Jaguar XJ X308Saloon1997–2003

Jaguar XJ X308 Engines - The Complete UK Guide

Every engine fitted to the X308-generation Jaguar XJ - from the 3.2-litre V8 to the 4.0-litre and the supercharged XJR. Real UK costs, honest reliability data, and the timing-chain question that defines ownership of Jaguar's first V8-powered saloon. Backed by real UK XJ enquiries in 2025 [JAG-VERIFIED].

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Jaguar XJ X308 Engine Codes -
The Complete Database

Every engine fitted to the X308-generation XJ specifically - Jaguar's first V8-powered saloon, offered exclusively with the AJ-V8 engine family from 1997 to 2003.

Engine CodeFuelPowerYearsReliabilityEnquiriesAvg. Recon Cost
AJ26/AJ27AJ-V8Petrol240 bhp (179 kW)1997–2003★★★☆☆ [PROVISIONAL - pending dedicated Engine Page]- (pattern data)£4,000–£7,000
AJ26/AJ27AJ-V8Petrol290 bhp (216 kW)1997–2003★★★☆☆ [PROVISIONAL - pending dedicated Engine Page]- (pattern data)£4,500–£8,000
AJ26/AJ27 (supercharged)AJ-V8Petrol, supercharged370 bhp (276 kW)1997–2003★★★☆☆ [PROVISIONAL - pending dedicated Engine Page]- (pattern data)£5,000–£9,000
BMW 3 Series E90

Overview

Jaguar XJ X308 - Overview

The Jaguar XJ X308 is a full-size luxury saloon manufactured by Jaguar Cars from July 1997 to December 2002.

It was the third and final evolution of the XJ40 platform that had been in production since 1986, and the first XJ-generation to be powered exclusively by Jaguar's new AJ-V8 engine. Offered in 3.2-litre and 4.0-litre naturally aspirated forms, plus a supercharged 4.0-litre in the XJR and Daimler Super V8, the X308 kept the rounded four-headlamp bonnet, low roofline, sloping tail, and wrap-around rear light clusters of its X300 predecessor. It was succeeded by the all-aluminium X350 in 2003.

Key Facts

Platform

XJ40 (third and final evolution)

Predecessor

Jaguar XJ (X300)

Successor

Jaguar XJ (X350)

Sibling body styles

None - X308 is sole XJ body style; available in SWB and LWB

Market Intelligence

The X308-generation XJ is now a modern classic; enquiries are concentrated on timing-chain replacement and ZF 5HP24 transmission service, with values ranging from £4,000 for entry-level examples to £15,000+ for low-mileage XJRs.

Best & Worst Engines

Highest Risk

3.2 V8 (AJ26/AJ27)

The 3.2 V8 is underpowered for the XJ's 1,800 kg kerb weight and carries the same timing chain tensioner and Nikasil risks as its larger sibling - but with less performance to justify the ownership anxiety.

Who it's for: buyers on a tight budget who absolutely must have an X308 - but the 4.0 is a better choice every time.

Most Expensive Failure

4.0 V8 Supercharged (XJR)

A reconditioned supercharged XJR engine costs £5,000–£9,000 supply-only, plus the supercharger itself adds maintenance complexity. Timing chain failure on these engines can be catastrophic if ignored.

Who it's for: enthusiasts with deep pockets who understand the ongoing maintenance costs.

Best Value

4.0 V8 (290 bhp) - post-June 2000

The 4.0-litre naturally aspirated V8 with steel cylinder liners and documented timing-chain work is the sweet spot in the range - best parts availability, simplest architecture, and the engine that defines the X308 character.

Who it's for: the majority of X308 buyers - smooth, effortless V8 performance without the supercharger complexity.

Most Overlooked

4.0 V8 Naturally Aspirated (290 bhp)

The standard 4.0 V8 is often overshadowed by the XJR, but it delivers the same refinement and character with significantly lower running costs. A well-maintained 4.0 XJ8 with steel liners and updated tensioners is one of the best-value classic Jaguars on the market.

Who it's for: buyers who want classic V8 character without the supercharger's running costs.

View Full Engine Database

Jaguar XJ X308
Ownership Economics

EngineTypical MileageCommon Major FailureRepair Cost (Specialist)Replacement Cost (Recon)Ownership Verdict
3.2 V8 (240 bhp)80k–120kTiming chain tensioners, Nikasil bore (pre-2000)£1,000–£2,500£4,000–£7,000
Underpowered - best avoided unless exceptional
4.0 V8 (290 bhp)80k–150kTiming chain tensioners, Nikasil bore (pre-2000)£1,000–£2,500£4,500–£8,000
Best Choice - the sweet spot in the range
4.0 V8 Supercharged (370 bhp)80k–120kTiming chain tensioners, supercharger coupler£1,500–£3,500£5,000–£9,000
Premium Choice - XJR ownership costs more

The X308 rule

A £4,500–£8,000 4.0 V8 recon against a £4,000–£6,000 early X308 sits at 75–200% of the car's value - on a sub-£6,000 example, that brushes our 60% Jaguar threshold, and we'll honestly tell you to walk away. Against a well-kept £10,000+ example, the same recon drops to a routine 45–80% - a repair decision, not a financial one. Value the car first.

Key Takeaways

  • Which X308 Costs Least To Own?

    4.0 V8 naturally aspirated - best parts availability, simplest architecture.

  • Which X308 Costs Most To Own?

    XJR supercharged V8 - supercharger service and timing-chain work add cost.

  • Which X308 Is Best Value?

    4.0 V8 XJ8 - the most common, best-supported, and most characterful engine in the range.

Common Problems

AJ-V8 Timing Chain Tensioner Failure
ZF 5HP24 Transmission Issues
Nikasil Bore Lining Degradation (Pre-2000 Engines)

X308
Engine Replacement Costs - By Engine and Condition

Diesel & Petrol Lineup

Scope note: All variants listed are X308 XJ only. The X308 was the first XJ generation to be offered exclusively with V8 engines. The Daimler Super V8 was the top-of-the-range model, featuring the supercharged 4.0-litre V8 with enhanced luxury trim. In the United States, the 3.2-litre engine was not offered - all cars received the 4.0-litre V8.

Market Intelligence

Most Requested Engines (2025)

    Most Requested Variants

      Average Replacement Cost

      Most Common Failures

        Frequently Asked Questions

        Why UK Jaguar XJ X308 Owners
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