Central Valley Classic Cars

It seems it is a great time to acquire an early edition Jaguar xk8, maybe even one in less than ideal condition at a further discount, as a grand touring project car.

New XK8s rolled off the lots in late 1996 for $65~70k. Now, one with over 100k miles has a “private owner” Kelley Blue Book value of less than $9k. Yet, the no. 1 reaction I get when rolling up in my XK8 coupe is “how did you afford that?” Part of this is the similar appearance of a 1997 XK8 to a 2006 XK8 and only subtle differences between it and the supercharged 2006 XKR, the latter still being a $50k+ car on the used market.

But it’s not some freak mystery the first year model is valued so low. There are well documented issues a buyer should consider when looking at a 97 XK8 purchase.

So Let’s Start with the Bad News

The 1.0 version of a car often has a few kinks to work out. Some stuff gets rushed out as the deadline to delivery approaches. Other stuff nobody really knows or expects until the production car gets put through the passes of an everyday driver. Not only was the XK8 brand new in 1996, but also was the AJ-V8 engine, the first V8 in Jaguar’s history.

• Timing chain tensioners – the AJ-V8 has a single-chain timing design. The original timing chain tensioners had plastic coverings that, over time, can become brittle and crack or break under stress, causing slack in the timing chain. This slack can result in really bad things to follow, like nasty piston/valve stuff that spells “engine rebuild”. Tensioner design was refined over the years, but not until 2005 was is replaced with an all metal alternative. $4000 to redo the whole timing setup, but if all seems good, you can probably get away with just replacing the top tensioner (about $1500 job). More info…
• Transmission – in XK8s though the 2002 model, the AJ-V8 is fitted with a “sealed for life” ZF 5 speed transmission. This transmission is silky smooth and features a “sport” setting that adjusts the shift profile to more aggressive gear holding. 2003+ it’s a 6 speed ZF, still “sealed.” The “sealed for life” aspect means no hassle or maintenance for the life span of the transmission, but I’ve also heard rumors that the life span of this transmission is only 100k so you can expect to replace any time after that. A Jaguar mechanic once told me they should be good for longer than that, but they’re really designed for an XJ driver and experience durability issues under hardy GT driving on open roads (which the rest of the XK8 IS designed for). $2500 to $4000 to replace with a rebuilt transmission depending on where you get the transmission.
• Nikasil cylinder chambers – to save on weight, Jaguar replaced conventional cylinder bore sleeves with a nickel silicon carbide coating in the AJ-V8 engines built through 2000, at which time enough evidence that these linings could break down and degrade compression had accumulated that Nikasil was abandoned for traditional cast-iron cylinder liners. Nikasil lining erosion is most likely due to sulfur in gas and is less likely a problem now. Problems, when experienced were mostly regional (where gas had higher sulfur ratios). More info…

And, of course, there are some typically big maintenance costs associated with a car with as many miles… some about due, some maybe deferred and part of the reason for the current owner wanting to unload the car.

• 100k mile service – selling point to the AJ-V8 is that it has few really big services, 100k mile service being the big one. Really big, like upwards toward $1000.
• Water pump replacement – often goes on sporty cars around this milage range. $300~$400 to replace.
• General decay of plastic/rubber trim and accessories – many of these cars have been well cared for, some haven’t, and in either case, 10 years of sun, wind and elements can show on the less durable parts – and not all of the car is metal, walnut, or leather.

But There’s Plenty of Good News, Too

A lot more of the 1997 AJ-V8 engine is solid than is buggy. Same is true of the 1997 XK8 overall. With the timing chain tensioners replaced and the transmission babied and basic service maintained, there seems no reason not to expect these engines to be problem free for 200k+ miles. Jaguar overhauled the engine for the 2003 series XKs and then again for the 2007 series, but at the core, we’re looking at the same workhorse. The engine has proven itself well and replacement parts, both used and new, remain available.

The body design is beautiful and timeless. Period. It pays respect to the Jaguar sports car heritage, but does not do so clumsily or with overtly retro tones. I’m a bigger fan of the coupe, which is aesthetically magnificent, but the plentiful convertible can surely be enjoyed in California where the sky is often clear and the air is dry and breezy.

The car is actually quite reliable. Ford gets knocked a lot for ruining Jaguar. It’s an unfair accusation and an unfounded judgment. Jaguar had been doing a grand job of this itself for over a decade when Ford acquired them in 1988. People make primarily two claims when they blame Jaguar woes on Ford: part sharing and design muddling. Even if these were the causes of Jaguar’s languishing reputation of geriatric-sub-par-ness, it still would have little validity as a complaint against the XK8. There are only 2 Ford parts in the 1997 XK8: a plug in the oil sump and a chip in the key-less entry remote. And the Geoff Lawson team design is pure Jaguar (yes, there are feature elements that also appear on the Ford Taurus, but this is not the Jag looking like a Ford, but an unfortunate attempt at the opposite, and anyone basic aesthetic discernment is not going to mistake one for the other).

What Ford did do for the XK8 is spend the proceeding years addressing many of the operational issues that caused the reliability problems that had plagued the previous generation Jaguars. Additionally they established new standards for electrical implementations correcting yet another notorious Jaguar problem. It was no longer a likelihood that a Jaguar’s windows would all lock at half-mast and the dash console burst into flames.

Full Disclosure: a Little More Bad News

OK, to be fair, there’s more to consider. Even with refinements in process by Ford, these cars are NOT Fords. I’m repeating this because it’s a good thing (these cars are special) and it’s a bad thing (don’t expect your average Ford mechanic to work on these). Service and maintenance on these cars will cost you more. In the S.F. Bay Area, there seemed to be plenty of Jaguar certified shops (I recommend Hills Motors in San Mateo), and my choice of dealerships within 15 minutes in either direction. In Atwater, I’m still looking… nearest dealerships are a little over an hour in either direction.

Conclusion

Even with the downsides, we still find the average early model XK8 a solid and beautiful grand touring car, with some controlled maintenance expenses, at a an amazing discount. It’s a great driver, comfortable and smooth about the country side or downtown, but also torquey and road hugging when you ask it to be. It’s a good ways off from being a collectible (and quite honestly may never be a collectors must-have jaguar), but it’s a lot of car for the money and the value for a good quality specimen will eventually go up (I’m not recommending this as an investment, just saying that if you will enjoy owning and caring for this car, you are going to get your money’s worth).

I plan to follow up soon with buying recommendations based on my own experience and what I’ve learned since. In the mean time, here’s the original Top Gear review of the XK8:

UPDATE (8/2/2008):

I’ve posted my recommendation on purchasing an XK8.