Welcome to another edition of What Could Possibly Go Wrong, the series where we explore whether the exotic used car we all spot in the classifieds — priced the same as a sensible used car — will end in financial ruin or prove to be a fantastic bargain.
The cars covered here commanded hefty price tags when new, but thanks to heavy depreciation, they can now be found for less than a used Ford Fiesta. It’s certainly food for thought and worth considering if you’d like something a little different and dripping with prestige. After all, these cars often feature powerful engines, premium interiors, strong performance, and eye-catching styling. They’re also a little bit different – and very endearing picks.
This week’s car was the go-to choice – albeit not in such a racy spec – for several Prime Ministers. But don’t let that fact put you off: a mechanically sound example is a stone-cold future classic.
The coolest big cat of them all?
With air suspension, a supercharged V8 engine, an aluminium body, and all the finest mid-noughties in-car entertainment, it’s no surprise that alarm bells ring when you realise these can be found for as little as £2,000. That does make it extremely good value for money, though, and if you find one in good condition, it should easily offer thousands of mechanically sound miles.
There aren’t many cars that can offer the performance or refinement of the Jaguar XJR for a similar price. In a market where tidy used hatchbacks dominate, an old-money Jaguar with walnut burr and 395hp at its disposal is rather tempting.
One of the biggest problems with luxury cars of this nature and age is the maintenance costs. While the XJR wasn’t as immediately complicated as the likes of the BMW 7 Series it competed with, it’s still a thirsty, ageing car with expensive consumables. In short, it’s not a car that can be run on a budget.

Parts supply is reasonable but can become costly. As the XJR’s engine (the AJ-V8) was widely used, servicing kits are easy to come by and will set you back about £45 for a simple set of filters. XJR-specific parts will cost you a lot more, though. A set of genuine Jaguar front brake discs is £580, a single Xenon headlamp unit is £1,500, and a new radiator is £1,600. Making sure you buy a sorted example is paramount, given these prices.
As for rivals, a Mercedes-Benz S63 AMG of a similar vintage offers equally tyre-shredding performance for similar money. It’s not as classy as the Jag, and the interior is packed with aged technology that’s more of a burden than a benefit nowadays. In its favour, it has an extra 110hp and an extra two litres of engine capacity.
A more modern alternative for your money would be a tidy Jaguar XE. Don’t expect the same glorious sounds or sheer luxury, but you can pick up a well-maintained example of this sweet-handling, nicely equipped saloon for a similar price to a well-sorted XJR. The XE should prove to be more reliable too.
To find out more, read our full Jaguar XJ (2003-2008) review
Pros
- Punchy perfromance
- Supremely comfortable
- Good used part supply
Cons
- Expensive running costs
- Expect high mileage
FAQ: what you need to know about a used Jaguar XJR
-
how much does a used Jaguar XJR cost?
The most threadbare examples of an XJ R will set you back as little as £2,000 but will be total sheds at this price. Push the price up a fair whack to £7,000 and we’d be tempted to say go ahead if you can tick off the areas to watch listed above and live with a high miler. Push past £10,000 and you’ll be looking for a tidy example with long list of work carried out.
-
How much did a Jaguar XJR cost new?
According to our records, the Jaguar XJR hovered around the £60,000 mark for the length of its production run.
-
How to buy a used Jaguar XJR
Have I convinced you? If you want to enjoy the majesty and performance of a Jaguar XJR then here are five essential spots to inspect to avoid buying a lemon:
• Engine timing chain. The big one, and potentially fatal for the engine if ignored. The plastic timing chain tensioners will degrade over time and if they fail it can destroy the engine. All XJRs should have receipts for new tensioners, walk away if there’s no evidence it’s been done.
• Air suspension. Like a lot of cars of this era, the air suspension delivers sumptuous ride quality but leaking airbags, broken compressors or dodgy sensors can all led to a saggy Jag and poor ride quality. Repair costs can become astronomical quickly.
• Bodywork. Jaguar made a big song and dance about the aluminium body on the XJR which is light and strong but expensive to repair. Look for straight panels and no signs of dings, especially if you’re spending £10,000 or more.
• Rust. Yes, while the body is aluminium and resistant to rust, there is steel lurking underneath for important bits like subframes, suspension arms and mounting points. These are all known to rust so make sure to have a good poke around.
• Differential. When test driving an XJR, listen for any noise from the rear that sounds clunky. This could be a sign of tired driveshafts or a doomed differential. Again, it’s a costly repair, especially if the differential needs a re-build.
Should I buy a Jaguar XJR?
Not for £2,000, any Jaguar XJ R this cheap will need a gut-wrenching amount of work to be road-worthy. Triple the price to £6,000 and I’d be more inclined to say yes. It’s certainly faster, more striking to look at, and more comfortable than a similarly priced sensible used car, but also thirsty and costly to run, something to bear in mind.If you can live without the supercharger whine, a regular V8 XJ of this era offers the same grace but for a lot less. The running costs will be the same though.
Just so you know, we may receive a commission or other compensation from the links on this website - read why you should trust us.