I understand this can also mean “take care”.
How common is it to used in Germany?
June 24, 2019
To say how common a particular phrase is in Germany is quite difficult, as it depends on so many factors. Region, in particular, is a big one: what is said daily in some parts of Germany is sometimes never said in other parts.
So I'm afraid the answer is that I cannot really say. In my personal experience, I would not find it strange to hear someone say Lebe wohl, so it is not archaic; however, you should note that it is generally used when you won't see the other person for some time.
June 25, 2019
Thank you very much for your answer.
I assume "Machts Gut" is a lot more common to use for "Take Care"?
July 30, 2019
Macht's gut! is a more colloquial and certainly a very common way to say "Take care!"
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