2000 Black Mustang 160k Miles

How is the compression? It doesn't make any sense starting to build the engine if it is tired and in need of a rebuild.

$1000 isn't a lot of money. You can get a leather kit on Ebay for about $600, or maybe just get some seat covers, gears, and a shift kit. Or, if your're more handy, pull the engine and rebuild it with a cam and ported heads.

+1 on the engine

See if it's worth dropping that much money on things that improving the cars reliability. 160K is ALOT of miles. Like the others said, check the compression to see how it's running. If all is good and you have everything up to date on maintenance, get some fun stuff. However I might consider selling it now then later if you are thinking about it. Nobody is going to want a fairly close to 200K mile car, especially when there are plenty of your year with alot less. Just expect to basically get some change for a sale if you hang on to it.