Overview: Why the 1968 Mercury Cougar XR-7 Stands Out

The 1968 Mercury Cougar XR-7 took the successful Cougar formula—long hood, short deck, hidden headlights, and sequential rear turn signals—and wrapped it in a more refined, European-inspired interior. Positioned above the Ford Mustang in the Lincoln-Mercury lineup, the XR-7 aimed at buyers who wanted pony-car style with extra comfort, quieter road manners, and upscale trim.

For 1968, styling updates were subtle while safety features and engine choices expanded. Mid-year brought big-block excitement with performance options that transformed the XR-7 from a gentleman’s cruiser into a serious street contender.

What the XR-7 Package Added

• Uplevel bucket seats (leather/vinyl), door-panel trim, and additional sound deadening
• Wood-grain dash with aircraft-style toggle switches and full round gauges
• XR-7 badging, unique exterior details, and interior courtesy lighting
• Available center console, tachometer, styled steel wheels, and performance axle ratios

Engines & Performance

The 1968 Cougar XR-7 could be ordered with a range of V8s, commonly including the 302 small-block, the 390 big-block, and—on late 1968 cars—the legendary 428 Cobra Jet. Transmission choices typically included a 4-speed manual or a smooth automatic.

Suspension tuning favored a balanced ride with confident handling. Power front disc brakes, limited-slip differentials, and heavy-duty cooling were popular options for spirited drivers.

Key Specs (1968 Mercury Cougar XR-7)

Buyer’s Guide: What to Inspect

1. Hidden headlamp system: Verify door operation and vacuum/electrical components.
2. Sequential tail lights: Check the sequencer, wiring, and bulb sockets.
3. Rust hot spots: Lower fenders, cowl, floor pans, trunk, rear quarters, and torque boxes.
4. XR-7 interior: Inspect wood-grain appliqués, seat upholstery, dash pads, and switchgear.
5. Drivetrain correctness: For collectible value, confirm engine and transmission codes match the VIN/data plate.
6. Suspension & brakes: Bushings, ball joints, leaf springs, and (if equipped) front disc components.
7. Documentation: Build sheets, Marti Report, and original sales paperwork add value.

If you’re cross-shopping, see our guide to the 1967 Cougar XR-7 and the 1969 Cougar XR-7 for year-to-year differences.

Market Values & Collectibility

Well-kept driver-quality cars remain attainable, while top-condition XR-7s—especially those with documented big-block power—command a premium. Originality, factory options, and color combinations (e.g., Augusta Green, Cardinal Red) influence prices. Rarer performance packages move the needle most.

Ownership & Maintenance Tips

• Upgrade lighting relays and wiring for reliability while preserving original appearance.
• Refresh suspension bushings and steering components to restore factory ride/handling.
• Use ethanol-safe fuel system parts and keep cooling systems in top shape on big-block cars.
• Source XR-7-specific interior parts early; the best pieces sell quickly.

Looking for parts? Check our Mercury Cougar Parts Guide and Classic Car Insurance Guide for insurer tips and agreed-value policies.

FAQ: 1968 Mercury Cougar XR-7

Is the 1968 Cougar XR-7 a good investment?

XR-7 models with strong documentation and desirable engines tend to appreciate steadily, especially in original or correctly restored condition.

What’s the difference between a standard Cougar and the XR-7?

The XR-7 adds a premium interior, additional gauges, wood-grain trim, unique badging, and popular comfort/performance options.

Did the 1968 XR-7 offer the 428 Cobra Jet?

Yes—late in the 1968 model year, select cars could be ordered with the 428 Cobra Jet, making them particularly collectible today.