Since I first saw an XK8 I always wanted one. The thing is that I am not the sort of person to spend $80,000 on a vehicle, even though I could afford it. I was riding down the road early last year and saw an XK8 in a used car lot with a sign on it for $13,500. It looked very good from the highway. I went back to see it a few days later, and it was really a piece of junk. The odometer said 170,000 miles but the salesman told me that that did not mean anything, since they had replaced the dashboard with one from another car and that was the one with those miles. I asked him how many miles were on the car that I was driving and he said, "Somewhere around 110,000." There were a lot of things on the car that did not work, and there was no way that I was going to buy this vehicle. That did, however prompt me to start looking for other XK8s. I was still surprised at how a car that had sold for almost $80,000 was now available for $16,500, eight years later with only 29,000 miles, and in mint condition. I looked at other cars which were similarly priced in 2001, such as Corvettes and Vipers and so forth, and they had retained their value in a factor of 2-4 times compared to what the XK8 had. I could only assume that for the most part, a lot of people who had bought XK8s had bought them as toys, and not daily drivers, and that the downturn in the economy had forced them to sell them. (that was the case with the one that I bought) My other thought was that the reputation that Jaguars have of being high maintenance also hurt the resale value. What do you guys think are the reasons for such a high depreciation in the value of these remarkable automobiles? (I am not complaining, mind you, as I would not have one otherwise.)

 

Your post is almost a mirror image of my tale that ended up with my buying my XKR. Here is the (reasonably) short version. After dealing with 13 years of complaining from my wife about my Corvette, I agreed to get rid of it if there was something else that I could get excited about buying. At the time I started looking (2008) we both liked the BMW 335i Coupe and the recently introduced Infiniti G37 Coupe. While looking at both of these it became apparent that by the time I left the dealer with either of these, I would be spending in the high $40K range which just seemed ridiculous, particularly given that my 95 Corvette was still more exciting to me than either of these.

The first car I recall falling in "love" with was the 1962 XKE I saw at the New York Auto Show as a kid. When the XK8s came out of course I instantly loved those but never dreamed of owning since the price was in the $80K range--far far above what I could ever afford.

Back to 2008--across the street from my office was a car dealer that specialized in sports cars and "exotics". There was a similar vintage Corvette on the lot that I wanted to look at so that I could get an idea for what I should price my car at. There were also a few XK8s in the lot that I tried to resist looking at since I figured a car that sold new in the neighborhood of $80K must still be untouchable. Nevertheless I meandered over to a 2000 or 2001 convertible (I forget the year) and was astounded to see the asking price was about $20K!! I thought this must be a fluke and the car must be either extremely high mileage or maybe a salvage vehicle. It was neither. That is when I started researching other local dealers and the internet and discovering how resale pricing on these cars had plummeted.

I did enough research with local mechanics and lurking around forums like this to end up feeling comfortable about buying a used XK8 or XKR. I was pleasantly surprised to find that for what I was willing to spend ($40K or less) there were plenty of 2 or 3 year old low mileage models available in southern California, and I was lucky to find a very low mileage pristine 2005 XKR at a great price from a private party about 3 miles from my house.

I do not think these cars are alone in taking such a hit on depreciation. I also found that 2 or 3 year old high-end Mercedes took similar hits. Corvettes keep their value (more or less) only because they were relatively affordable to begin with. And cars like Vipers are rare and exotic, hence the higher resale. Porsche has been successful in creating a legend so those stay pretty high as well.

Nevertheless, I am thrilled to be driving around in a car that, in my opinion, is far superior to what I was willing to spend for a new BMW or Infiniti. The Jaguar will still look classic several years down the road.

Doug

 

I think many high end cars have taken a hit in resale (private owner to private owner) and right now like a lot of things, these are a buyers market. The earlier models 97/98 had some issues but from what I see that cleared up in the early 2k's. But these cars are a pain at times, HAVE FUNDS to repair these. If you are looking, try to find one that has a maint history, decent miles, etc. Read up on them in this forum. Reading here it may seem like every XK8 on the road is a POS. That is not the case. Just arm yourself with info, learn about the car, like any other you know nothing about.

 

I also believe the history of jaguar being 'unreliable' still haunts the current models as they fall so much from their original price tag. In time, however, that reputation will be changed, ever so slowly, and our cars will retain more of their value. For now, we're all enjoying the spoils of a sorted history, and may never be able to do it again in the future.

 

Low resale cuts both ways. A lot of us discovered these great cars at a young age because it was an affordable way to get a very sophisticated performance ride with that distinctive English something.

As I got older I could afford newer model Jags and now it's me that takes the hit at resale. No matter. It's worth it in terms of pure pleasure.

Then as now, I find myself standing in the garage for no other reason than to admire my current Jag or taking the Jag out for a run just for the hell of it. It's something your wife will never understand.

 

I see it this way: I'm buying a cheap toy that, eventually, and in due time (long time) might prove a valuable inversion.

The nice part of the deal is that I'm having LOTS of fun waiting for it to happen, up to the point where I don't care anymore whether it actually happens or not.

 

Sorry for my poor English. Where it reads "inversion" please quote "investment".

