I have two 94 mustang Gt's and experienced the problem in my V6 model mustang. I thought it was from the rear... but what was happening was the driveshaft was rubing on the emergency brake cables under the car. To fix this I installed the GT rear springs (they have a higher spring constant). The GT springs are also progressive which means they still have a bit of give at the top, but with passengers they really prevent anymore rubbing under the car. Next time you are under your car, look for scrapes on your driveshaft.

I believe the problem of squeaking when you go over bumps is caused by worn anti-sway bar bushings. This is a common problem among 95 Mustangs and is an easy fix for someone with decent mechanical skills.

The noise you hear is the e-break rubbing against your drive shaft under your car. I have a GT and had the same problem. It's a tricky fix; the bracket holding the e-break on under the car has to be tacked back into place, and after that is done, you can yank on it very hard or risk it falling again.

This model of Mustang is known to have this problem, but it won't cost more than $130 to have fixed.

I have a 94' GT, and also had a similar problem with noises when going over bumps and having passengers in the car. The problem in my car was that the handbrake came off the frame under the car and was hanging weird. My mechanic just tacked it on for me and I have not heard it since, but he warned me that the e-brake will be more susceptible to this now that it has happened.

It seems you were looking for an economy car in the first place. The Mustang was not a bad choice, but neither was it the best. The V6 models were sold mostly to folks who liked the performance image of the V8s, but preferred economy. What nobody will know is how far you drove the car after the gasket went? I've had head gaskets go, allowing coolant into the cylinder, and suffered no ill effects after replacement. In all fairness though, they were not V6 Fords, so it may be a case of apples and oranges.

Ford did not make a 3.8 V-6 for this year.

That's what you get for buying a 4 cylinder mustang :)

I own a numbers matching 1994 3.8L V6 convertible, so they did make a 3.8. Fox body 93 and back had 5.0s and sewing machine 4 bangers, and no V6s. Oddly enough mine squeaks from the driver's rear when getting in and out, or bumps. It's either the tiny sway bar or other bushings worn out. None are visibly cracked or outwardly damaged. She for sure also need shocks, springs etc, if for no other reason that just to lower the rear 1` 1/4 to flatten the vert twist. Tower braces and a roll cage too. Gut cats, dual out the 6, add cherry bombs dumped before the axle and eat Hondas and Acuras. :-)

Incorrect. Fox body Mustangs 1979-93 were available with both the 2.8L and 3.8L V6 engines, as well as the 3.3L straight six.