427 Side-Oiler: 1968 Mercury Cougar XR-7/GT-E

Mercury introduced the Cougar in 1967 as a more upmarket alternative to the Ford Mustang. The company raised the bar in 1968 with the rare GT-E variant. With a 427-4V monster under the hood, its performance was unquestioned. Our featured XR-7/GT-E presents superbly, with sparkling paint and a spotless interior. It could comfortably take its spot at any show, drawing crowds of admiring enthusiasts. However, its next journey could be to a new home, and I must say a big thank you to Barn Finder Barney for spotting the Cougar listed here on Craigslist in Coon Rapids, Minnesota. Rare classics of this caliber are seldom cheap, with the seller setting their price at $125,000.

There was genuine opposition at Ford World Headquarters when Mercury pitched the concept of marketing a pony car. Ford feared that Mercury would siphon sales from the Mustang, but with a different target demographic in mind, Mercury believed its request was justified. Eventually, Ford gave the green light, and the first Cougar landed on showroom floors in 1967. Our featured Cougar left the line in 1968 as a Special Order for a dealership in Torrance, California. The indications are that the dealer treated it like a “halo” model, designed to draw customers through the door. They selected a potent XR-7/GT-E variant in classy Augusta Green Metallic with a Black vinyl top. The GT-E package also included Argent paint on the lower extremities beneath the side moldings, further accentuating the appearance. The seller provides no background information, so it is unclear whether the car is a survivor or a restored classic. One thing is undeniable: it presents superbly. The paint has a mirror shine, the panels are laser-straight, and there’s no evidence or mention of rust. The trim and tinted glass are spotless, and the Cougar rolls on its correct GT-E wheels. However, the twin hood scoops confirm that this XR-7 is more than a pretty face.

Mercury played pretty hard with the 1968 Cougar GT-E. Cars produced before May received the W-Code 427-4V “Side-Oiler” V8, producing a factory-quoted 390hp and 460 ft/lbs of torque. A four-speed manual transmission remained unavailable until the company introduced the 428 Cobra Jet as a running change during the model year, and since this car features the Side-Oiler, a three-speed C6 automatic handles shifting. The GT-E package also brought suspension upgrades to improve handling, along with power steering and power front disc brakes. As with the panels and paint, the seller doesn’t indicate whether this Cougar is mechanically original. That is a critical consideration, because the GT-E would need to be numbers-matching to justify the price. It is also unclear whether it is a turnkey proposition, although nothing in the listing images or text suggests otherwise.

The theme of impressive presentation continues inside this Cougar. Trimmed in Black, the seats feature leather that looks soft and free from significant wear. The remaining upholstered surfaces are excellent, while the woodgrain on the dash and wheel accentuates the car’s luxury leanings. The dealer didn’t load it with factory options, restricting their splash to an AM radio and rear shoulder harnesses. However, the included Marti Report indicates that this GT-E, with its combination of engine and other options, is unique. Whether that adds to its potential value will undoubtedly spark debate.

Any classic with a six-figure asking price can’t really be considered affordable, meaning that the seller is pitching the vehicle to a relatively limited pool of potential buyers. So the vehicle must be special to justify that price. This 1968 Cougar XR-7/GT-E falls into that category because the company only produced 256 examples with the 427 under the hood. The presentation is superb, and this is a classic where Hagerty and recent sales results show consistency. Both suggest the asking price is realistic, but is that enough to get this Cougar a new home?