 

The resale value of Jaguar is a sad fact for the last 30 years. For as long as I have loved Jags their values have always dropped faster than any other luxury car. It's just something you have to live with, a fee for your love of Jaguars.
I would say that the XK8 with 170k miles that you saw is an 'untouchable'. No one with his/her right mind would buy it. I have tracked the market for quite a while and XK8s with more than 100k miles drop dramatically in price. Currently there is a dealer in Wilmington, NC (see craigslist) who is trying to sell a 2001 XKR for $12,500 for the past few month. The car has 105k miles and so far no one is willing to buy because those who know, know that it can be can of worms.
Make sure you buy 2003 or younger, that will save you a lot of grieve. I have seen nice 05's as low as 22k. Just be aware that dealers always have their cars priced for the uneducated impulse buyer. Buying from a private party is usually much cheaper.

 

I have been looking at some XK's and have found them to be priced right with decent miles. There is one that has caught my eye, 2004 XK convertible with 40k miles. Looks really nice and priced around 14g's.. I was thinking of selling my X for the XK but I dont know if I want a convertible as my DD plus I am happy driving my AWD X when the weather is bad. And the topper is that I have a Mustang convertible that I barely drive now and it sits in the garage until the weather warms up.

Maybe if I find the right XK or XKR coupe I will be more tempted to jump on it??

 

For any car I believe that the "break points" where resale takes a hit are on either side of about 70,000 miles (below, of course, being preferable) and then at about 100,000 miles. I agree that the past spotty reliability reputation is the reason that these (or any British marque) do not seem to hold resale like Mercedes of BMW. The XK8/XKR in particular are a strange niche in that someone looking to spend the big bucks on a sports car would likely go for a Porsche; someone with the not-so-big bucks would go for a Corvette--a true steal in terms of bang-for-the-buck. Others looking for luxury/sports might end up with a more "practical" car in terms of roominess like a BMW or Mercedes sedan.

Consequently, the fantastic buys like those for myself to be lucky enough to grab an $80k+ iconic rolling piece of art for less than half that price.

Doug

 

Clearly, from 2003 on these cars are as reliable and robust as most anything out there. I have friends who own porsche, mercedes and BMW and they have problems as well. Unfortunately (if you are selling) the entire XK lineage suffers from the problems that plagued the mark during the early years of it's evolution. Because of this the 2003-2006 cars are a real bargain, assuming they have been treated right. Factoring in style, build quality and driver satisfaction the cost benefit of owning an XK8/XKR (2003 forward) is definitely tipped in the positive direction. For those of you who have been tracking the sales of post 2003 cars you have noted that there are fewer and fewer listings each quater. The post 2003 cars are the smart buy if you want few problems, a reliable ride and classic style.

Enjoy the road ahead.

Tim V.
2005 XKR Coupe.

 

Low resale value=Great deals for the people in the know... What is bad is the people who bought new and are looking to trade them in for something else.

This also goes for the XJ's who had a high MSRP but now can be found for less then 30g's...

 

I agree with goldlion as I was wondering already why there are so few 03-05 models on the market, compared to a flood of 97-02. And it seems that a lot of people who own those early jags only for a few years and then resell them when they get tired of paying for repairs.

 

Not sure where the pre 2003 unreliable reputation is coming from, I have an 02 that seems pretty rock solid to me. At least, at 50k miles, I have had not issues and from the service history (which came with the car) only real problems seem to be interior mechanical (seat motors and locking mechanisms) rather than engine or suspension or tranny issues.

I understand that there is a plastic part inside the engine (sorry I am not mechanical) that tends to wear down but that issue was fixed in models prior to June 01 build (I think) and something called nickasil (sp?) which was used in the engine cylinders pre 2000 that breaks down when used with highly sulphuric fuels. Other than that though the cars don't seem to have alot of issues.

Since I got mine, I have had a ton of compliments on the car but the first question is ALWAYS reliability.

Maybe we on the board can help by talking up our positive experiences with these vehicles rather than focusing on the relatively few problems. By doing that, we can possibly enlighten a rather misguided misconception about these vehicles and at the same time help resale values.

Although admittedly, I have been able to own an amazing vehicle at a fraction of the MSRP so I have certainly benefited from Jag's spotty reliablility reputation.

Kip

 

Hi Kip,
the plastic thing you are talking about is part of the timing chain tensioner. It is made out of plastic and can become brittle over time. Once it brakes the timing chain can jump and the result can damage your engine. The 00-02 models have reinforced plastic parts compared to the 97-99 models but can still break. Jaguar offers all-metal replacement tensioners for the models 97-02. You can find lots of people here on the forum with this problem and every time I visit my mechanic he has another xk8 in his garage with a broken engine (I drive by to chat, NOT because I have a problem!) and I also see timing chain damaged xk8s for sale on craigslist once in a while. Let's hope that you are a lucky one and it will never affect your car.

Unfortunately most people only visit the forum after something fails. A happy jaguar driver does not hang out here but rather drives his Jag!!!!

 

It amazes me that XK8/R owners do not attend to the Tensioners problem before they fail. I bought my 2000 XKR in 2006 with 27K miles. I immediately had the Tensioners changed and an upgraded Water Pump installed. I vividly remember talking to a friend about the wisdom of "Biting the Bullet" and getting the work done before they failed. He agreed, but never got around to it...............and lost his engine! As far as other problems, I have never been stranded on the side of the road, or had anything serious happen to the car. I have had to replace other usual items like O2 Sensors, Purge Valve and the Overflow Tank. But I don't think that is unusual for ANY car except maybe a Lexus. (My '05 SC430 has never had ANYTHING fail yet.) Most cars have some mechanical issues and if you are forwarned (as we are) a bit of preventative maintenance goes a long way. The older XK8/R's are GREAT cars once they have their "Gremlins" attended to. If you know the history of the car, there are some tremendous deals to be found.
Brian