The Jaguar XK8 is a hugely popular modern classic with good owner and parts support. The most desirable are the later 4.2-litre 400bhp examples, but there's nothing wrong with early 4.0-litre 5-speed. For this kind of price, you'd want it to be showing around 80,000 miles on the clock with a full service history and in good condition. As soon as they get to lower mileages (around 30,000) people often ask significantly higher prices. The price sounds about right for a dealer - you could probably find the same car for about £7000 in the classifieds. Make sure you drive as many as you can though as it will give you a better idea of what a 'good' and 'bad' one is. Be sure to do your homework: early engines got Nikasil liners and were recalled and replaced, they often carry a badge saying 'Genuine Jaguar Exchange Product'. Uneven tyre wear hints at suspension problems, while knocking from the steering column means a replacement later item is probably on the cards. Bodywise, look out for peeling paint laquer and cracked headlight, as well as rust on the sills and wheelarches. Inside the car, driver's seat bolsters can wear as can the veneer on the dash, but your main concern should be electrics - check that everything works and that the frameless windows drop and rise as they should. Finally, make sure the car has both keys as reprogramming a spare can be expensive.