Peugeot 106 Buyer's Guide
The 106 that comes to auction is not the shopping car; it is the Rallye. Both of our sold results are 1998 Rallye S2s, at £10,000 and £13,500, which tells you exactly where collector attention sits: the stripped-out, steel-wheeled special has become a five-figure car while ordinary 106s remain banger money elsewhere. Our data covers the Phase 2 car (1996–2003).
Know your versions
The Phase 2 Rallye S2 swapped the original 1.3 for a 1.6 8v, kept the deleted equipment list (no power steering, no central locking, wind-up windows) and the signature white paint with steel wheels, and remains the purist's pick of all small Peugeots of the era. The 106 GTi of the same years used a 1.6 16v with more power and more equipment; it trades close to the Rallye nationally but appears less often in our records, and we have no sold data for it yet. Ordinary 1.1 and 1.4 cars survive in tiny numbers and are not yet auction material.
What to pay
Two sold results: £10,000 in August 2026 and £13,500 a week later, both 1998 Rallye S2s, giving a median of £11,750. That spread between two same-year, same-model cars is the condition-and-history gap in miniature: originality, unwelded sills and a thin owner list earn the premium. We have no active listings at present, so treat £10,000–£13,500 as the current corridor for a good Rallye S2 and expect a modified or scruffy car to fall below it.
What goes wrong
Rust is the killer: sills, rear arches, the fuel filler area, front wings and the scuttle all corrode, and a Rallye's value now justifies proper metalwork rather than filler. The TU-series engine is robust with cambelt discipline (every four years or so, with the water pump), but many have been thrashed; look for smoke on the overrun and tired mounts. Rear beam bearings wear on every high-mileage 106 and the car sits visibly negative-cambered at the back when they go; a beam rebuild is routine for specialists but not free. Interiors are fragile: Rallye seat bolsters, door cards and the correct steering wheel are hard to source, and originality is most of the price.
Our view
The Rallye S2 is a proper future classic: light, mechanically simple, cheap to feed, with an enthusiastic club scene and most consumables shared with millions of ordinary Peugeots. At our £11,750 median it is already collector-priced, so buy the most original shell you can find and walk away from anything with a roll cage and a story. The trim, not the engine, is what you cannot replace.
