Ive driven 2 98 z28's and did really like them, one an a4 vert and the other was a m6 hardtop. I have only driven 2 mustang gt's which were an 05 and 10, I liked them alot too but compared to the older ones I don't know the difference's.
But please, elaborate. Do you think the 4th generation improves after 98 or you just liked the mustang better than the lt1? I'm interested...
It's the driving feel.
F-bodies have that low seating position, a dashboard big enough to land a helicopter on, and they have a truck-like driving feel to them...never could get used to that. In addition, the seats and materials inside are terrible...even for a 90's GM product.
To me, those cars are not very fun to drive or be in for any period of time. Blasting out of a toll booth; fun. Driving to and from somewhere; not fun.
The Mustang I owned had a bit more character to it and a much better exhaust note. While the interior isn't exactly Audi-esque...it was much better than the Z28. The driving position was better, seats were more comfy, and the T-5 is a slicker shifting transmission when a short-throw is installed. IMO anyway. Heel/toe downshifting? That gets tricky.
While the Mustang does have it's issues with wheel hop, understeer, etc...so does the Camaro. Stock to stock; Mustang was just a better driver and a much more reliable car.
I purchased my Z28 with less than 30k miles on it...hated it after a month and later on a brake proportioning valve failure nearly killed me. A few years later I bought the Cobra with many more miles on it (forgot exactly), but loved that car since the day I got it and still kick myself for ever selling it.
Very simple car and in most cases, quite reliable. If you're thinking about modifying it; there isn't another car on the planet that has more OTC stuff for it than a Mustang.
Ultimately, it's your money and you may really like an F-body...plenty do. But if you're looking for a car in the $10-12,000 range that's American, RWD, and has a V8...I'd look into a 01 or so Mustang Cobra just for ***** and giggles. Good brakes, IRS, and an updated interior over the older Mustangs. And the DOHC 4.6L sounds ridiculously good.