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There really isn't a user friendly way of doing this that doesn't involve removing the key cylinder and using a screw driver to turn the ignition switch. Is there any of the key sticking out of the switch at all? If so you might be able to extract it with a pair of needle nose pliers. Any good key tech at lowes or walmart should be able to make you a new key.
The other method is to remove the key cylinder by removing the steering column cover. It should only take a phillips and a regular screw driver to accomplish this. You can usually get a replacement key cylinder with a new key at a salvage yard...though they might want you to buy the whole steering column. In a 90's model truck though, they may not even have them any more.....
FIRST OF ALL, TURN OFF RADIO,DISCONNECT NEGATIVE BATTERY CABLE. IF EQUIPPED WITH TILT STEERING COLUMN,REMOVE TILT LEVER.CAREFULLY REMOVE THE UPPER AND LOWER STEERING COLUMN COVERS. REMOVE THE 3 TAMPER PROOF TORX IGNITION SWITCH MOUNTING SCREWS USING SNAP ON TOOL TTXR15A2 OR EQUIVALENT. GENTLY PULL THE SWITCH AWAY FROM THE COLUMN AND REMOVE THE 2 ELECTRICAL CONNECTORS FROM THE IGNITION SWITCH. WITH THE KEY IN THE LOCK POSITION, DEPRESS THE KEY CYLINDER RETAINING PIN FLUSH WITH THE KEY CYLINDER SURFACE. ROTATE THE KEY CLOCKWISE TO THE OFF POSITION THE KEY CYLINDER SHOULD NOW BE UNSEATED. ROTATE THE KEY CYLINDER COUNTER CLOCKWISE BACK TO THE LOCK POSITION, AND REMOVE THE LOCK CYLINDER. ( TO INSTALL ) CONNECT THE ELECTRICAL CONNECTORS TO THE IGNITION SWITCH. BE SURE THE CONNECTORS ARE SECURELY LOCKED IN PLACE. MOUNT THE IGNITION SWITCH TO THE COLUMN 3 SCREWS FOR VECHICLES WITH THE TILT STEERING COLUMN THE SHIFTER MUST BE IN THE PARK POSITION AND THE PARK LOCK DOWEL PIN AND THE COLUMN LOCK FLAG MUST BE INDEXED BEFORE THE SWITCH IS INSTALLED. PLACE SHIFTER IN THE PARK POSITION. PLACE THE IGNITION SWITCH IN THE LOCK POSITION. THE SWITCH IS IN THE LOCK POSITION WHEN THE STEERING COLUMN LOCK FLAG IS PARALLEL TO THE IGNITION SWITCH TERMINALS. POSITION THE PARK LOCK DOWEL PIN OF THE IGNITION SWITCH SO IT ENGAGES THE STEERING COLUMN PARK LOCK SLIDER LINKAGE. APPLY A LIGHT COATING OF GREASE TO THE PARK LOCK DOWEL PIN AND THE COLUMN LOCK FLAG. POSITION THE IGNITION SWITCH AGAINST THE LOCK HOUSING OPENING ON THE STEERING COLUMN. BE SURE THE SWITCH PARK LOCK DOWEL PIN ENTERS THE SLOT IN THE PARK LOCK SLIDER LINKAGE INSTALL THE RETAINING SCREW AND BRACKET. TORQUE THE SCREW TO 26 INCH LBS. INSTALL THE STEERING COLUMN COVERS AND THE TILT LEVER IF REMOVED. WITH THE KEY CYLINDER AND THE IGNITION IN THE LOCK POSITION INSTALL THE KEY CYLINDER INTO THE SWITCH UNTIL IT BOTTOMS. RECONNECT THE NEGATIVE BATTERY CABLE AND THE CHECK THE IGNITION SWITCH FOR PROPER OPERATION OF HALO LIGHT SHIFT LOCK IF EQUIPPED AND COLUMN LOCK.ALSO CHECK FOR PROPER OPERATION OF THE IGNITION SWITCH ACCESSORY, LOCK OFF, RUN AND START FUNCTIONS.
Assuming the vehicle starts fine once you find the "magic spot", we can rule out the starter, solenoid, relay and power. In the 1985 there are generally only 2 causes for this...
(1) The ignition switch (replace it)
(2) The wiring connections from the switch through the steering column.
The switch is the most likely, and also an easy and inexpensive repair. If the wiring connections are suspect than it may be a bit more complex as Ford ran the wiring in "loop" series and can be a real pain to trace. I suggest to replace the ignition switch and check all connections and wiring to make sure nothing is grounding out or modified by a previous owner.
The ignition switch is usually mounted to the steering column and is operated by a linkage rod.
On column-mounted ignition switches, don't confuse the switch with the lock cylinder and keys. The ignition switch is not normally visible.
On some vehicles, the steering column support has to be removed and the column lowered to find the ignition switch. On others, the switch is accessible under the dash
The ignition switch is operated by the key switch.
Blade-type connector ignition switch on steering column, 1980 and later models
Disconnect the battery ground cable.
Remove steering column shroud and lower the steering column.
Disconnect the switch wiring at the multiple plug.
Remove the two nuts that retain the switch to the steering column.
Lift the switch vertically upward to disengage the actuator rod from the switch and remove switch.
When installing the ignition switch, both the locking mechanism at the top of the column and the switch itself must be in LOCK position for correct adjustment.
To hold the mechanical parts of the column in LOCK position, move the shift lever into PARK (with automatic transmissions) or REVERSE (with manual transmissions), turn the key to LOCK position, and remove the key. New replacement switches, when received, are already pinned in LOCK position by a metal shipping pin inserted in a locking hole on the side of the switch.
Engage the actuator rod in the switch.
Position the switch on the column and install the retaining nuts, but do not tighten them.
Move the switch up and down along the column to locate the mid-position of rod lash, and then tighten the retaining nuts.
Remove the locking pin, connect the battery cable, and check for proper start in PARK or NEUTRAL.
Also check to make certain that the start circuit cannot be actuated in the DRIVE and REVERSE position.
Raise the steering column into position at instrument panel. Install steering column shroud.
Remove panel under steering wheel. Put key in cylinder and turn back to accessory position. Looking under lower part of steering column locate a small pin under the key cylinder. While depressing the pin turn the key backwards and pull the entire cylinder with key out of column. Good luck.
Not sure if this will help. I have seen this happen!!! remove the cover under the steering column and locate the ignition switch. Get a flash light. You really need a flash light to see this. Set the E-Brake real good. While watching the ignition switch. (actual SWITCH not where the Key goes) . Turn the key back and forth with out starting and see if the switch is loose. (it has 2 hex head screws in it ) and is like 4 inches long with a bunch of wires in it and mounted the passenger side of the column under dash. If you cant see it move then try removing it from park and see if it moves. The switch is mounted on slotted holes. and if it is loose it will only move with the legnth of the column or front to back of vehicle. any ways if it is loose there is a way to put it back right ... as fallows: key needs to be in the off position. loosen screws 1/2 turn each, use your finger to push the switch up towards the key but not force it. like pushing a key on a key board. Tighten both screws and check it out. This seems like a long process to go through but it costs nothing but time.