Peugeot 106 Rallye S2 | Spotted

If the Peugeot 208 Racing demonstrates one thing, it’s that there are still enough people in Peugeot who care about rally-bred little cars. It’s literally a junior competition car, for starters, but it also channels so much of what was loved about the old Rallye production models. The new addition is white with white wheels, for starters; given freedom to choose any spec in the world, they went for the one that most closely resembles old 205s and 106s. Which is cool. That it’s another light, manual, modestly powered Peugeot only furthered the appeal. 

That the Racing was conceived and then received so favourably – 4.5 on the PH o’meter from hundreds of votes – shows just what affection there remains for Rallye Peugeots. Even without one for something like 25 years, there’s nothing to get a certain section of car folk going like a stripped-out, tricked-up Peugeot hatchback. Obviously, a car with wind-up windows and one airbag couldn’t make it to a 2024 showroom, but given the dreariness of the current Peugeot lineup, we’d take anything that rekindles just something of the former glory. 

It’s hard to think of another group of performance derivatives with such a hallowed reputation as the Rallyes. The formula for the 205, 306 and a pair of 106s wasn’t complex, but it was mightily effective: strip weight from already slender (and brilliant) hot hatches, add stripes, ensure it drove like a tarmac rally car. The 205s and 106s actually homologated for motorsport were a little more trick, sure, including that feral 1.3 in the latter, though fundamentally they were all quite simple, lovable hot hatches. None had more than 170hp, none weighed more than 1,200kg, all were superb. We’ll even include the UK 205 Rallye that wasn’t quite the full ticket. 

As a former (very short-term) owner of a 306 Rallye – don’t lift off in the rain on old tyres – there really is nothing like an old, fast Peugeot. This 106 looks an absolute jewel, and a quarter of a century from launch there aren’t many still like this. Because if ever there was a car to drive the door handles off, expose to the elements and generally drive treat like each road was a special stage, the Rallye was it. 

Let’s not forget, either, that there were never very many in the first place; as with the larger 306, the Series 2 106 Rallye was limited to just 500 units over here. And just half were white, which is the more desirable colour for the full rally car vibe. There are many more GTIs around for less money, and they’re hard to ignore, being just as hilarious to drive and with a couple more creature comforts, though it’s the Rallyes that remain most collectable. White wheels and stripes will do the trick sometimes. 

This one has covered 75,000 miles with just two owners, which is impressive for a car like this. Surely quite a few would have been swiftly moved on once people realised quite how extreme they were. The ad says it’s been dry stored in a collection for a while, so it presents really nicely, and there’s a fresh, advisory-free MOT until next October. The Rallye hasn’t been driven much in the 2020s, covering just 30 miles since 2021, so some bits and bobs might need replacing, but nothing should be too pricey. And just imagine how good it’ll be with everything tip-top. 

The asking price is £15k, which is about in line with what’s been asked for similar cars in recent times. Dwindling numbers of iconic cars that’ll never happen again is quite a heady cocktail for used values. Especially when combined with folk desperate to relive a misspent youth, a time when kids could afford hot hatches. But if ever an old Peugeot 106 could be worth more than it was new, the Rallye could be it. 

Engine: 1,587cc four-cylinder
Transmission: 5-speed manual, front-wheel drive
Power (hp): 103@6,200rpm
Torque (lb ft): 97@3,500rpm
MPG: 33.6
CO2: 174g/km
Year registered: 1998
Recorded mileage: 75,000
Price new: £9,895
Yours for: £12,500