The Peugeot 207 succeeded the legendary 206 with the daunting task of performing just as well. More imposing, heavier (up to +150 kg) but significantly better finished and safer (5 Euro NCAP stars), it marked a clear move upmarket. This Phase 1 (2006-2009) is a pivotal period mechanically: it began its career with the old and robust TU/ET engines, before gradually introducing the "Prince" petrol engines (VTi and THP) co-developed with BMW, which would prove to be disastrous in terms of reliability. In diesel, the 1.6 HDi 110hp of this generation is also notoriously famous for its turbo failures. It's a model with two faces: very reliable in some versions, a financial black hole in others.
The Peugeot 207 Phase 1 is an excellent versatile city car, provided you choose the right engine. Its chassis is superb and its safety was top-notch for its time. However, it introduced engines that ruined its reputation. Absolutely avoid the 1.6 THP and 1.6 HDi 110 from those years, as well as VTi engines without an impeccable service history (chain replaced). For a worry-free purchase, prioritize the older petrol engines (1.4 75hp, 1.4 16v 90hp, 1.6 16v 110hp) or the less powerful diesels (1.4 HDi 70, 1.6 HDi 90), making sure to check for any injector leaks.