I wanted to get a few opinions on something here.

I've always been in love with the XK8s and XKRs, beautiful cars.

Anyway, while looking around for a project vehicle I found a 1998 XK8 Convertible, dark blue with about 95k miles on it. The asking price is just under $6k. The car looks great in the pictures.

The catch is that the ad says the engine cranks, but will not start. I am assuming the worst, either Nikasil lining failure, or timing chain failure and it will need a new engine. I've looked at some engine prices, and a rebuilt, sleeved, warrantied engine is about $4k. A used, but running engine from a junkyard is a little less than $2k.

I figure at worst it would cost about $10k to get the car and get it running again. At best maybe I find something simple and the engine is basically OK, so I get it running again for $6k - $7k.

I'm pretty handy with cars, and I'm not afraid of tackling any of the work myself. As I said, I was looking for a project to work on. But I obviously don't want to put more cash into a car than it will be worth in the end.

I think I might try for a lower price, considering the right thing to do would be to go for the warrantied engine, and at $10k I am close to the price of an already runnign XK8 of that mileage.

Does this seem reasonable, or am I dreaming?

 

Sounds like the first thing you need to do is to actually find out what it will take to get it running again, as the difference between maybe some repairs to the existing engine or a complete replacement means the difference of several thousand dollars, not to mention the time and effort to replace it. Buying it without it running won't let you know how the rest of the car stands up, such as the transmission and suspension. (no road test) You very well may get the engine running and then have a slew of other repairs to make, once you start driving it. You could probably find one that is running, and in pretty good shape for the higher end of your estimate. Good luck, whichever way you go.

 

IMHO if you're looking for a great hobby project, then add up all that could be wrong as mentioned, budget for it and bargain the price down further (because the car is essentially for parts at this point) and buy it! Have at it and enjoy. At the least you'll have a lot of fun and satisfaction in solving the issues yourself. At most you get a great car in the process. Good Luck!