The Peugeot 106 Phase 2 (introduced in April 1996) is not just a simple facelift of the 1991 Phase 1: it now shares most of its platform and components with the Citroën Saxo. More rounded, slightly longer, and better equipped in terms of passive safety (door reinforcements, airbags), it retains what made the first version successful: a featherlight weight (often under 900 kg), lively and playful road handling, and simple, proven mechanics. Now fully entered into the Youngtimers era, it is sought after for both economical commutes (1.1i, 1.5D) and for collecting and driving (Rallye, S16/GTI). Its mechanical reliability is excellent, but it suffers from chronic issues related to its period design, particularly its rear axle.
The Peugeot 106 Phase 2 is the archetype of a brilliant, light, and economical small car. While its passive safety disqualifies it for modern family use or long highway journeys, it remains an excellent choice for a new driver, a DIY enthusiast, or a passionate collector. The 1.1i and 1.4i versions are perfect for daily use, while the 1.5D is an indefatigable workhorse. The sporty versions (Rallye, S16) have become true collectors' items whose value is soaring. Purchase is highly recommended, with one strict condition: thoroughly inspect the rear axle and check for corrosion.