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For such an affordable car, the Mustang had an enormous list of options ranging from a tissue holder to an automatic transmission all the way up to three separate V8 options. First was a 164 horsepower (122 kW), 260 in³ (4.2 L) Mustang version with two-barrel carburetor based on the 221 in³ (3.6 L) "Fairlane" engine introduced in 1962. A 210 horsepower (157 kW), 289 in³ (4.7 L) version for the Mustang with four-barrel carburetion was the middle choice with the top-of-the-line engine being a thundering 271 horsepower (202 kW), 289 in³ (4.7 L) engine with a four-barrel carburetor and solid-lifter valvetrain.

The DC generator was replaced by a new AC alternator on all Fords and the now-famous Mustang GT was introduced, available with either four-barrel engine and any body style. Additionally, back-up lights were added to the car in 1965. Originally, the Mustang was available as either a hardtop or convertible. During the car's early design phases, however, a fastback model was strongly considered. When the 1965 model year production began in September, 1964, the Mustang 2+2 fastback, with its swept-back rear glass and distinctive ventilation louvers made its debut as well.

In 1984 Ford's in house performance team- SVT, or Special Vehicle Team, unveileved the Mustang SVO. Powered by a 2.3 turbocharged four making 175 hp, the SVO was targeted at the European and Japanese performance cars of the day and it's base price of $15,596 reflected it as well. But for all of it's handling improvements and performance goodies it never really caught on with the Mustang crowd and was dropped after 1986. Many people beileve that it came down to cost. For the price of one SVO you could get two Mustang GTs powered by the equally powerful 5.0 liter engine. But SVT would learn it's lesson. The high performance Mustang buyer wanted a powerful V8 under the hood and this new attitude would be reflected when the SVT team brought out the Cobra in 1993.

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