Peugeot 106 I phase 2 (1A/C) (1996 – 2003)

Reliability score : 8.4/10

The Peugeot 106 Phase 2, launched in 1996, is a major evolution of the lion-badged city car that appeared in 1991. It now shares its platform and engines with its cousin, the Citroën Saxo. More rounded, better finished, and slightly safer than Phase 1, it retains what made it successful: a featherlight weight (often under a ton), formidable agility, and simple, proven mechanics. While the sporty versions (S16, Rallye) are highly sought-after 'youngtimers' today, the classic versions (1.1i, 1.4i) remain excellent economical daily drivers. Be aware, however: its old design makes it vulnerable to current passive safety standards (crash tests).

✅ Strengths

Negligible maintenance and insurance costs
Excellent overall mechanical reliability (TU and TUD engines)
Exceptional road handling (agility, precise front axle)
Mechanical accessibility (ideal for learning mechanics)
Abundant and very cheap spare parts
Strong 'Youngtimer' potential for Sport/Rallye/S16 versions

⚠️ Weaknesses

Obsolete passive safety (fragile structure in case of a crash)
Chronic rear axle issue (trailing arm bearings)
Fragile cylinder head gasket on TU petrol engines
Almost non-existent sound insulation on the highway
Interior plastic quality and seat wear
Very sparse standard equipment on lower trims

🎯 Verdict

The Peugeot 106 Phase 2 is the archetype of the 90s city car: light, communicative, and mechanically indestructible, with the exception of its two chronic ailments (cylinder head gasket on TU engines and the rear axle). With the 1.1i or 1.4i petrol engine, it's an excellent choice for a new driver, a student, or as an economical second car. The S16 and Rallye versions are pure collectors' items offering driving sensations that have disappeared today. The purchase is highly recommended, provided the rear axle is rigorously inspected and keeping in mind that its crash safety no longer meets current standards.

Common issues

Usure des roulements de bras de train arrière High

🔧 100 000 – 180 000 km

💶 400 – 800 €

Vérifier le carrossage des roues arrière et l'absence de jeu.

Fuites d'huile moteur (joint de culasse, carter, cache-culbuteurs) Medium

🔧 120 000 – 200 000 km

💶 150 – 900 €

Surveiller le niveau d'huile et la présence de taches sous le véhicule.

Problèmes électriques (lève-vitres, centralisation, feux) Low

🔧 80 000 – 150 000 km

💶 50 – 250 €

Tester toutes les fonctions électriques avant l'achat.

Corrosion de la ligne d'échappement Medium

🔧 80 000 – 150 000 km

💶 150 – 400 €

Inspecter visuellement la ligne d'échappement pour la rouille et les fissures.

Usure des silentblocs de suspension et de barre stabilisatrice Medium

🔧 90 000 – 160 000 km

💶 100 – 350 €

Écouter les bruits de claquement ou grincement sur routes dégradées.

Estimated maintenance costs

Oil change	£60 – 110
Timing belt	£350 – 600
Clutch	£550 – 900
Complete brakes	£200 – 450
Estimated annual budget	£400 – 850

Indicative estimates (independent garage, UK market). Prices vary by region and year.