Dad's plan isn't the most sound financially. It'll cost you the price of the supercharger just in rolling that amount onto the new loan, before you even get to financing the new car. Your payments are going to go up as well probably.
That said, I've done stuff like this a few times, and sometimes it can make some sense depending on the circumstances around the situation. If it is just a cost saving measure, then thats not going to work. If you want the Shelby because its a much more stout platform to run heavy boost on, then maybe its a decent idea... just understanding that in order to get that Shelby, you're losing a lot of money in the process.
Lastly, there is a limit on the amount of money you can roll into a new car loan from your old, and its all about percentages. On EXCELLENT credit (like 720+) you're usually allowed to go up to about 125% of the value of the new car on the loan with some lenders. So if the new car is worth $30k, and you are in this situation with the right lender, they may loan you like $37.5k.... hth. With the money you've already invested in your car which will be a total loss at trade, I'd mod the 2010 personally. Your payment isn't that bad...
That said, I've done stuff like this a few times, and sometimes it can make some sense depending on the circumstances around the situation. If it is just a cost saving measure, then thats not going to work. If you want the Shelby because its a much more stout platform to run heavy boost on, then maybe its a decent idea... just understanding that in order to get that Shelby, you're losing a lot of money in the process.
Lastly, there is a limit on the amount of money you can roll into a new car loan from your old, and its all about percentages. On EXCELLENT credit (like 720+) you're usually allowed to go up to about 125% of the value of the new car on the loan with some lenders. So if the new car is worth $30k, and you are in this situation with the right lender, they may loan you like $37.5k.... hth. With the money you've already invested in your car which will be a total loss at trade, I'd mod the 2010 personally. Your payment isn't that bad...
5th Gear Member
Joined: Sep 2004
Posts: 3,411
From: Woodbridge, VA
I'd say keep it. If it's under warranty, get the dealership tio fix and keep the car you have.
Don't buy into the whole "Must keep up with the newest and greatest" to get the best. It's a financial trap. Otherwise, you would see me with a brand new 5.0 in my sig instead of my oh-so-ancient 03 GT.
Think of it this way, you already have a nice car, is basically brand new. Is it worth being in debt for a lot longer just for that 5.0 and to impress somebody else...who isn't paying your bills for you? I'd just hang on to that car, but at the same time, put extra money a month away so in a few years, you'll have that money you're saving as a down payment PLUS whatever you trade your current car in with. Knock out two birds with one stone.
Your 2010 Mustang, even 2-3 years from now, if you keep low mileage on it, will still have decent resale value. I see many 2007-2009 GT's with low mileage still selling for about 20-24K around here. Just hold out a bit. And when you sell, try selling privately if you can.
Don't buy into the whole "Must keep up with the newest and greatest" to get the best. It's a financial trap. Otherwise, you would see me with a brand new 5.0 in my sig instead of my oh-so-ancient 03 GT.
Think of it this way, you already have a nice car, is basically brand new. Is it worth being in debt for a lot longer just for that 5.0 and to impress somebody else...who isn't paying your bills for you? I'd just hang on to that car, but at the same time, put extra money a month away so in a few years, you'll have that money you're saving as a down payment PLUS whatever you trade your current car in with. Knock out two birds with one stone.
Your 2010 Mustang, even 2-3 years from now, if you keep low mileage on it, will still have decent resale value. I see many 2007-2009 GT's with low mileage still selling for about 20-24K around here. Just hold out a bit. And when you sell, try selling privately if you can.
Joined: Oct 2010
Posts: 15
From: AZ
To get a good guess about how much you owe at 0%, figure out how much of your monthly payment pays for gap insurance. Subtract the gap insurance from your monthly payment to find out how much you are actually paying off every month.
Start with your loan balance. Subtract the amount of your car payment that actually pays on the car once per car payment you have made. The amount left over is the amount you still owe.
After the housing collapse, I don't think banks will be lining up to loan you more than 100% of the dollar value of any depreciating asset.
Start with your loan balance. Subtract the amount of your car payment that actually pays on the car once per car payment you have made. The amount left over is the amount you still owe.
After the housing collapse, I don't think banks will be lining up to loan you more than 100% of the dollar value of any depreciating asset.
5th Gear Member
Joined: Mar 2007
Posts: 3,062
From: Florida
Thread Starter
4th Gear Member
Joined: Sep 2010
Posts: 1,724
From: Not sure
Yeah I think I am just going to keep this for now and instead of supercharging it, just go with a cheaper power adder like cams and keep it n/a so I can put extra money towards my current loan and pay the car off faster. My fathers idea sounded all nice at first, but if I upgrade to a shelby now what am I going to upgrade to when im 30?
5th Gear Member
Joined: Mar 2007
Posts: 3,062
From: Florida
You've got a nice car dude, I agree, just stick with it. If you wanted to boost it for cheap, I'd recommend the Brenspeed Vortech V3. Since you must already have an SCT device, that kit would cost $3699, and will put down 400 rwhp.
Banned
Joined: Mar 2010
Posts: 502
From: missouri
He sounds kinda like me lol. I'm not putting a SC on my stang. I'll save the $$ to go towards a new car in a couple years.
You're risking it too going f/i. Unless you are wealthy and have money to buy a new engine and have a backup car to drive then it's not worth it.
You're risking it too going f/i. Unless you are wealthy and have money to buy a new engine and have a backup car to drive then it's not worth it.