Ford Mustang Sales Are Tanking. Here's Why

Yahoo

25-03-2025

Ford is offering significant discounts on the 2025 Mustang in an apparent attempt to boost sluggish sales. The move comes after the iconic muscle car saw its sales tumble by more than 30% in the first two months of the year. Customers looking to buy a new Mustang can now get $1,000 off the EcoBoost model and $2,000 off the V8-powered Mustang GT. But are discounts enough to stop the slide?
The biggest factor behind the Mustang's sales slump is its rising price. The 2025 model year brought a $3,700 price hike over the 2024 version, with the GT alone seeing a $2,700 bump across its Fastback, Premium Fastback, and Premium Convertible trims. Then, in December, Ford raised the price again by $1,000. These increases may have priced out some potential buyers, especially as interest rates on car loans remain high.
In January, Mustang sales were down 36.4% compared to the previous year, and in February, they were down 32.2%. Altogether, Ford sold just 5,191 Mustangs in the first two months of 2025, a sharp drop from the 7,886 units sold during the same period last year. In fact, the all-electric Mustang Mach-E has now overtaken the gas-powered Mustang in sales, with Ford selling 6,841 Mach-Es so far in 2025.
While price increases are a major reason for the Mustang's declining sales, other factors are at play. Muscle cars have always had a niche appeal, and with the rising cost of living, many buyers can no longer justify spending money on a two-door coupe. The base EcoBoost Mustang now starts at $33,515 with destination, which, while reasonable for a performance car, makes it an impractical daily driver for many Americans.
The V8-powered GT coupe is even less attainable, with a starting price of $47,055 — putting it in competition with the Nissan Z, Toyota Supra, and BMW Z4, all of which offer compelling performance and modern interiors.
Weather conditions may also have played a role. The first two months of 2025 have been particularly cold in much of the U.S., which could be discouraging buyers from buying a rear-wheel-drive sports car.
To combat this decline, Ford is offering price cuts. The EcoBoost variant, which comes with a turbocharged four-cylinder engine, gets a $1,000 discount, bringing its starting price to $30,920. The Mustang GT, which remains the heart of the lineup, sees a $2,000 cut, bringing its starting price to $44,560.
With the Chevrolet Camaro and Dodge Challenger no longer in production, the Mustang is the last traditional American muscle car standing. That should give it an edge, but instead of capitalizing on the lack of competition, Ford's price hikes may have driven buyers away.
Even with the price cuts, the 2025 Mustang GT is still more expensive than it was in 2024. While Ford hopes that these discounts will bring buyers back, it remains to be seen whether they'll be enough to offset the effects of the previous price increases. A potential revival of the Shelby GT500, rumored for 2026, could inject some excitement back into the Mustang lineup. Leaked documents suggest Ford is working on a supercharged V8 model codenamed "Legend," which could draw enthusiasts back to the brand.
Muscle cars have always been about offering big performance at a relatively affordable price. But with the Mustang's rising costs, growing competition, and changing consumer habits, Ford may need to rethink its strategy if it wants to keep the legend alive.