The XJ40 was a monumental step for Jaguar, replacing the beloved but ancient Series III XJ6 in 1986. Developed over more than a decade, it featured a new, more angular design, the advanced AJ6 inline-6 engine, and on early models, a distinctive digital instrument cluster. This was Jaguar's attempt to build a thoroughly modern luxury sedan to compete with German rivals, and it represented a huge investment for the then-independent company.
Collectors are attracted to the XJ40's unique 1980s character and its affordable entry price. Later cars, built from 1990 onwards after Ford's acquisition of Jaguar, are often preferred for their improved build quality and more reliable conventional instruments. The most desirable models include the luxurious Daimler and top-trim Sovereign variants, along with the rare, JaguarSport-tuned XJR. While the average price remains under $10,000, the market is beginning to recognize the best low-mileage examples, which are seeing significant appreciation.
Buying Tips
- Check for rust thoroughly. Key areas include the sills, wheel arches, floor pans, and the metal around the front and rear windscreens.
- Electrical issues, especially on pre-1990 cars, are common. Test every switch, light, and gauge, paying special attention to the Vehicle Condition Monitor and the digital dashboard if equipped.
- The AJ6 engine is durable, but look for signs of a failing head gasket, like coolant mixing with oil. Deferred maintenance is a red flag.
- Sagging headliners are a frequent and costly problem to fix properly. Also, inspect the wood veneer for cracking and delamination.
- Listen for clunks from the suspension on a test drive. Worn subframe and control arm bushings are common and labor-intensive to replace.
Sale prices have ranged from as low as $100 for parts cars to as high as $50,000 for concours-quality examples.
703 Jaguar XJ40 XJ vehicles have been tracked across auctions and listings on Hypercars, with 232 currently live. Sold prices range from $500 to $123,456.
Data sourced from Bring a Trailer, Cars & Bids, eBay Motors, PCarMarket, and Collecting Cars. Updated daily.
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