The Mustang II was born from the Pinto, which itself was intended to be a compact version of the previous generation Mustang. The car was an instant success, selling over 400,000 in its first year of 1974. Amazingly, 4 of the top 5 selling Mustang IIs are on the list of top 10 selling Mustangs by year. They may not be historically as revered as the other Stangs, but they were well-liked by consumers when sold new.
Sold as a 2 door coupe or 3 door hatchback, these cars had engines ranging from a 2.3 L SOHC inline 4 cylinder all the way up to a 5.0 L V8.
Instead of trying to compete with the dying muscle cars, the second generation Mustangs competed with the new imports from the likes of Datsun. The 1974 model won Motor Trend Car of the Year.
These cars seem to become more collectible each year. Some of the rarer models are starting to fetch some rather impressive numbers considering all the criticism they've faced over the years. If you are looking to buy one, I suggest checking on eBay, as your local used car market is probably not going to have too many Mustangs from this era. It seems very few people saved them or attempted to restore them, unlike the first generation.