Is the Ford Mustang Still an Affordable V8 Muscle Car? The Performance Evolution of the Mustang GT 1985-2025

• August 16, 2024
• Story By
  Mike Garrett

The high performance Ford Mustang has been around for a long time. About 60 years in fact. And that history is filled with a lot of incredible cars — Shelby GT350s, Boss 429s, Mach 1s and more.

But it was in the mid 1980s on the debut of the 5.0 “HO” small block V8 where the DNA of the modern Mustang GT really began to take shape — and the car has evolved immensely in the 40 years since — where it now, once again, stands alone as America’s only “affordable” V8 performance car.

A lot has changed since the days of the Fox Body 5.0, and price tags, even adjusted for inflation, have grown a lot in the past 40 years.

Does the Mustang GT still deserve the bargain label? Let’s go back and take a look at how the power and price of the of the car have evolved from the 1980s through the 2020s.

1985 Mustang GT

The Fox Body had already been around for six years when the ’85 Mustang GT hit the market. But some old fashioned hot-rodding of the 302 small block marked the true return of the V8 Mustang into the performance car space.

Engine: 5.0L HO Carbureted OHV V8

Output: 210 Horsepower, 265 pound-feet of torque

Base Price: $9,885

Base Price Adjusted for Inflation: $29,264

Though it’s 210 horsepower may seem minuscule by today’s standards, the carbureted, stick-shift GT was a hot performer in 1985 when performance cars were still climbing out of their emissions-regulated slump. 

And compared to the price of today’s Mustang GT, its inflation-adjusted base price of the ’85 sounds like a downright bargain.

1987 Mustang GT

It wasn’t until 1987 though, that the “5.0 Mustang” as we know it arrived on the scene. Along with its modernized, aerodynamic fascias, it was also packing some serious new tech under the hood.

Engine: 5.0L HO EFI OHV V8

Output: 225 Horsepower, 300 pound-feet of torque

Base Price: $11,835

Base Price Adjusted for Inflation: $33,241

It was still the good old 302 small block under there, but the addition of electronic fuel injection not only boosted horsepower and torque, it would also help kick off a new era of high tech V8 performance.

Of course when talking about Fox Mustangs and bang for the buck, you have to mention the LX 5.0 Mustangs of the ‘80s.

Basically a base Mustang with powertrain of the GT, the LX 5.0L was the true value choice, but since it was a short-lived offering we’ll stick with the Mustang GT for the purpose of comparing generations.

1994 Mustang GT

While it still used an updated version of the familiar Fox Platform and had the familiar 5.0 engine under the hood, the new ’94 “SN95” Mustang GT brought a new body style for the first time since 1979.

Engine: 5.0L HO EFI OHV V8

Output: 215 Horsepower, 285 pound-feet of torque

Base Price: $17,270

Base Price Adjusted for Inflation: $36,894

While it came with a new look and new interior (and improved handling) the SN95 GT did not come with a power upgrade. In fact, rated output was actually down from the previous year, and when combined with added weight, the ’94 GT was a less of drag strip favorite than its predecessor.

It should also be noted that around this time the new fourth-gen Camaro Z/28 was now packing a 5.7L LT1 V8 that made 275 horsepower. But despite being outgunned in a drag race, the GT remained as popular as ever.

1996 Mustang GT

At a glance, the 1996 Mustang GT looks nearly identical to the ’94 and ’95 GTs. And if you were to look only at its horsepower and torque ratings, you’d probably think it was the same exact car.

But under the hood there was a massive change.

Engine: 4.6L Modular SOHC V8

Output: 215 Horsepower, 285 pound-feet of torque

Base Price: $17,610

Base Price Adjusted for Inflation: $35,622

For the first time since the 1960s, the old small block Ford, pushrod V8 was gone. Replacing the old 5.0 in the GT was the entirely new, smaller 4.6 liter modular SOHC V8 engine.

Though its potential would be proven in the years to come, it was easy to see how enthusiasts may have doubted the new modular V8, which was both unfamiliar and no more powerful than the old engine it replaced.

1999 Mustang GT

With the '90s drawing to a close, the SN95 got a significant update for the ’99 model year with the debut the "New Edge" Mustang body style.

Engine: 4.6L Modular SOHC V8

Output: 260 Horsepower, 302 pound-feet of torque

Base Price: $20,965

Base Price Adjusted for Inflation: $39,854

The ’99 GT was still powered by the two-valve SOHC 4.6 engine, but new cylinder heads and the other tweaks boosted horsepower to 260 and torque to over 300 foot-pounds.

