I'm trying to buy a new mustang?

Question

The mustang I want is probably around 20,000. Right now, I have an 05 Focus that I will be trading in. The focus payments are about 265 a month. I want to stay under 290 for a payment. Do you think this is possible to do?

Answer 1

What I want to know is... WHY are you BORROWING money to buy cars that you cant afford in the first place??? If you cant pay cash... You cant afford it! NEVER borrow money to buy a car. Buy a cheap car that you can pay cash for... then put your payment money in savings each month and when you have enough cash saved THEN you can buy a better car. That is the Intelligent way to do it.

Ok... Now that I am done yelling at you... lets look at your problem logically.

05 Focus is worth 10-11,000 bucks. It is now 2 years old. How much do you owe on it? I would guess based on your payment that you took a 5 year loan on the Focus. If so, and you have paid for a couple years already, you should still owe about 9500 bucks. SO... You have ZERO equity in your car currently. In other words... You have NO MONEY! To buy a 20,000 dollar car, you would have to BORROW 20,000 bucks! Ford is currently offering 0% interest for 6 years. This would get your payment where you want to be... HOWEVER, This Mustang will cost another 50-60 bucks/month in Fuel... AND your insurance will be alot higher as well. PLUS you would be going even Further Backwards in life Going even DEEPER in Debt for even Longer!

I would like a new mustang myself, however, I have come to terms with the fact that I cannot afford one. It sounds like you cant afford one either. Heck... U cant even afford the car you have! You had to go deep into Debt to Buy it!

If I woke up in your shoes... I would get a second job... do whatever it takes to pay off this Focus loan in the next 12-18 months. If you cant pay it off in 18 months, I would Sell it, pay off the loan, and go get a cheap used car... maybe like an early 90s Mustang that you can pay cash for... then take your 350/month that the NEW mustang would cost you and put it into savings each month. At the end of 2.5 years, you would have about 12,000 in that account. That money plus the value of your current car will easily buy a 06 Mustang when it is 2.5 years old!

Then keep saving the 'payment' so you can pay cash for your next car... and so forth.

Answer 2

First, call your bank and find out what the payoff amount is on the Focus. Then go to KBB.com and find out what the trade-in value is. If the trade-in value is less than the payoff amount, you are what's called "UPSIDE DOWN," meaning you owe more than it's worth. Dealers will add the negative equity to your new loan, meaning your new car will be more expensive.

The possibility of you paying $290 a month on the Mustang is slim to none.

You should just concentrate on paying off the Focus (raise your montly payments to $350 if you can), then drive it another year while stashing money in to your savings. Then after a year you should have enough downpayment and trade-in to get the Mustang at under $300 a month.

Answer 3

just to let you know a 290 mo payment means you have to finance around 15,000 dollars. How much do you owe on your focus and what is it worth. If the payoff is higher than the value, then you have negative equity(upside down) and that difference needs to be added to the new loan. Also how do you think you can go from an entry level car like a focus to a mustang and only have your payments rise $30? I would like to live in a $400000 house and keep the same payment as my $180000 townhouse. But I know it will never happen. Champaign taste and a beer budget

Answer 4

Only if they give you AT LEAST what you owe on your Focus, plus put down another $3500 in cash, then buy it for 72 months at ZERO percent financing.

Did you price insurance for it? I'll bet it will be expensive.

Also, don't tell them how much you like the Mustang...if you do, they'll rip you off even more. Just tell them you are LOOKING, but not ready to buy just yet. They may give you a slightly better deal. Then, once they tell you how much they'll give you for your trade-in, tell them that you want to think about it for a day or two. They'll call you back in a few days and then you tell them:"That's more than I want to pay. Make them call YOU back until they come down to where YOU want to be. Don't buy it until they do.

I did just that and the Chevy dealer came down $4,800 in three weeks on a Colorado pickup! The day I took the test drive, they made it sound like it was a "do or die" situation if I left.

Answer 5

Here's how to work out roughly what payment will be.

Take the value of your current loan. Example 16000 = monthly of 260 then for every thousand more the new car is add 20 to the monthly. So 20000 - 16000 = 4000 4x20 = 80 new payment 340.

I'm making the number up here, but the 20 per thousand will get you pretty close.

Answer 6

NO there is no way you could stay under $290.00 especcially if you owe money on your focus if you owe money on your current car the dealer gives you the current value of it and if thats not enough to pay of your car they add the left over balance to your new car. I just bought a 2006 eclipse that costed 24,000 and its payment are 445.00 a month at the interest rate of 5.9% and thats with not trading any thing in on it that they had to pay off

Answer 7

I bought an 06 mustang back in october of last year - paid $20,750 for it - payments are $476 a month. You may get a better deal, I had no trade in.

Answer 8

is your money good? that's what is gonna come down to.Iam sure you will have no problem with that, but is the mustang a 6 or 8?your payment will go up i am sure,so will insurance.

Answer 9

trade minus payoff plus new car price = loan amount. figure with good credit $20 per thousand financed, down payment will obviously lower your payment

Answer 10

Depends on how long you plan to finance, your interest rate, the trade in value of your car, what you owe on it, taxes, etc. The answer is probably no, not at this time.