Welcome to the board. I can certainly sympathize, we have 3 young children, oldest is age 4. My wife and her parents believe my Mustang is impractical as well as a money pit. Her parents have gone so far as to offer buying me a new truck to drive if I sell the Stang!
I have a '92 GT and have not had a problem fitting baby seats and booster seats in the back. However, all 5 of us can't fit in the car, but that's why we have the van. My insurance is less than $100/month for both vehicles with State Farm, but I have a less than stellar driving record.
Get insurance quotes, get an approximate monthly payment for the car, assure your wife that you are buying a quality Ford product, and you have a good argument. Compare that with a similarly priced sedan. I've owned my GT for 3 years, put 64,000 miles on it, and have only had the fuel pump fail. Our '99 Venture has been in the shop 3 times since we purchased it new, and cost 4X what I paid for the GT. Good luck!
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-BearStang
'92 Mustang GT
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