I have a 2002 XJR with 64,000 miles on it and it runs like a champ. you are looking at two different breeds of XJ here. the 1998-2003 have steel bodies and simpler suspension, etc. this is the X308 model. your best bet here is to get a 2002 or 2003 as by these years most of the problems were resolved. as for XJ8 or XJR, the XJR has a better transmission, better suspension, better wheels/tires, and a supercharged engine with an extra 70 horsepower. If you go for a 2004 you are looking at the X350 series, which is a taller, bigger car. it is also made of aluminum which has to be fixed by specially trained body shop workers if you get a ding. this aluminum body however makes it lighter so the X350 is quicker than the X308. one problem with the X350 is that it does have an air suspension system which I have heard is a bit tricky.

good luck with your search and If it was my choice I would go with a 2002-2003 XJR

 

02 or 03 XJR, no question. Especially if you can get the R1 package.

 

Like others have said 03 to 04 are completely different cars.

Jaguars are no different than any other used car - best to buy the latest year in the best shape of the model your budget will allow - although some older low mile garage queens are absolutely great buys. You can still find many examples with 50-60K on them.

The XJR's are standard wheelbase. If you need a larger back seat look for a VDP or a LWB model --- or the limited VDP Supercharged AKA -- "Super V8"

This is for the x308

The XJR's are nice -- especially if you get a low mile one. The shocks are expensive and it has more plumbing but they have been surprisingly trouble free. The R package brakes just add cost IMO - the standard XJR brakes are very good.

The XJ V8's are great cars with the last cars having the least problems - normally the fully loaded cars are not any more money to speak of. The Nav system is very basic and is not a buying point IMO

The only "must due" is the tensioner's in the engines affected.

 

The 1998-2003 cars are easier and cheaper to service, the R models less so.
Better looking too!

 

IMHO a 2002/3 R is a nice choice. The body has nice clean lines, the timing chain tensioners should be the updated ones (there are much better informed members who can elaborate on this) and the extra punch of the supercharger has to be experienced to see why it's preferable to the naturally aspirated version. Something to keep in mind if you're on the tall side is that 04 and later models have more headroom.