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

Reliability score : 8.4/10

The Peugeot 106 Phase 2, introduced in April 1996, is a heavy facelift of the original 1991 model. It shares its platform, engines, and most of its underlying mechanics with the Citroën Saxo. Designed as a lightweight, agile, and affordable city car, the Phase 2 brought a more rounded, modern exterior styling in line with the 306 and 406, along with improved interior materials and the introduction of multi-point fuel injection across most of the petrol range to meet stricter emission standards. While it lacks modern safety features and sound insulation, it is highly regarded by enthusiasts for its pure driving dynamics, particularly in its 'Rallye' and 'GTI/S16' guises. The petrol 'TU' engine family is the heart of the 106, renowned for its rev-happy nature and mechanical simplicity.

✅ Strengths

Exceptional chassis dynamics and steering feel (especially on sporty trims)
Very low running costs and cheap, widely available spare parts
TU petrol engines are mechanically robust and easy to work on (DIY friendly)
Lightweight construction (under 900 kg for most versions) makes even small engines feel lively
Excellent fuel economy, particularly the 1.5D and 1.1i

⚠️ Weaknesses

Rear axle trailing arm bearings (Train arrière) are a major, expensive failure point
Poor crash safety standards by modern metrics (weak structural rigidity)
Driving position is compromised (pedals offset to the left, steering wheel not adjustable)
Lack of sound insulation makes highway driving noisy and tiring
Clear coat peeling and interior plastics fading/rattling with age

🎯 Verdict

The Peugeot 106 Phase 2 is a quintessential 90s lightweight city car. If you are looking for a cheap, easy-to-maintain runabout, the 1.1i or 1.4i are fantastic choices provided you find one with a healthy rear axle. The GTI/S16 and Rallye models are bona fide modern classics, offering a raw driving experience that is impossible to find in modern cars, though they require a premium price and careful maintenance. However, buyers must be fully aware of the poor crash safety and the inevitable rear beam rebuild. Buy on condition, not mileage, and prioritize cars with documented maintenance.