Should I keep my Stang?

For as much money as you ahve saved up, I can find V8 LX cars for not much more. If your determined to get rid of your Stang then sell it, add to the money you ahve a find a nice running V8 Stang. That would be a better choice than a V6 F-body.

I would not go to the GM's, as they are more complex, very fragile, and will be more expensive to keep up in the long run. Just sell the Mustang and get a 5.0. It's that easy.

yeah get a 5.0 I traded my 2.3 in for one last week and I love the power from the 5.0

There's that insurance thing though. Personally, keep the "slow"car for a while as you still have time to save up for a faster car. Turbo swap it for now and you'll be satisfied until you can really afford the money for the more expensive cars.

Insurance for a v8 mustang when your 16 is crazy. And buying a car with transmission problems is never a good idea. If you take that $1300 you have saved up, and spend it on a turbo swap, you'll be going faster then the 5.0's and paying less insurance.

I agree with Willy. In addition, you already know the pecularities of your stang, a new car has it's share of problems that need tackled. I've always felt that it's best to keep a car and keep fixing it, then to buy another one. Eventually that other one will have problems too. It's cheaper in the long run to fix what you have, make it faster, whatever, then to buy another car.

Mustangs are also great first cars, very easy to work on and being a 2.3, parts are plenty and cheap.

Maybe it's just me, but every car I've had was driven for a year before any changes were made, that way you can get all the little maintence items out of the way first. If you're only 16 deal with the slow car now, keep saving for a wrecked turbo coupe and other nick nack items for the conversion. Then next summer do the swap. This way you have a years experience with your car, you've been able to get it up to snuff mechanically and will last a lot longer than another car with a blown tranny.