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Stage 1: Basics

Advance the timing.

Keep the stock headers aftermarket headers dont do much for stock heads that are unported.

Open up the exhaust 2 1/2 X-pipe.

Under drive pulleys, K&N filter, and remove the silencer.

Then some 3.55-4.10 gears

Then get some good rear tires cause traction is your friend without it you wont be fast.

stage 2: Engine mods

Considering your car is speed density you may want to convert it to mass air before doing engine mods.

First I would do the heads and intake and leave the stock cam

GT-40 heads and intake and the stock cam with 1.7 roller rockers is a good set-up for speed density. At this point you would want headers.

Stage 3: suspension/weight reduction

After you beef up the motor you notice that the stock suspenion is no longer adequate.

Sub frame connectors are a must for fox body stangs. (money well spent).

Depending on how serious you are about speed you may want to remove the front sway bar and get drag springs/shocks. The budget thing to dois put 4 banger springs in the front.

Weight reduction is a thing that alot of people over look but it can be as effective as adding HP.

Sway bar
Dog Bone on rear end
A/C and components (Only for the hard core)
fiber glass hood.
Sound deadening material
aluminum rims
aluminum drive shaft
smog pump

etc...