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).
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.