When should I upgrade my car?

I currently have a 2006 Ford Mustang V6. I bought this with a loan a little over a year ago and am still paying off the loan, however I'm trying to decide whether to start looking for an upgrade to a newer year. First off, I don't like the limited options in my current car. The stereo is highly outdated and the only things my dashboard shows is the standard gauges and the mileage/trip meter, not even __ to empty. Second, there are a couple minor issues happening with the car that I'm reluctant to fix because I don't want to throw money at a problem that will keep recurring, I'd rather put the money towards a newer car that will last longer. Any advice?

In the next 1 year

Sell it a get a new Mustang.

Don't get a loan for a car unless you're sure you really want it.

Compare the amount owed on your outstanding loan to the trade in value of your vehicle. If you owe more than the car is worth, you are upside down and will have trouble getting a loan.

The important things when you got a car

is it reliable
is it comfortable
is it cheap to run

all the rest are trivial or personal preferences

when you buy a new car the important bits are the same as the above + how much is it gonna cost to buy

when you are thinking about selling the car you got the things to consider are
1) is it becoming unreliable
2) are the costs of keeping it running starting to increase
3) are the things that are not my personal taste becoming annoying
4) will the next car I buy be any better
(remember- you know the good/bad things about the car you got. How much do/will you know about the car you are gonna get

(who cares if the stereo is outdated? - Does it sound ok
Who cares if the dials are just standard ones?- Personally I don't drive around looking at them very much - All I care about is if they show me what I want to know

You are ignoring maintenance because you want to trade up. The lack of maintenance will wipe out your trade in value.

The major problems you list with your current car are all minor things.

How much equity do you have in your car" my guess is that the number is close to zero and you might actually be upside down and owe more than it is worth. If you bought your car from a used car dealership that can finance anyone I'm absolutely sure you owe more than the car is worth.

Don't upgrade until you pay it off. If you trade it in now, the dealership will simply add what you owe on the car to the replacement car's price. They do not pay off your loan with their money; they pay it off with your money. With that in mind, no REPUTABLE lender will loan you more money that the car that you're buying is worth. So, you'll be routed to a sub-prime lender with terrible terms for you.

The issue of replacing a 13 year old car is somewhat complex.

Without knowing what the trade in or private selling value of your current car is, and what your current loan balance is, there's no way to even guess at the money side of things. Are you in the hole or not?

Now, if you have money to burn, then you could buy a brand new car., But, what is your credit rating, what will be the interest rate on your loan, how much can you put as a down payment, or can you buy cash? All these points are key in terms of deciding what your budget is.

Then, there's what will insurance on a newish car cost you, likely more than you're paying on the 06 car. Have you budgeted for that added cost?

In my experience, buying a brand new car is great, if you have tons of money just sitting around doing nothing for you. But, for best value, buying a solid car that is anywhere from 1 to 3 years old will save you a ton of money up front, and still get you a car with a long enough lifespan of reliable service. That would be the smart money way to go.

And yes, bells and whistles in the car are nice to have. But, the most important part about picking out a new-to-you car is, will it's features match your needs in a vehicle for the next decade or so, and how reliable is the vehicle.

Obviously, last year, instead of buying what you did.

Don't even think about getting another vehicle until the loan is paid off, especially if you currently owe more than it is worth as a trade-in. And you had better keep up with the maintenance or it's trade-in / resale value will be even lower.

You can easily have a modern stereo installed for not much money and you do not NEED anything fancier as far as gauges and options go. If you can't even figure out when to buy gas without a gauge that tells you how many miles are left to empty, you're incompetent and probably shouldn't own a car in the first place.