Some really great knowledge here, especially from Anak.
Coming from adventure motorcycling, we purchased our first XJ three months ago when we moved to Vancouver Island. When searching for our first overland rig, the ideal criteria were basically the same as looking for a bike to take to Alaska:
1. Capable, reliable, common vehicle that is easy to work on. (For wheeling and overlanding, this obviously meant XJ. :)
2. Mechanically sound - no little niggling hidden issues/costs. I wanted to put most of my resources into overland additions, not into making it road worthy.
3. Minimal/no rust.
4. Everything works, all the lights, all the switches, all the stop and go, all the windows, etc. EVERYTHING.
4. Mostly stock, which equals, to me, unmodified and "unmolested", ie. I did not want to inherit someone else's mechanical ineptitudes.
5. Clean.
6. Aftermarket support.
Also, I wanted a hitch, so I didn't have to add one myself, either for towing or for recovery.
We almost did it right. :)
There were plenty of XJs selling for $6000 CAD, lifted, tires, bumpers, all sorts of light bars, etc. But they all had that "molested" feel, as if they weren't done properly, just dressed up and had the important stuff ignored.
We found our almost rust-free 1997 for $3500 CAD and talked him down to $3000. Since then I have put $2500 into it, including front tow hooks for recovery, 31 inch tires, a 3.5 inch lift (Rubicon Express coils and Rough Country longer shackles), new ZJ tie-rod, drag link, Rough Country adjustable track bar, steering box brace, sway bar disconnects and changed all the fluids. So now she costs $5500.
Turns out that this vehicle was being sold for a widow and it had sat for a while. We are now into the u-joint and ball joint stage. Bolts in the transmission drain pan were stripped and had to be repaired. the transmission cooler line has a leak. The steering box needed tightening. The springs are sagging when we put weight in. The new springs are going to push us vertical, which could mean transfer case drop, potentially longer driveshaft or the expensive slip yoke eliminator/accompanying aftermarket driveshaft. I need a longer rear brake line for the new springs. The reverse lights stopped working, which I figured was a fuse, but it was a neutral safety switch. The floor pans need small repairs to keep the rust from spreading. These are all reasonable issues with an older vehicle.
But all of this is going to cost more $$$ and most of all, time. Time to me is much more valuable than money. While maintenance is obviously one of the cornerstones of travelling in an older vehicle, working on this vehicle constantly is time away from my family and time away from overlanding. You may need to make concessions when a good deal comes around.
We did pretty good. The XJ works well, it just needs lots of TLC, and after all of those little jobs are done, I will have the piece of mind that she is refreshed. But it's so much time in the driveway, time away from my loved ones, time off the road.
After all of that, if I could do it again, I would have paid more for a cleaner, better maintained vehicle. My advice would be.....If you can find someone really competent who has put all of their blood, sweat and tears into their XJ, and is selling it with all of the common mechanical jobs completed, like brakes, bearings, seals, tie-rods, u-joints, suspension, fresh fluids and no oil, transmission, coolant or differential leaks, all of that little stuff, it will save you money and time in the long run. It should be clean and everything should work, even all the little switches on the dash. ;) Also, if they have a little bag of receipts for all the regular maintenance, that's a good sign.
When I read that ad, I see someone who bought the XJ, replaced what absolutely had to be done to drive it, including the front tires (alignment issue?) put in a stereo, and ignored the seemingly unnecessary jobs like the horn, the A/C, the E-Brake - none of these are necessary for wheeling with your music pumping, right? But they are necessary for overland travel, where safety and vehicle preservation are both critical.
I agree that this one is priced steep. If you could snag it for $2000-2500 it may be worth it, if it is in good condition. But as far as getting an XJ. Yes. Do it. I was absolutely floored when we tested this vehicle offroad. It is a beast!
Just my two cents. Good luck on your search and be safe out there.