Better than in past but a few gotchas
Pros:
Great power for price,
Much improved handling,
Performance is easy to improve with aftermarket parts.
Cons:
Intake manifold,
Seat mounts,
Seat belt guides
Body flex.
The Bottom Line:
Buy the GT.
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Author's Review
I have 90K on my '98 GT now. Much better than previous models ('68 GT,'74 II,'86 GT) I have owned/driven. Handling is much improved but you need to be aware of several maintenance issues; most notably, the intake manifold and seat mounts. The all plastic intake manifold will, eventually, crack at the thermostat housing. Newly manufactured ones replace the plastic water handling sections will metal so don't get a junkyard replacement, buy a new one. The seat mounts are not strong enough for serious driving. If you drive hard, replace the driver's seat with an aftermarket version. One particularly aggravating aspect is the seat belt guides. The seat belts generally don't like to fully retract and when they do, they will bind on the way back out.
For a small engine, it puts out pretty good power. Additionally, there are an abundance of after market parts available for significantly improving performance. If you are willing to give up the reasonable mileage that the car gets stock, there are several bolt-on superchargers available. The transmission is fairly solid. Replacing the clutch is easy. Definitely replace the u-joints if you replace the clutch or improve the power much.
Brakes tend to get a little hot, but not so bad that I have bothered to upgrade them to performance versions. I have replaced the rotors with slotted versions and ducted air to them.
Handling is much improved from previous models and it is ok for normal driving. If you, like me, enjoy driving on twisty-curvy roads then replace the springs and install a strut mount brace. The 98 for some reason doesn't have one and you can really feel the difference. Mine had all the holes pre-drilled and tapped and it only takes about 10 minutes to install.
All in all this is a good ride for a good price; you can improve the performance significantly with after market bolt-on components. Mine is putting out 120 horsepower more than stock but is still drivable as a daily commuter. It will never be a true high performance car, but then where can you use a true performance car except on the track?
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