The newest mustang is nice. I like it.. but it guzzles gas like no tomorrow. And you know gas prices these days.. at least here in Southern California. I drive a 2009, 2-Door Accord black color, and I love it. It really suits me. Cost me $24k after I pestered the salesman to death. I think $35k is a bit too much for a Mustang. It's an American car. It won't last long, and parts will be hard to find to fix unless you buy parts brand new.. which will cost you a pretty penny. Going Japanese would be smart. At $35k, you might as well get the base priced Lexus IS 250. Drives like a dream. But you're 21, but you're only getting older. Gotta think smart.
I think the Civic SI would be your best bet. Great on gas, about 35 mpg or more. It drives real nice. It's a really nice practical car that looks very modern. The Civic has come a long way. Avoid any used European cars... because you will be fixing that thing soon, I promise you and European car maintenance costs a fortune.
Yes, your parents might be giving you the money to spend, but you need to pocket some of that money or give it back to them. That's between you and your parents. You don't have a career yet so I wouldn't go spending money like that. You'll get bored of the mustang quick and you'll find that having a good-paying job and a house are much more important. Keep the money to put a down payment on the house later once your career takes off and you're doing well. But this isn't sound advice is it. Go party it up and spend it all on girls? :P ;)
Other recommendations: Mazda 3 (newest model), Hyundai Sonata, Hyundai Genesis 2.0 (2 door). They don't cost a fortune and they're beautiful cars, I promise you.
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