One of the 2001 Jaguar XJ8 engine problems reported is that the plastic timing chain tensioners may fail and cause engine damage. A failed water pump is the next common problem reported. Because the timing chain tensioners were made from plastic, they can fail prematurely and cause serious engine damage. A noticeable engine noise while idling or during a cold start can indicate a timing chain tensioner problem. The engine noise may also be accompanied by a rough or uneven engine idle.When the water pump fails, it will not be able to circulate coolant through the engine block. This results in an overheating situation and if not repaired or replaced quickly, can cause additional engine damage like cracked cylinder heads, pushed head gaskets, or burnt pistons.
Jaguar upgraded the cam tensioner to metal in August 2001.
They switched to an aluminum body in 2003. That model your looking at has more luxury features such as trays in the back of the front seat that folds down for the passengers in the back.