It's all about finding a deal...
I picked up my DD XJ (89, 4-oh, AW4, decent shape, only 3 or 4 little rust spots and the typical clear peeling) for the paltry sum of $2400 tax in. That was off a dealer who my mother knows personally, and he gave it to me at cost + 100 (and tax). I'd consider it a good deal for what it was (comparable to ever other one I looked at, if not better).
Buddy was himming and hawwing about getting an XJ for his wife. 3 weeks later, he's got an 88, 4.0, AW4, leather interior, no rust, peeling, for $250.
Deals exist, you just gotta know enough people.