[TheUNZippee!]

*Poll Added*

I love my Mustang. Dearly. Everyone here has their reasons as to why they love a particular car. I don't have to explain what makes us love cars; the reason most of us wound up here at MM is our love for a particular car.

I was a huge car guy back in the day when I was the age of many of our young members. I constantly owned 3 or 4 cars at once. I served 4 years of my apprenticeship; I had wanted to be a mechanic. I owned big block Cudas, Road Runners, Beaumonts, and others.

As happens with life, mine took a turn. I messed up my high school, got married, had a child, and bought a house by the time I was 22. The cars quickly went bye-bye.

I put many years in with not even a daily driver, as we fought to stay above water and get better with money.


Fast forward to 2006. We are a little better with money, so I saved up 7 grand and bought my baby, my loaded to the nuts 07 GT. But alas, I am still in Canada, so the car stickered out at 39 grand. Plus 15% sales tax.

Add seven percent interest, I'm paying 305 dollars for the car. Twice a month.

I love my Mustang. I waited almost 20 years to get a car like this. I put my time in in beaters when I did start buying cars again, and put 6 years in in a base model Focus.

I'm a pretty basic guy. I don't have a boat. I don't go to bars. I buy beer a handful of times a year. I don't go on vacations, and we don't have tens of thousands of dollars of CC debt. We never got a second mortgage. I've lived in the same house, our first one, since 1991.

So I love my Mustang. It means a lot to me.

I have 30 months left to pay on it. It would have been 26 months, but I added payments to the end a couple times when my wife was ill.

Six hundred bucks a month. Another 350 to 400 in fuel to drive it to work in the summer. (I am 250 miles from work).


I'm tired of not making the right choices in life with finances.

So these are my options.

-Sell the car flat out. I am roughly 1500-2500 negative equity in it. Continue driving my beater Explorer and save money. Explorer is fuel hungry though.

-trade the Mustang in on an economical compact. Given my current equity in the Mustang, buying a 20k dollar Focus or Fiesta type car will save me almost 400 a month in car payment alone. It will save me an additional 150 or so a month in fuel.

-re-finance the Mustang. Putting the 19 I owe on it over another five years will roughly halve my monthly note, saving me 300 a month.

-consolidate the 19k into our mortgage, eating up about half the equity I have in my home. This saves me about 550 a month, but I could now put extra money into my mortgage, thus paying the principal down far more quickly.


What do you guys and gals think?


Cliff's notes: As a great man once said, "Read the fucking post if you want to help."


lol

[dr.gonzo!]

If you were to get rid of the mustang, I would NEVER trade it in to a stealership, you will lose a lot of coin that way. Also, I would not spend over 10 grand (8 grand American $$) for an economy car. That extra 10 grand could buy you a shit load of gas.

[TheUNZippee!]

Originally Posted by dr.gonzo If you were to get rid of the mustang, I would NEVER trade it in to a stealership, you will lose a lot of coin that way. Also, I would not spend over 10 grand (8 grand American $$) for an economy car. That extra 10 grand could buy you a shit load of gas.

Thanks for the input G. So you would buy a used economy car? Up here you won't find a decent economy car for under 15 grand, unless you buy a kia with roll up windows. I put 6 years in a base model Focus, no cruise, crank up windows, only option was ac. So I'm not going THAT basic if I do sell the Mustang.

[AzSonicSnake]

honestly, if you truely feel passionate about your car, and its the one you plan on keeping for a long time (as i feel about my cobra), i would roll into into the equity in your house. honestly thats how i own mine. i could never find a lower intrest auto loan then the equity line of credit we pulled out. and my payment is in the 300 range for that line. but, we also put a few things other than the car on it. i know it may not be the most sound advice, but frankly, if its something you plan to retain for a long time, and its something you see yourself enjoying for years, i would keep it.

[dr.gonzo!]

Originally Posted by TheUNZippee! Thanks for the input G. So you would buy a used economy car? Up here you won't find a decent economy car for under 15 grand, unless you buy a kia with roll up windows. I put 6 years in a base model Focus, no cruise, crank up windows, only option was ac. So I'm not going THAT basic if I do sell the Mustang.

