“Sleek with clean lines that slice through the wind.”
For 1981, Ford’s Mustang gained a “rakish” new optional T-Roof and the availability of power windows. The base seats were now reclining. Otherwise, things generally stood pat.
The 1981 Mustang’s standard powertrain was the Lima 88 bhp 2.3 liter/140 ci inline-four paired with a four-speed manual transmission. Optional engines included the Thriftpower 94 bhp 3.3 liter/200 ci inline six ($213) and a 120 bhp 4.2 liter/255 ci V8 ($263). A five-speed manual ($152 and only available with the inline-four) and a Select-Shift automatic ($349 and required with the V8) were offered. Despite being relatively light, no 1981 Mustang was fast—Car and Driver recorded an 11.2 second 0-60 time with the V8.
EPA fuel economy ratings ranged from 23 mpg with the inline-four engine and either of the two manual transmissions to 19 mpg with either the inline six/four-speed or the V8/automatic transmission combinations. With a small 12.4-gallon gas tank, a Mustang V8 owner could expect a mere 190 to 210 miles with a 10% fuel reserve.
Standard Equipment, Sub-Models, & Packages
Standard equipment on all Mustangs included dual rectangular halogen headlamps, front disc/rear drum brakes, rack and pinion steering, and 13-inch P-metric steel-belted radial-ply tires on 13-inch wheels. Inside, fully reclining vinyl high-back front bucket seats, color-keyed cut-pile carpeting, and an AM radio were included.
The notchback and hatchback (Ford insisted on calling them 2-Door and 3-Door) had slightly different standard equipment. The notchback/2-Door went for $6,171 and included color keyed rear pillar louvers, full wheel covers, and a Deluxe steering wheel. The hatchback/3-door went for $6,408 (about $24,100 in today’s dollars) and included black rear pillar louvers, Sport wheels, a fold-down rear seat, and a Sports steering wheel.
The Ghia—available as a $6,645 notchback or a $6,729 hatchback—added Ghia insignia, bright rocker panel moldings, pinstripes, dual black remote control mirrors, and 14-inch P-metric steel-belted radial-ply tires on 14-inch wheels with turbine wheel covers. Inside, Ghia buyers got the Ghia sound insulation package, Luxury color-keyed cut-pile carpeting, and a Luxury 4-spoke steering wheel.
Mechanically, the $1,588 Cobra package added a Sport-tuned exhaust with bright tailpipe extension, a Handling Suspension System, and 195/65R 390 Michelin TRX black sidewall tires on 15.3-inch forged metric aluminum wheels. Exterior Cobra features included a Black lower Tu-Tone paint treatment, a front end integral spoiler, dual fog lamps, a non-functional rear-opening hood scoop, and a rear end spoiler. Internal Cobra features included an 8,000 RPM tachometer, black engine-turned design appliques, and a Cobra medallion on the instrument panel. A 2.3 liter turbocharged engine was initially supposed to be part of the Cobra package (and showed up in some brochures), but Ford tabled it in the United States because of reliability issues in the 1980 model year. A base Cobra was $7,966—about $30,000 in today’s dollars, which is almost what a base 2025 Mustang EcoBoost fastback goes for.
Options & Production Numbers
Exterior and mechanical options for all Mustangs included tinted glass ($76), metallic glow paint ($48), Tu-Tone paint, a flip-up open air roof, a T-Roof ($874), power front disc brakes ($76), variable ratio power steering ($163), and a Traction-Lok differential ($64). Inside, Recaro high-back bucket seats ($732), a console ($168), the SelectAire Conditioner ($560), a tilt steering wheel, two different leather-wrapped steering wheels (Sport or Luxury), fingertip speed control ($132), and power side windows ($140) were available. A choice of stereos ranging up to an AM/FM stereo radio with a cassette tape player ($174) could be ordered.
Options that look weird to our 2025 eyes included a carriage roof ($644) or a full vinyl roof ($115), both for the notchback only. Notchback purchasers could also specify an Interior Accent Group, which included a Deluxe sound package, fully relining low-back front bucket seats in a higher level of vinyl, and a passenger visor vanity mirror. Black liftgate louvers ($145) and a rear window wiper/washer ($85) could be ordered for the hatchback.
Mustang sales were lower in 1981 model year than in 1980, but automotive sales were generally down due to the concurrent recession. The base car continued to be by far the most popular—with the notchback (77,458 sold) and the hatchback (77,399) split almost exactly. Ghia‘s were also divided evenly—13,422 notchbacks and 14,273 hatchbacks. Only 1,821 hatchbacks were ordered with the Cobra package, which would be gone when the 1982 model year came around—more than replaced by the GT.
The View From 2025
According to Hagerty’s valuation tools, all the money for a 1981 Cobra V8 fastback in #1/Concours condition is $37,300, with a more normal #3/Good base Mustang inline four notchback going for $12,900. 1981 Mustangs sometimes appear in the Hemming’s Motor News classifieds, on eBay Motors, and on Bring a Trailer, but the absence of an impressive stock engine does seem to hold them back compared to the 1982 and later models.
Make mine Dark Cordovan Metallic, please.
Other Mustangs I have written about include the 1980 Cobra hatchback coupe, the 1982 GT hatchback coupe, the 1983 GT convertible, and the 1984 SVO hatchback coupe. I guess I’ll have to get to the second half of the Mustang’s decade at some point.
Eighties Cars 
I’d imagine a concours 1981 Mustang Cobra to be about as common as hen’s teeth these days.
Mark, I agree. I’ve seen just one 1981 Cobra up for sale in the last five years. You see a few more of the far more popular 1980 version.
I see these Cobras as one of the last of the “decal performance” cars, along with the 1982 F-cars. By 1983/1984, performance was well on its way back. That said, I like the look, which followed the 1979 Pace Car nicely.
Thank you for your comment.