The Peugeot 307 Generation I (Phase 1) was launched in 2001 as the successor to the highly praised 306. It marked a radical shift in Peugeot's design philosophy, adopting a 'tall-boy' semi-MPV architecture that maximized interior space and visibility. It won the European Car of the Year award in 2002. Available as a 3-door and 5-door hatchback, a versatile SW/Estate, and later a CC (Coupé-Cabriolet), it was a massive commercial success. However, this generation is historically infamous for its disastrous early adoption of multiplexed electronics (VAN/CAN bus), leading to severe reliability issues in its early years (2001-2003). While mechanically robust in certain configurations, the Phase 1 307 requires extreme caution on the used market.
The Phase 1 Peugeot 307 is a car of extremes. It offers fantastic comfort, space, and handling, but its early multiplexed electronics were severely under-developed, leading to nightmarish reliability for many owners. As a general rule, models from 2001 to 2003 should be avoided. If you must buy a Phase 1 307, seek out a 2004-2005 model with the 2.0 HDi 90hp (for diesel) or the 1.6i 16v (for petrol). Avoid the 1.6 HDi 110hp entirely unless you have proof of meticulous maintenance and turbo replacement. Due to rock-bottom prices, it can be a cheap runabout, but keep a budget aside for inevitable electrical gremlins.