Need Advice:

[Mr 5 0]

CupCake:

Pulleys, exhaust mods and a cold-air induction kit are all good beginner modifications and I recommend them, especially the CAI kit, which is easy to install and budget-priced, as mods go. However, the very best bang for the buck you can do, if the budget permits, is to change out the ring and pinion gears for a lower (higher numercially) ratio set.

Your Mustang has a 3.27 ratio now and with a switch to a 3.73 ratio you'll feel a huge boost in performance without doing a lot of expensive engine modifications. The cost would be about $400. - $500. depending on who did the labor and their specific charges. The gears are about $225. or so and Ford Racing is your best bet for brand.

As you've mentioned that your 195 HP 3.8 Mustang gives you very adequate performance now, the addition of a 3.73 ring-and-pinion would absolutely give you more than adequate performance for around $500. with no engine modifications or emissions problems. I highly recommend you go this route as it has worked well for tens of thousands of Mustang owner for many years. I'm one of them.