The best-selling French car in history with over 12 million units produced. A cheap, cheerful city car that's easy and inexpensive to maintain. The TU3JP engine is robust with a lifespan of 180,000-300,000 km when properly maintained. Key concerns: rear axle bearing wear after 50,000 km, stalling issues from faulty stepper motors or coil packs, electrical gremlins (especially central locking), and the infamous head gasket oil leak. Timing belt must be changed every 80,000 miles or 10 years. Parts are extremely cheap and widely available.
Torsion beam bearings wear out, causing clunking and vague handling · more· less
The rear axle is the 206's weakest point. Worn trailing arm bearings cause bumping/clonking noises over bumps and erratic handling. Check the rear wheel camber - negative camber indicates the bearings have gone. Repair kits are available, but a refurbished axle with 2-year warranty is often the safer option. Full replacement quoted around £700 including labor. Check the beam after 50,000 km.
Ignition coil pack failure€50 - €150
Sagem coil packs damage ECU, causing misfires and stalling at idle · more· less
A very common problem on 1.4/1.6/1.8 Peugeot engines. The original Sagem coil pack can go high voltage and damage the ECU. Symptoms include stalling at traffic lights, erratic idle, and engine management light. Replace with a Bougicord coil pack and use genuine spark plugs - the system uses feedback from the coil for cylinder timing. Parts cost €10-90, an easy DIY fix.
Stepper motor / idle control valve€40 - €100
Faulty stepper motor causes random stalling, especially after 40,000 miles · more· less
On 206s over 2 years old or with more than 40,000 miles, random stalling is common. The usual cause is a faulty potentiometer and stepper motor that controls idle speed. Cleaning the throttle body may help temporarily, but replacement is usually needed. Parts available on eBay for around €35. Also check for air leaks in inlet manifold rubber pipes.
Central locking actuator failure€50 - €200
Locks "bounce" - immediately re-unlock after locking, or fail completely · more· less
Almost half of 206 problems are electrical, with central locking being a particular weakness. The actuator solenoid fails, causing the car to immediately re-open when locked. A scrapyard solenoid costs as little as €5-10 and plugs straight in. The solenoid is held by a single screw - easy DIY. Dealers may quote €800+ for this simple repair.
Head gasket oil leak€300 - €500
TU engine head gasket leaks oil externally, visible above alternator · more· less
The TU engine has an infamous external oil leak from the head gasket, typically visible running down the block just above the alternator. This is not always catastrophic but should be addressed. The head must be skimmed during replacement or the leak often returns. Including timing belt, tensioner, and water pump replacement, expect €370-500. Gasket alone is only €40-90.
Power steering rack leak€200 - €450
Seals fail on steering rack causing fluid loss and groaning on turns · more· less
Power steering leaks commonly occur at the rack seals or where hoses change from rubber to metal at crimp fittings. Pull back the rack gaiter - if PAS fluid pours out, the seals have gone. A remanufactured rack costs €80-150 plus labor. The job is difficult and time-consuming due to accessibility.
COMM2000 indicator stalk failure€150 - €300
Fragile indicator stalks break, combined unit controls wipers and indicators · more· less
Every 206 from 2001 onwards has fragile indicator stalks that break easily. The COMM2000 is a combined unit with wiper and indicator stalks plus electronics. Earlier units fail more often. Replacement stalk costs around €250 from Peugeot, but used units from scrapyards are much cheaper. The repair requires some electrical knowledge.
Engine mount wear€100 - €200
Rubber mounts perish causing vibration and juddering at idle · more· less
When idling, the car may jitter and judder. The engine mounts are made of aluminum and rubber which crack and perish over time. Mounts generally last over 150,000 km. Parts cost only €4-48, but labor adds €50-150 as the engine needs supporting during replacement. Easy to diagnose by observing engine movement.
Exhaust system corrosion€75 - €200
Exhaust sections rust through due to heat cycles and road salt · more· less
Exhausts rust from exposure to water, salt, and extreme temperature cycles. Sections can be replaced individually for €35-90. One owner had a back box replaced for €150. If the mid-section and flexi-pipe are affected, costs increase. Independent exhaust centers typically charge under €100 for section replacement. Catalytic converter failure is much more expensive.
Cheap to fix when things go wrong
The 206 is mechanically simple with extremely affordable parts. Most repairs can be done at independent garages for a fraction of dealer prices, and many issues are straightforward DIY jobs. The main structural concern is the rear axle, which should be inspected carefully. Electrical gremlins are common but usually cheap to resolve. Well-maintained examples regularly exceed 200,000 km.
Pre-Purchase Inspection Checklist
General checks
Service history
Check service book stamps match MOT history and receipts. Verify timing belt change records.
Tires
Check tread depth, age (date codes), and uneven wear which may indicate suspension issues.
Cold start
Must start engine completely cold. Listen for unusual sounds and note if it stalls.
Body condition
Check sills for rust by squeezing front to back. Inspect under bonnet, in boot, and around wheel arches.
Test drive
Minimum 20 minutes including varied speeds and stopping at junctions to check for stalling.
Specific for this vehicle
Rear wheel camber check
Look from behind the car - if rear wheels have visible negative camber (leaning inward at top), the rear axle bearings have failed. This is the most important check.
Drive over bumps and listen
Clonking or bumping from the rear indicates worn trailing arm bushes or rear axle issues.
Stalling test at junctions
Drive for 15+ minutes, then stop at several junctions with engine idling. Stalling indicates coil pack or stepper motor issues.
Test central locking multiple times
Lock and unlock the car 5-6 times. Watch for "bouncing" where it immediately re-locks or re-unlocks itself.
Check for oil leak above alternator
Look at the engine block just above the alternator for the infamous TU head gasket external oil leak.
Top radiator hose feel test
With engine running, the top hose should feel bouncy. If very soft/floppy or rock solid, the head gasket may be failing.
Power steering fluid level
Check PAS reservoir level and look for leaks around the steering rack gaiters.
Indicator stalk operation
Test indicators and wipers thoroughly. Feel for looseness or stiffness in the stalks.
Timing belt records
Must be changed every 80,000 miles or 10 years. If no records exist, budget €300-400 for immediate replacement.
Recalls and Technical Service Bulletins
Brake pedal clevis pins (Sept 1998 - Feb 2002)Verify completed
Side airbag deployment (Sept 2000)Verify completed
Rear spoiler detachment (launch - Oct 2003)Verify completed
There are 15 safety recalls on record for the Peugeot 206. Contact a Peugeot dealer with the VIN to verify all applicable recalls have been completed. The brake pedal pin recall is particularly important for safety.
Warranty Status
Factory warranty (2 years)Expired on all models
Timing belt interval80,000 miles / 10 years
All Peugeot 206s from 1998-2006 are now outside their original factory warranty. Given the age of these vehicles (19+ years), focus on service history documentation and recent maintenance receipts. Third-party used car warranties may be available but check exclusions carefully for vehicles of this age.
This report is for informational purposes only and does not constitute professional advice. Estimates may be inaccurate. Always have a qualified specialist inspect the vehicle before purchase. We accept no liability for decisions made based on this information.