For 2002, Jaguar has continued to upgrade the new S-Type sedan with additional features and options. Three new colors are available this year, and the cup holder setup (a target of many previous driver complaints)has been redesigned. A new Sport Package is optional this year, adding Jaguar's CATS (Computer Active Technology Suspension) and self-adjusting shocks.

The Sport is not a trim level, but it can be applied to either S-Type variant. Buyers can choose between the 3.0L V6-powered version, or the 4.0L V-8 model. The V-6 is quite powerful, producing 240 horsepower and 221 pound-feet of torque, while the 4.0 liter V-8 bumps horsepower up by 40 to 282, and torque increases to 287 pound-feet. The V-8 is about a second and a half faster to 60 mph, at 7.0 verses 8.7 seconds. Both engines are mated a five-speed automatic transmission, and fuel efficiency is estimated at 17/23 mpg for the V-8 and 18/26 mpg for the V-6.

Both S-Types are well-equipped, commensurate with their substantial price tags. The upper tier 4.0 adds a few additional luxury and convenience features, but the larger engine is the most noticeable difference. Most of the extra features on the 4.0 are standard on the 3.0. A navigation system and the CATS suspension are optional on both models.

The 2002 Jaguar S-Type has received very positive reviews from both owners and test drivers. While complaints are few, they include a strong presence of Ford engineering (it is built on the Lincoln LS platform), value in its class, low gas mileage and minor but nagging electrical problems. The S-Type is touted as very enjoyable to drive, even with the V-6, and the luxurious cabin aptly silences the road and wind noise. The well-appointed and user-friendly cockpit is another common favorite feature. Most owners have found the sedan to be very reliable, compared to Jaguar history.