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to make an 89 Mustang handle would require a major suspension upgrade. The notchbacks had the worst body style for getting "loose" and rattling, creaking, etc because of the notchback.

That early Fox body style was known to be a straight-line car unless big changes were made.

You want an auto-x car you would be better off looking for an earlier RX-7 as they already are light with good balance. And there were lots of them and they can be had for cheap.
 
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