Peugeot 205 buyers' guide

The early to mid-1980s were a brilliant time for superminis. October 1980 brought us the iconic Austin Metro, with its legion of celebrity fans including the then Lady Diana Spencer: the second-generation VW Polo came exactly a year later.

A little later, and all within 12 months of each other, came no fewer than five minis that would all become familiar faces on our roads as the decade rolled on. First out of the blocks was the second-gen Ford Fiesta, followed by the Vauxhall Nova. Then came the all-new Nissan Micra, the Fiat Uno… and, finally, the Peugeot 205.

Ask yourself which of these seven talented superminis still looks the most iconic and recognisable today, and we'd suggest a straight three-horse race between the Metro, the Mk2 Fiesta and Peugeot's much-admired small car. Change the question to which is now the most desirable, and there is only one winner.

New directions for Peugeot

The Peugeot 205 made its debut on the continent in February 1983, with right-hand drive models entering UK showrooms in September of that year. Very soon afterwards, the car came an extremely close second to the Fiat Uno in the 1984 European Car of the Year award. Ultimately, though, excellent car though the Uno was, you'd have to say that on this occasion the judges (just) got it wrong. Of the two cars, the 205 was to enjoy the more illustrious career.

That Peugeot was producing a decent small car at all, let alone one that was chasing awards and winning friends everywhere, was something of a turnaround. For the previous 20 years, the French marque had been best known for turning out big, sturdy, sensible saloons and estates that would basically go on until driven into the ground. We're talking about the 505 here, and its predecessor the 504. We can't resist mentioning the 504 that was recently discovered with over a million kilometres (or 625,000 miles) on the clock. Make no mistake, these were big cars – with big amounts of stamina.

Holding its own throughout the 80s

The 205, then, was something of a departure for the lion marque. It was, though, an instant hit, and its styling – so many nice touches, including that pleasing body-coloured front grille – was echoed in every Peugeot model that was to follow for the next decade or more. Indeed, the 205's own exterior styling needed no major facelift throughout its 15-year production run.

Changes, indeed, were relatively few and far between across the 205's life. The 1988 model year brought a dashboard redesign, while in late 1990 the car got new doors and 'smoke' effect rear lights. Like many other cars at the time (see also the Vauxhall Cavalier and Ford Escort), the 205 also swapped its orange front indicators for clear lenses.

Leaving aside from the 1.6 and 1.9-litre GTI versions, which we'll come to in a minute, standard 205s came in four petrol engine sizes – 1.0, 1.1, 1.4 and 1.6 litre. There was also a diesel, a 1.8 litre available in standard or turbocharged form.

Around 1990, the supermini sector got shaken up once again, with the arrival of a brand new rival from the 205's own mother country. Arriving to the accompaniment of a famous TV advert ('Nicole!' 'Papa!'), the Renault Clio was the replacement for the marque's long-loved 5 hatchback, and would prove just as popular as its predecessor. Elsewhere, the Rover Metro and Volkswagen Polo got major updates, while the third generation of Ford's Fiesta was bedding in nicely.

All the more impressive, then, that even among all this reinvigorated opposition, the 205 was still proving so popular, with motoring journalists and owners alike, as the 1990s dawned.

A design icon

What was the key to the car's success? In a nutshell: brilliantly compact design. With its 'wheel at each corner' architecture, the 205 looked extremely neat and attractive, and also made excellent use of its relatively small proportions. Ingeniously, a car that weighed somewhere between 740 and 950 kilograms managed to be a comfortable and roomy place to spend time in.

The fully independent suspension that featured MacPherson struts at the front, complemented by trailing arms and torsion bars for the rear wheels made nice touches. That rear suspension was a minor packaging miracle, intruding only minimally into the wide, flat boot while still managing to give the car its famously enjoyable ride and handling mix.

The 205 got a fair few of the mod cons of its era: for example, later versions came with power steering. Not absolutely indispensable on such a light car, but definitely nice to have.
And, while your thoughts may not turn automatically to diesel for a car of this size, it's worth knowing that the diesel 205s (bearing a 'D' at the end of their trim name – XLD, GLD, GRD) could return up to 50mpg. Fuel economy is not necessarily something you associate with classic cars – but the 205 could really deliver here. If you can find a diesel model, it may be a good way to keep running costs down – leaving you some cash in reserve for other things like that all-important classic car insurance.

That light weight also helped the car's handling – it was agreed to be one of the best handling, most fun to drive superminis of its time. Especially in GTI guise. Talking of which…

The 205 GTI (or, the one you really want)

Of course, the 1980s were also a prime time for 'hot hatch' derivatives of sensible family hatchbacks. VW got in first with the Golf GTI; Ford soon followed with their XR2 and XR3 derivatives of, respectively, the Fiesta and Escort. Peugeot's debut into this sector couldn't have been stronger: the 205 GTI, which launched in 1984, quickly gained an ardent following and is now recognised as one of the best hot hatches of all time.

The 205 GTI came initially with a 1.6-litre engine that put out 103bhp. Hardly Golf GTI-bothering, we hear you say? Maybe not… but on a car weighing in at just 850kg, that engine certainly propelled it around very efficiently. Putting your foot to the floor would give you a very acceptable top speed of 116mph, perfect for all those track days that the nimble little 205 seemed to cry out for.

