The 1967 Mercury Sleeper That Hid A 320-HP FE Big-Block Under Wood Trim
This idea may seem insane at first, but stick with me here. You can skip the oversaturated Ford Mustang market with a rare sleeper car that packs a serious wallop with 320 hp stuffed under the hood. This rare muscle car may have flown under the radar, hiding stout power beneath luxury trimmings. However, it has true racing heritage and is often priced as a total bargain against comparable high-performance Mustang models of the late 1960s.
Ford Wanted To Target Luxury Buyers
As you may already know, Ford did some wild experimenting in the 1960s. Toward the latter half of the decade, the automaker decided to try to bridge the gap between the Ford Mustang for young buyers and large luxury cars like the Ford Thunderbird. It also wanted to compete against high-end rivals like the Pontiac GTO.
So, the automaker got to work building a more upscale version of the flagship pony car. However, you probably won’t recognize this car as a Mustang sibling. Ford deliberately worked to ensure that this fancy beast had a distinct style and personality. This Mercury car’s unique European flair certainly helped set it apart on the street.
It was wildly successful and even went on to rule the racetrack. However, it never gained the legendary reputation and lore that the Mustang got as soon as it arrived in 1964. The Mustang receives credit for starting a raw power revolution. The Mustang was also more affordable and accessible, while its sleeper sibling faded into the background.
The 1967 Mercury Cougar XR-7 Layers Power Under Luxury Refinement
You can refer to the 1967 Mercury Cougar XR-7 as the Junior Thunderbird or the hefty Mustang. Either way, it still brings potent power to the table. It features a FE-series 390 cubic-inch (6.4-liter) V8 engine with 320 hp and 427 lb-ft of torque. It’s important to note that this model didn’t have the separate GT package.
Rare models paired with this engine and the Ford Toploader four-speed manual transmission took things to the next level. This car can accelerate from 0 to 60 mph in about 6.9 seconds and cover a quarter mile in around 16.0 seconds with a top speed of 124 mph. The Marauder engine has a cast-iron block and cylinder heads paired with hydraulic valve lifters.
It rides on an independent front suspension with deep coil springs, a 0.72-inch stabilizer bar, and an articulated compliance strut for directional control. The rear has four-leaf low-friction springs, and the standard steering setup includes flexible rubber and fiber coupling in the steering shaft.
The Cougar XR-7’s Luxury Makes Its Power Easy to Miss
The raw performance of the Mercury Cougar XR-7 is buried under tons of luxury features that disguise this ride as a gentleman’s car. You’ll find leather-and-vinyl bucket seats paired with simulated wood-grain trim on the dashboard and door panels. The aviation-style toggle switches on the dash control accessories instead of standard push-buttons.
The mini overhead console features map lights, a door ajar warning, a seatbelt reminder, a low fuel warning, and lights. Plus, the full gauge package includes an oil pressure gauge, ammeter, and a tachometer. Last but not least, the tilt-away steering wheel moves up and out of the way as you exit the car.
This car shares the same platform as the Ford Mustang, but it features a wheelbase that’s three inches longer for a smoother ride. It also has more sound insulation for a quieter cabin. The exterior style stands out with vacuum-operated hideaway headlights that are hidden behind the distinct electric shaver grill. Plus, the XR-7 has sequential turn signals with three segments that were borrowed from the Thunderbird.
The base price in 1967 was $2,854, which was about $284 more than the Mustang. Going for a fully loaded XR-7 model increased the price to $4,500. So, it was more difficult for younger buyers to afford while being more accessible than the 1967 Ford Thunderbird, which started at $4,603.
The 1967 Mercury Cougar XR-7 Was A Massive Hit
If you thought Ford was taking a gamble with the Cougar XR-7, then at least it paid off. This car was flying off the lots despite the XR-7 package arriving late in the middle of the year. The Mercury Cougar sold 150,000 models in 1967, and the XR-7 quickly added another 27,221 sales to the overall total. It accounted for 40% of the Lincoln-Mercury sales that year. Also, the Ford Mustang sold 472,171 cars in 1967, and about 24,027 of those units were paired with the GT equipment group. The Mercury Cougar may have been more popular if it had a higher production volume, but pricing also played a role.
Automotive critics and drivers were enamored with a luxury car that didn’t skimp on power. The Mercury Cougar XR-7 ended up winning the MotorTrend Car of the Year in 1967. It is highly praised for having standard V8 power, a striking and premium design, and an upscale blend of luxury comfort and style.
Plus, the Mercury Cougar team, managed by racing icon Dan Gurney, secured four wins in the SCCA Trans-Am Series during the 12-race season. It only lost the manufacturer’s title to Ford by two points! It won at the Green Valley Raceway, Lime Rock Park, Bryar Motorsport Park, and Riverside International Raceway.
The Cougar XR-7 Is Surprisingly Undervalued
It might be a great time to scoop up a rare muscle car that has been stuck in the shadow of the Ford Mustang despite sharing some of its DNA. The 1967 Mercury Cougar XR-7 is still a sleeper in bargain form as project models are available for $3,000 to $8,000. Models in good driving condition can be found for between $8,500 and $13,000.
Cougar XR-7 models in excellent condition often cross the auction block for about $20,000 to over $40,000. Rare models with the XR-7 package and four-speed manual transmission increase the car’s value by about 30% to 40% compared to XR-7 models with the automatic transmission. Meanwhile, the 1967 Ford Mustang GT is worth about $40,000 to over $110,000 depending on quality, condition, body style, and mileage. Fastback models with the big-block 390 V8 engine often exceed the $110,000 mark. The hardtop coupe has the most affordable entry point with an average cost of $38,800.
Source: Automobile Car, MotorTrend, Hagerty
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