Central Valley Classic Cars

A little later than I had hoped, but as promised, here are my thoughts on acquiring a Jaguar XK8.

First off, I’m assuming you’re interested in an early model XK8 at a discount. Either you’re limited in resources and wouldn’t be considering a British GT if it weren’t for the current price/value proposition, or you’re into restoring beautiful but worn vehicles and the money will go into the restoration, not the starting point. I’m both, which means I bought a slightly tattered first gen XK8 that I dream of restoring down the road.

My recommendations are geared towards getting a solid but not perfect car at a price below your average “reasonable” car. If you’ve got a bit more means and you want an XK8 you don’t have to worry about, fuss with, or spend on correcting known issues, get the newest, cleanest, lowest mileage XK you can afford. At least a 2003+. Get the XKR. You can still apply the general “Rules of Thumb” below, but you won’t need to worry about the timing chain, the transmission, or cylinder sleeves and you’ll have more horsepower… and the seats will be more comfortable.

But if you’re thinking less-than-$20k rather than well-over-$20k, you’re still in it. Read on…

Think First (Research & Planning)

A car purchase is a big deal. A little planning is warranted.

Know what you want, what the market has, and how the two match up. Set your price range. Identify what are absolutes and what are variables. For what is a variable, assign a monetary value (ex: want with replaced timing chain tensioners, but will consider paying $1500 less for car with original tensioners). Identify mechanics that can do inspections in your area.

Be aware of the price difference between a private seller purchase and a car dealership purchase, both price and expectations. Note the difference between a Jaguar dealership and an unassociated used car dealership (I’m not a fan of independent used car dealers, but there’s probably good ones out there that don’t deserve the bad rap – maybe check the BBB if you find one with a car worth looking at).

Things to Look For

Rules of Thumb:

• one owner car
• low mileage/non-rush-hour highway miles better than city/traffic jam miles
• dealer serviced, serviced by Jaguar Certified mechanics
• all service records intact
• garaged, well maintained

Special considerations:

• Timing chain tensioners replaced
• Post nikasil engine (after 2000), signs of compression reduction
• If it’s high mileage, have all services been done on schedule? Has the 100k mile service been done?

Get a CarFax subscription. With the VIN, you can see ownership and service history, title problems, and reported accidents or damage. This, of course, won’t include anything unreported.

Inspect and test-drive the car. If you can’t, CarCheck offers an inspection for around $150. They’ll send someone out to the car who will meet with the owner, take pictures of the car, drive it and document the basic functionality and condition of the vehicle (this is not a substitute for an inspection by a mechanic).

The Most Important Step

If the car seems like a keeper, let the seller know you’re serious and arrange an inspection by a mechanic who knows Jaguars. If it makes sense to negotiate the price or other sale logistics first, you can always do so, stipulating that the deal assumes the mechanic’s inspection will prove satisfactory and the deal is off if the inspection doesn’t happen or reveals an unknown or undisclosed problem. An inspection will probably cost you an hour of a mechanic’s time. A Jaguar certified mechanic is going to charge more for an hour than most mechanics. Hills Motors rate is $120/hour.

A good thing to have the mechanic check is the top timing chain tensioner. It’s major work to get to the lower one, but not too hard to get a peak at the top one, which is more likely to be the one to crack. Also, if you have any reason to suspect a nikasil problem, you can ask for a “blow by” test. I’ve asked around, and none of the Jaguar experts/mechanics that I know in California have seen any of the nikisil related problems, so it doesn’t seem to be an issue in this region. If the car doesn’t have problems related to it now, it’s not likely to develop any thanks to better fuel regulations.

What to Expect of the Market

As I’ve stated before, it’s a really good time to purchase an early XK8. Price and selection are going to differ by area. Not surprisingly, you’ll find more in metropolitan areas.

There are a number of web sites that can help you find car listing in your area:

• craigslist:
  http://sfbay.craigslist.org/search/car?query=xk8
• cars.com:
  http://www.cars.com/go/search/search_results.jsp?ct=22&tracktype=usedcc&searchType=21&mdnm=XK8&mknm=Jaguar&rd=50&zc=94010&makeid=22&modelid=242
• AutoTrader:
  http://edmunds.autotrader.com/fyc/searchresults.jsp?search_type=used&distance=50&address=94010&make=JAG&model=JAGXK8

And Kelley Blue Book can help you get a sense of fair market value:
http://www.kbb.com/KBB/UsedCars/PricingReport.aspx?YearId=1997&Mileage=100000&VehicleClass=UsedCar&ManufacturerId=23&ModelId=159&PriceType=Private+Party&VehicleId=7955&Condition=Good

Factor In the Hidden Costs

Don’t forget to factor in the service and maintenance costs that can be expected with a given vehicle. There’s the premium for a Jaguar certified mechanic with AJ-V8 experience to consider. You can probably find a good non-Jag experienced mechanic who can do a good job for you, but it may take a bit longer to figuring out and dealing with aspects unique to Jaguar (the V8 is pretty manageable, the transmission’s a ZF also used in Mercs and BMWs, breaks and suspension are fairly straight forward, but the electrical, while better than in the pre-Ford days, is still a bit creative).

So, a car with multiple fluid leaks might take a pretty penny to clean up. And the tranny doesn’t have the best reputation after 100k miles, especially if it’s been popped from reverse to drive a bunch. It might be appropriate to set aside money for a replacement. The previous owner of my car had it replaced with a discount rebuild for around $3000. My brother didn’t want to risk a discount rebuild and went the highly reputable path for over $1000 more. Hills said the job could be $3200~$7500 depending on where the transmission comes from and who you have do the work.

And with the power of a V8 also comes noteworthy fuel usage. The 4.0 V8 XK8 has a city/hwy fuel economy rating of 17/25mpg. I do a fair bit of both and average 20.5 mpg overall. And it’s a premium gas car. Though it’s a great drive in just about all conditions, I, personally, wouldn’t recommend this car as a daily commuter.

Still a Deal

But in the end, I think we’re still talking under $20k. If you find a good condition 100k mile 97 being sold by a private owner, you could drive away for around $10k, then stop in at your trusted mechanic’s shop and put down $1200 to have the top timing chain tensioner replace, and set aside $4k for a new transmission and another $2k for unknowns (or gas). That $17,200 and a chance the $6k in the bank will be earning interest for the foreseeable future.

UPDATE (8/19/2008): I’ve added a couple more examples found on craigslist.