That said, Peugeot did tinker away at the 205 GTI's power figures. In 1986, they dialled the power up to 113bhp – although the car also gained 50kg in weight, taking the edge off that legendary agility. Given this, if you are in the market for a 1.6 GTI and place driving thrills at the top of your agenda, you may want to start your search with pre-1986 models.

And if you do head to the track, make sure your classic car insurance covers you for such events.

Powering up

A more significant development also arrived that year, as Peugeot added a larger 1.9 engine to the GTI range. Power now went up to 124bhp, later downgraded to 120bhp as the obligatory catalytic converter was introduced in 1992. That said, all 205 GTI engines, whether 1.6 or 1.9, are eight-valve machines, and as a result have more than enough in the locker.

This new 1.9 also got upgraded brakes to handle its increased power. Where the 1.6 had disc brakes at the front but drum brakes at the rear, the bigger 1.9 engine got discs on all four wheels.

Although it dealt well with those competitors, the GTI did experience falling sales in the early 1990s. The car was, in some measure, a victim of its own success: it had become such a cult hot hatch that, in the era of boy racers and joyriding, it became a common target for thieves. That meant that insurance premiums for 205 GTI owners went through the roof, making the car a less attractive ownership proposition. Thankfully, with the assumption that today's owners will be taking great care over their investment, you should be able to find classic Peugeot insurance to suit your budget.

What's more, tighter laws around emissions meant that the 1.6 GTI was no longer feasible to produce, and that particular iteration ceased production in 1992. The aforementioned catalytic converter, meanwhile, allowed the 1.9 to soldier on for a couple more years.

What to pay…

Values for the 205 GTI in particular have risen steeply in recent years, with its reputation as an icon of 80s hot-hatch motoring cemented. Around £5,000 to £8,000 should get you a decent example; if you can stretch to around £12,000 to £15,000, meanwhile, you'll get a GTI in good condition, with relatively low miles and a full service history. And, given the fairly hard work to which a lot of 205 GTIs were subjected, the latter would probably be nice to have.

It's quite likely – especially if it's a GTI you're after – that the car's original engine has long since run its course and been replaced. In the case of the 1.9-litre car, a common replacement engine is Peugeot's very similar 1.9-litre, 16-valve unit famously used in the 405 Mi16, one of the best fast saloons of the late 80s and early 90s.

Non-GTI variants will, of course, be cheaper, and here you should be able to find a usable daily driver for around £2,000. The disadvantage, if anything, is that non-GTI cars are quite a lot harder to find on the used market.

… and what to look for

Happily for a car of its vintage, the 205 seems to have survived the years without succumbing to too much rust. Although you should always check any used 205 (indeed, any used car full stop) for corrosion, the 205 has got off lighter than some of its contemporaries. Areas to check, though, include around the roof and door edges.

There are some other checks that you'll want to do on any used 205. For example, check that the spare wheel is in its under boot cradle and hasn't been removed some time ago. Give the suspension a thorough inspection for wear and tear: 205s were known to lean into the front suspension somewhat, and suspension can, in some cases, be showing signs of kerb damage.

Petrol 205s may need new valve stem seals, which will typically set you back around £120. Those rear disc brakes on the 1.9 GTI models can be prone to rust, too.

If you want the option of top-down summer motoring thrills, the 205 did come in soft-top convertible form. The CJ is simply a soft-top version of the 1.4 petrol engine; the CTI is, you've guessed it, a GTI in cabriolet form (both 1.6 and 1.9-litre engines were available). As ever with convertibles, be sure to check that all the folding-roof business works properly before you buy.

Join the club

Being such a popular car during its lifetime, and such a lovingly maintained cult vehicle to this day, the 205 benefits from a large after sales and support community. For example, if you've got hold of a 205 GTI and want to upgrade the engine, specialists such as Spoox Motorsport may be able to help. If you have the money you could always try Peugeot’s own in-house restoration service! Always remember to check that any classic car insurance policy you are holding for your 205 will not be invalidated by any major changes like these.

When it comes to owners' clubs, you are well catered for. The Peugeot 205 GTI Owners Club, Peugeot Sport Club UK and 205 GTI Drivers should all prove great sources of expert advice. If you have a technical question, need help sourcing a part, or just want to meet some fellow 205 enthusiasts, membership of one or more of these owners' clubs should be your first port of call. What's more, many owners' clubs have ongoing arrangements with providers of classic car insurance, meaning that you may be able to get a reduction on your premiums.

Insure your 205 with Lancaster Classic Insurance

The Peugeot 205 certainly deserves its status as a classic car – especially its halo model, the extraordinary 205 GTI. If you own or are thinking of owning one of these wonderful cars, get some classic motor insurance to protect your treasured investment for years to come.

Contact us to find out more about classic car insurance.

Policy benefits, features and discounts offered may very between insurance schemes or cover selected and are subject to underwriting criteria. Information contained within this article is accurate at the time of publishing but may be subject to change.