This was a welcome improvement, but not enough for the GT to fend-off the LS1-powered Camaros and Firebirds in a stop light duel. Mustang buyers looking for more muscle would have to step up to the SVT Cobra.

2005 Mustang GT

2005 was one of the biggest model years in the history of the Mustang, Not only did ’05 bring an entirely new retro-styled body and interior, it also brought the first all-new Mustang underpinnings since 1979.

Engine: 4.6L Modular SOHC V8

Output: 300 Horsepower, 320 pound-feet of torque

Base Price: $25,140

Base Price Adjusted for Inflation: $41,174

Under the hood, the new S197 kept the same 4.6 liter displacement, but the new three-valve SOHC engine now made a stout 300 horsepower.

The mid to late 2000s were a good time for the Mustang, with a fresh new generation car on sale and no direct Pony Car competition, thanks to GM discontinuing the Camaro and Firebird after the ’02 model year.

2011 Mustang GT

Ford gave the S197 Mustang a significant styling update for the 2010 model year, but the big change came in 2011. In fact, this was perhaps the greatest year-to-year performance glow up in automotive history.

Engine: 5.0L Modular DOHC V8

Output: 412 Horsepower, 390 pound-feet of torque

Base Price: $29,645

Base Price Adjusted for Inflation: $42,044

Out went the old 4.6. The famous “5.0” fender badges came back — now representing the DOHC 32-valve “Coyote” V8, which made 412 horsepower — nearly 100 more ponies than the 2010 car.

This was a necessary upgrade, because by 2011 the Mustang GT once again faced competition from the new fifth-generation Chevy Camaro SS but also from the reborn Dodge Challenger as well.

2015 Mustang GT

2015 was another huge model year for the Mustang in general. It left behind the old S197 platform, and with the entirely new S550 platform, for the first time all Mustangs would have an independent rear suspension.

Engine: 5.0L Modular DOHC V8

Output: 435 Horsepower, 400 pound-feet of torque

Base Price: $32,300

Base Price Adjusted for Inflation: $43,166

Changes to the 2015 GT were less substantial under the hood. The 5.0 Coyote V8 was still there, though it now made 435 horsepower — which helped it make up for the weight gain that came with the larger, more refined S550 platform.

Out on the market, the GT continued to face stiff competition from the sixth-generation Camaro SS and the new Dodge Challenger R/T Scat Pack with its powerful 6.4 liter Hemi V8.

2018 Mustang GT

The S550 Mustang got a small refresh for the 2018 model year, and with that came some nice upgrades for Mustang GT buyers.

Engine: 5.0L Modular DOHC V8

Output: 460 Horsepower, 420 pound-feet of torque

Base Price: $35,190

Base Price Adjusted for Inflation: $44,342

The 5.0 Coyote V8 was reworked to deliver 20 extra horsepower and could now be revved all the way to 7,500 RPM — helping it to keep pace with its Chevrolet and Dodge rivals.

The biggest aspect to note looking back at S550 Mustangs is how low non-inflation adjusted prices seem. Considering this was less than 10 years ago, you get a good example of just how much car prices in general have climbed — along with seemingly everything else we buy.

2024 Mustang GT

Finally we get to the current Mustang GT, which once again finds itself as the lone American Pony Car/Muscle Car offering now that the Camaro and Challenger have both been put out to pasture.

Engine: 5.0L Modular DOHC V8

Output: 480 Horsepower, 418 pound-feet of torque

Base Price: $41,495

Less of a ground-up redesign and more of heavy update to the S550 car, the new Mustang GT’s Coyote V8 once again gets some performance improvements with output climbing to 480 horses.

But what about value? Indeed the MSRP of today’s Mustang GT certainly seems expensive when compared to the inflation-adjusted prices of the cars from the ‘80s and ‘90s.

But when looking at the adjusted MSRPs for the later cars, it’s more clear that all vehicles have gone up in price rapidly over the last 5-10 years and not so much that the Mustang GT has become uniquely unaffordable.

To put it another way, the average transaction price for a new vehicle in America right now is about $47,000 — and the fact that you can still go buy 480 horsepower V8 Mustang for comfortably under that, is a big deal.

Most importantly, in a time when automakers (looking at you GM) have abandoned the Pony Car/Muscle Car altogether, we have to commend Ford for continuing to offer a brand new V8-powered, rear-drive performance car with a realistic price tag.

Here’s hoping this lineage continues and you can still buy a brand new V8 Mustang for many years to come.