Yeah I don't know about American/Canadian dollar conversion lol

But I find it counter productive to buy a brand new economy car in the range of 15 to 32 grand (US dollars)to save money. You lose so much value as soon as you drive it off the lot.

You might get 30 mpg but for the money you spend on car payments you could have owned the car outright and just put gas in it.

[dr.gonzo!]

I am going to try to get a newer car with the money I get from selling the stang without having to make payments. Its kinda hard to sell a vert and keep it clean in the winter so I will wait until spring. But if I can sell my car for ~$3500 I am looking at 2000 to 2003 ford Taurus for around $2800 + sales tax of 8.225% + $40 for plates = $3070.30

That means I will have $430 left for my first laptop and a more comfy daily driver that get 24~26 mpg. (My gas light comes on @ 150 miles in the stang)

[TheUNZippee!]

Originally Posted by AzSonicSnake honestly, if you truely feel passionate about your car, and its the one you plan on keeping for a long time (as i feel about my cobra), i would roll into into the equity in your house. honestly thats how i own mine. i could never find a lower intrest auto loan then the equity line of credit we pulled out. and my payment is in the 300 range for that line. but, we also put a few things other than the car on it. i know it may not be the most sound advice, but frankly, if its something you plan to retain for a long time, and its something you see yourself enjoying for years, i would keep it.

Thanks for the thoughts mang.

My wife is also of this mind. She doesn't want to see me give the car up, and thinks we should put it into the mortgage.

Originally Posted by dr.gonzo Yeah I don't know about American/Canadian dollar conversion lol But I find it counter productive to buy a brand new economy car in the range of 15 to 32 grand (US dollars)to save money. You lose so much value as soon as you drive it off the lot. You might get 30 mpg but for the money you spend on car payments you could have owned the car outright and just put gas in it.

Also food for thought then. So something that is 1-3 years old, thus saving the depreciation loss versus buying new.

[wraitherx]

i also agree with what AZ said. You wrote how you saved up for years and waited to get the right car and to me it sounds like you do not really want to get rid of it. It probably has become a part of you at this point as ours have to many of us. Your reason is sound though and if you roll it into your equity, like you said, it will cut your monthly down by 500 and you can "have your cake and eat it to" thats my and I hope that it helps

[TheUNZippee!]

Originally Posted by wraitherx i also agree with what AZ said. You wrote how you saved up for years and waited to get the right car and to me it sounds like you do not really want to get rid of it. It probably has become a part of you at this point as ours have to many of us. Your reason is sound though and if you roll it into your equity, like you said, it will cut your monthly down by 500 and you can "have your cake and eat it to" thats my and I hope that it helps

Thanks man.

Yes, I absolutely do not want to get rid of it. But I will if I have to to save money.

[1FastFox]

Dont sell it or trade it in on a more fuel efficient car. You will never forgive yourself. You ( like alomst everyone one here ) has a fair amount of sentimental value wrapped up in your car. It almost is like its a part of you and makes you who you are.

Honestly, If I were in your shoes. I would roll it into your mortgage. This is your best bet, as interest rates are VERY low here ( dont know about Canada ) and you could at the very least shave a basis point or two off your interest rate. This also allows you to keep you car.

[Fox2102]

refinance or add it to the morgage. I'll tell you why. You know the situation i'm in with my finances. Well last year I had bought myself an epiphone les paul guitar. It was beautiful and I loved it. Well I got hard up on money and sold it. I have regretted doing that every since. You and I both know you would be miserable if you sold that car

[TheUNZippee!]

Originally Posted by 1FastFox Dont sell it or trade it in on a more fuel efficient car. You will never forgive yourself. You ( like alomst everyone one here ) has a fair amount of sentimental value wrapped up in your car. It almost is like its a part of you and makes you who you are. Honestly, If I were in your shoes. I would roll it into your mortgage. This is your best bet, as interest rates are VERY low here ( dont know about Canada ) and you could at the very least shave a basis point or two off your interest rate. This also allows you to keep you car.

Thanks for the advice John. Seems most people are thinking mortgage.

Interest rate's here are decent. I'm currently at 4% for an accelerated weekly fixed.

[TheUNZippee!]

I added a poll on this thing so I can keep track of everyone's thoughts.

