I happen to have a 2001 XJ8, and it's a great car. If you would like to know the well known issues, they are - 1) Nikasil lined cylinder bores - this depends on the engine number (not the VIN). The first steel lined engine was 0008181043, and translates to 2000 August 18 at 10:43. My 2001 XJ8 engine number is below this, so I have a Nikasil engine. You can read up on it, but I think most people feel it is no longer an issue. 2) Secondary cam chain tensioners - you have the 2nd generation ones I believe unless they've been changed, mine are 2nd gen. You can research this, and you definitely want to ask the seller if they've ever been changed. 3) Thermostat and water pump - not a big deal, just make sure they've been replaced, or replace them yourself with the newer (metal impeller on the water pump) ones. If it has ever had an overheating problem, I would be wary. 4) Milky wood veneer - check it out. Some people got it all replaced under warranty. Some might not have had the problem. I have replaced or refinished some of mine, the rest is not a problem.

 

Make sure you check the wheel bearings, compression, steering pump, AC-leaks and emotionally prepare yourself for a new transmission at 75K. Nothing beats the ride or appearance however.