Upgrading an '87
Holly:
All of your idea's for upgrades are good and will improve the Mustang. As already noted, avoid big mods like aftermarket cylinder heads until you can afford a total engine rebuild and do it then.
Cold-air induction, free-flowing exhaust and lower rear gears will all improve performance (although not drastically) but beware of straining the 15-year-old AOD transmission unless it's had a recent rebuild.
For longevity, change the engine oil & filter frequently (every 2,000 miles is my marker) and change the transmission fluid immediately if it hasn't already been taken care of.
Read the various posts in this forum and you'll see that there are many things you can do to enhance your '87 'Stang, which was a great car to begin with.
The high mileage precludes the big HP-adding mods but you can still increase it's performance and your driving enjoyment without really doing much to the engine, as it's such a great performer to begin with.
If you really love the car, think about a engine rebuild or buying a 'crate' engine (already assembled) in the future.
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