The Fairlane's standard engine was the 170 CID (2.8 L) six, but as an option, it introduced Ford's new, lightweight Windsor V8, initially with a displacement of 221 CID (3.6 L) and 145 hp (108 kW); a 260 CID (4.2 L) "Challenger" version was added at mid-year, with an advertised . The Sports Coupe option débuted mid-year and featured bucket seats and a small floor console. The trim level supplemented the Fairlane and Fairlane 500 trim levels (the 500 model had more decorative trim, such as a wider chrome stripe down the side and three bullets on the rear quarter panels). The Challenger 289 CID engine was introduced in mid-1963, with solid lifters and other performance pieces helping the engine produce an advertised ; however, it was equipped with single exhaust like the less powerful engines. This engine was coded "K" in the vehicle identification number. Exterior identification was by fender-mounted "V" badges that read "289 High Performance". That same year, station wagons arrived, called the Ranch Wagon and Ranch Custom Wagon. All 1962 Fairlanes had "B" posts despite the popularity of the pillarless hardtop and convertible styles in that era.