Very few XE’s were V8’s. Factory V8’s seem to fetch a premium. If you are planning to buy a factory V8, do your legwork and make sure you know what you are getting. If you are getting an XE with a V8 dropped in it, get it checked over professionally. It was also the first Falcon to offer Electronic Fuel Injection so problems are in abundance there. It is also one of the first Falcons to use an alloy head, which means blown head gaskets are a definite possibility. Also check the condition of the coil spring sedan rear suspension, another first for the Falcon.
Blown head gaskets
Cooling system issues
Oil leaks
Be wary of aftermarket LPG systems
Faded paint
Rust on wagon tail gate
Air leaks
Failing distributor
Rear suspension issues
Be wary of non factory V8’s
Faulty control relay
Vacuum advance unit issues
Earthing issues