The Peugeot 107 (Generation I, Phase 1) is a quintessential A-segment city car born from the B-Zero joint venture between PSA Peugeot Citroën and Toyota. Manufactured alongside its identical siblings, the Citroën C1 and Toyota Aygo, at the TPCA plant in Kolín, Czech Republic, it was designed to be as cost-effective and practical as possible for urban environments. The 2005-2009 period covers the pre-facelift models. Its standout feature is the Toyota-sourced 1.0-liter 3-cylinder petrol engine, which provides exceptional reliability and low running costs. While basic in its interior finish and sound insulation, the 107 remains a highly sought-after used car for first-time drivers and city dwellers due to its mechanical robustness and frugal nature.
The Peugeot 107 1.0 petrol (Manual) is an outstanding choice for a cheap, reliable used city car. Thanks to its Toyota-engineered heart, catastrophic engine failures are virtually unheard of if basic maintenance is followed. However, buyers must be vigilant about water leaks in the boot and the condition of the clutch. Avoid the 1.4 HDi diesel entirely; it is unsuited for short city trips, prone to expensive injector and EGR issues, and defeats the purpose of a simple city car. Similarly, the 2-Tronic automated manual gearbox should be avoided as it is jerky and accelerates clutch wear. Stick to the 1.0 manual, check for dampness, and you will have one of the most cost-effective cars on the road.