Peugeot 106 S2

The Peugeot 106 Phase 2 (1996–2003) is a relic from a time when cars were still honest — light, simple, cheap to repair and completely free of electronic ballast. Under 900 kg kerb weight, a handy 3.68 metres long, with engines any home mechanic can service in their sleep. Sought after today as a youngtimer, especially the sporty variants. But: rust on the 106 isn't a risk, it's a certainty. Anyone who wants to buy one needs a ramp and a magnet.

Engine choice: The 1.4 8V (TU3JP) with 75 hp is the bread-and-butter engine — robust, easy on fuel (6.5–7.5 l/100 km in town), low-maintenance. Timing-belt change every 120,000 km or 10 years, cost €200–400. The head gasket is the Achilles heel: from 120,000 km it can blow between the oil and coolant galleries. Oil in the coolant or mayonnaise on the oil cap are the warning signs. Repair €400–1,200 depending on the workshop — on a car worth €1,500 that becomes a write-off. The 1.6 16V (TU5JP4) with 120 hp in the 106 S16/GTi is the enthusiast's engine — keen to rev to 7,200 rpm, 120 hp from 1.6 litres without a turbo, a delight with a short throw. Technically similar issues to the TU3, but the head gasket holds up better because the cooling system is better sized.

Rust — the main issue: the 106 rusts from the inside out. The sills are by design a cavity where water and dirt collect. From the outside the sill often still looks passable, while inside there's nothing but flaky pastry left. Repair panels €300–1,200 — but only if the mounts are still sound. Wheel arches, strut mounts, chassis rails, tank mounts — all rust-critical. A 106 without rust problems barely exists in 2026. The only question is: how far has it progressed? Rear axle bushes are the second classic — the torsion-beam axle has silent blocks that are worn out after 80,000–120,000 km. Thudding and wandering of the rear axle under braking. Replacement €250–700, and while you're at it, do the shock absorbers too.

The onboard electrics from the '90s mean: earth faults, corroded connectors, broken wires behind the dashboard. The indicator only works when the lights are off, the wipers run of their own accord, the fuel gauge shows fantasy figures. Systematically checking the connectors and cleaning the earth points solves 80% of the electrical problems for zero euros. Clutch and gearshift wear quickly under sporty driving — the clutch cable stretches, the clutch disc is due from 100,000 km, the shift-linkage bushes go soft. Clutch change €350–700.

Buying advice 2026: only buy with a ramp check. Inspect the sills from underneath, feel the strut mounts, check the tank mounts. An S16/GTi in good condition is now a collector's item — prices €4,000–8,000 for rust-free examples. Standard petrols from €500–2,000, though under €1,000 usually means TÜV death by rust. Anyone who can wield a spanner and has a dry garage gets a car that's fun and costs nothing. Anyone who can't turn a spanner should leave it well alone.