[Smoothgrandmama]

How about 401k loan? My 401k plan does with the prime rate here @3% and they take the money out of the check to pay it back based on your pay periods.....

[chocolate]

Originally Posted by AzSonicSnake honestly, if you truely feel passionate about your car, and its the one you plan on keeping for a long time (as i feel about my cobra), i would roll into into the equity in your house. honestly thats how i own mine. i could never find a lower intrest auto loan then the equity line of credit we pulled out. and my payment is in the 300 range for that line. but, we also put a few things other than the car on it. i know it may not be the most sound advice, but frankly, if its something you plan to retain for a long time, and its something you see yourself enjoying for years, i would keep it.

I agree with this guy. ^

You could also sell the stang. and get an older used one. That way you still have a mustang but since it is not new you will pay less on insurance and u will still have a mustang for fun. Sucks to hear how things turned out but life will go on. Keep looking up and climbing the ladder, you only get closer to the top.

BTW you have owned your house since the year i was born. DAYUM. lol

[AzSonicSnake]

Originally Posted by TheUNZippee! Thanks for the thoughts mang. My wife is also of this mind. She doesn't want to see me give the car up, and thinks we should put it into the mortgage.

good to hear the wife agrees! not too long ago things got tight for us, and rather then see us possibly suffer, i mentioned to my wife about selling the toy since its just that. and she said about the same stuff. said she did not want to see me sell off something that she knew meant so much to me. so, if you wife agrees, and supports that, i would definetly roll with it. especailly with what you have put into the car, and how you saved for it and what not. i honestly think you would really regret selling it off for something cheaper or more efficent on gas. and since you'd be losing money, it makes even more sense to hold onto it.

[TheUNZippee!]

Originally Posted by Smoothgrandmama How about 401k loan? My 401k plan does with the prime rate here @3% and they take the money out of the check to pay it back based on your pay periods.....

We don't have those up here eh

Originally Posted by xNUM1KILLAx I agree with this guy. ^ You could also sell the stang. and get an older used one. That way you still have a mustang but since it is not new you will pay less on insurance and u will still have a mustang for fun. Sucks to hear how things turned out but life will go on. Keep looking up and climbing the ladder, you only get closer to the top. BTW you have owned your house since the year i was born. DAYUM. lol

Well if I am going to drive a Stang, it will be this one. Although I like all gen's of Mustangs, I LOVE the S197, and it's what got me back into the car game. As for insurance, the difference isn't all that huge for me due to my age and experience.

As for how things 'turned out', it's not that I'm in a financial crisis. *touch wood*

I'm just living paycheck to paycheck far too often, and not saving any money. When you make six figures a year, you should be saving money.

So I'm just trying to do the right thing.

[TheUNZippee!]

Originally Posted by AzSonicSnake good to hear the wife agrees! not too long ago things got tight for us, and rather then see us possibly suffer, i mentioned to my wife about selling the toy since its just that. and she said about the same stuff. said she did not want to see me sell off something that she knew meant so much to me. so, if you wife agrees, and supports that, i would definetly roll with it. especailly with what you have put into the car, and how you saved for it and what not. i honestly think you would really regret selling it off for something cheaper or more efficent on gas. and since you'd be losing money, it makes even more sense to hold onto it.

Sounds like you married the right woman man. It's nice to have someone who cares about what's important to you, ain't it. I wouldn't last too long with a woman who nagged me about the things I like, or tells me "You can't buy a Mustang."

Yeah.... not good.

[1FastFox]

Originally Posted by TheUNZippee! Thanks for the advice John. Seems most people are thinking mortgage. Interest rate's here are decent. I'm currently at 4% for an accelerated weekly fixed.

Well that brings up another point. Whats the difference between the rate you have and the ones being offered now? You need to google an interest calculator and see what the bottom line difference is between when you would pay on your car ( assuming you made payments till your last ont ) and what it would cost you to put it into your mortgage. This will allow you to make more of an educated desicion financially.

[95StangMX]

Keep it zippy and roll it into your house. Less intrest than refinancing, and drops off that payment, and you get to keep your baby. Win win situation. besides 4% has to be a lot better than the would give you on a new prius!