Went to start my 1999 XK8 and the key would go in the ignition and the steering wheel would retract, but was unable to turn the key to start or accessory.
Battery seems to be up, I locked and unlocked the car with the key with no change. Put a charger on, but don’t expect that to help. Does this have anything to do with the alarm system?

 

Maybe the key is worn a bit, use another key. (please say you have a spare)

 

Tried my second key…keys both work on doors.
Thinking it could be an ignition switch,

 

Sounds like a mechanical fault with the lock assy.

 

Any suggestions if it is a mechanical fault?

 

Is the steering lock engaged? It can make the key hard to turn. You need to "help" the key by turning the wheel a bit left or right to relieve the pressure.

And yes, this was subject of the first call with my teenage son after he went out with the car on his own the first time.

 

You were 100% right. I’ve never had the steering wheel lock issue on this car before (have had it for 9 years), it’s a 70 foot straight drive into my garage. I’ve had that experience on my other cars in the past, but always when I’ve made a sharp turn prior to shutting off and I’ve always moved the wheel back and forth to unlock.
🤦🏼‍♂️ Thank You for pointing out what should have been obvious to me.

 

You might want to put some graphite lube on the key and work it in the lock mechanism a little while you're thinking about it.

 

Yep, and powdered graphite is best. Spread a dab on the tip of your key, then insert it into the lock cylinder. Pull the key out and repeat once more....