Power steering pump (common weak-spot apparently)Rusting sub-frame, suspension bushes, catalytic converter, rusting arches, 2nd gen tensioners
Fabulous British GT car with good handling and a effortless cruising ability but totally ruined by shocking build quality.
In order to get real performance out of it you have to use the J gate which for some reason works better out of sport mode than in it! I suspect that the torque converter just isn't up to it which is a great shame.
Also runs beautifully on 18" alloys as opposed to the 20" things some people are going for. These just ruin the ride!
The first fault was a leak in the power steering pump caused by a failed gasket. This was followed by a whole series of other faults that took the shine off the ownership experience. The final nail in the coffin was the huge amount of rust found on the underside of the car. It was like looking at a british leyland car from the 70's!
If you are going to buy one of these make sure you check the underside very carefully and make sure it has the 3rd generation tensioners.
Update to this review:
This car literally fell apart. Rust on the sub-frame was so bad, it was coming away from the rest of the chassis! Shock absorbers went, power steering fault again! This car looks beautiful but is built terribly and is not worth the money. Buy a Porsche.
I agree with the comments on poor reliability. I ran a 1996 XK8 for about 8 months, - not more that 3000 miles. During that time the following costs clocked up. Water pump failed, front bearings needed replacing, door lock assembly came loose, catalytic converter loud rattle, finally the gear box fault light came on. The XK8 is a great car to drive, just make sure that you have a bank loan lined up to cover the cost of repairs.