Nice car, and a nice price.

Issues with the Jaguar you've found:

1. Nikasil cylinder liners. These were in some Jaguar V8 engines up until
the 2000 model year. (see VIN numbers in the link below).High sulfur content
fuels erodes  liners, and eventually the engine loses all compression and
simply won't start.
2. Timing chain tensioners. In Jaguar V8 engines up to the 2003 model year,
Jaguar used plastic upper tensioners, which can crack, leading to chain jump
and potential valve damage.
3. Like timing chain tensioners, Jaguar used plastic impellers in the water
pumps in the V8. These eventually fail.

Get a blow by test to determine whether the car you are looking at is
suffering as a result of Nikasil. If not, it is likely OK -- there is far
less sulfur in fuels these days.

As for the tensioners and water pump, they will have to be replaced for sure
(upgraded metal parts are now available), and you should get quotes on the
work and deduct it from the asking price. Cost for this work in Canada (all
chains, upper and lower tensioners and guides and the water pump) is about
$2300 -- about 1000 pounds.

Here is an article on these issues:

http://www.racinggreencars.com/modern/The%20Jaguar%20AJ-V8%20Engine%20Strengths%
20and%20Weaknesses.pdf

Regards,

Alan S.
Victoria Canada

Here is the choice I have to make, it's down to two cars.   1991 500SL, 95k,
excellent condition with AMG wheels, well looked after with history,
stunning with the AMG body kit.  Dealer is asking $13k.  I have always liked
the SL series so I was just going to make an offer on this car, until I
decided to comb the classifieds one more time.  Turns out a 1998 XK8 convert
(silver/black) just came up for sale near me as well for the exact same
price as the 500SL.  Jag has 75k but no service history other than the small
amount carfax has told me (looks like it WAS serviced reguarly during its
life).  I did drive the XK8 and it runs and drives nice, but has a few small
cracks in the wood, the cupholders or whatever in the arm rest are broken,
we had to jump the car to get it started and the convertable was slow to go
up and down and needed a little helping push from me.   Beautiful otherwise.
I've owned about four jags in the past and a S1 E-TYPE currently and driving
the XK8 reminded me why I like the cars so much. It just oozed soul,
character and passion.   I've never owned an SL before but there is no doubt
in my mind that it would be the 'smarter' car to own.  This is a big
decision for me, and i'd like to hear some thoughts from a few others before
I make up my mind.  I haven't driven that 91 500SL yet but I did drive a
600SL the other day and it was a real monster.  My past DD Jags haven't been
the most reliable cars (XJS, XJ6) and I don't want to get into an XK8 and
have another money pit on my hands.  Are they fairly well put together and
reliable? What should I check for in the XK8? Any other comments?  Thanks
guys!  Cheers