Peugeot 106 Rallye S2

Here it is. After many months of hard work, we are incredibly proud to present this Peugeot 106 Rallye Series 2.

We purchased the car in November 2025 as an unfinished restoration project from its previous owner, an ex-Peugeot technician. Like so many projects, life got in the way, and it simply lost momentum amongst his many other commitments.

When we first viewed the car, we were genuinely impressed by the standard of work already completed. The shell had been stripped completely and the underside meticulously restored to an excellent standard. The suspension had been fully rebuilt with refreshed bushes throughout, components professionally powder-coated where required, before being refitted to a freshly painted underside to create a superb rolling shell.

The engine had also been removed, allowing the engine bay to be thoroughly cleaned and repainted before the drivetrain and sections of the interior were reinstalled. This is ultimately where the project came to a halt.

Recognising the quality of the foundations already in place, we knew it deserved to be finished properly.

Our first step was to entrust the mechanical completion to Peugeot specialists Pug1Off in Brackley. A bill of over £4,000 later, the Rallye benefited from a cambelt and water pump replacement, major service, new power steering pump, together with countless smaller jobs that inevitably arise when recommissioning a project of this nature. Every invoice is present and available for inspection.

The result is everything a 106 Rallye should be. The engine pulls strongly, feeling every bit as lively as its original 102bhp suggests, while the steering and chassis deliver the wonderfully lightweight, razor-sharp driving experience these cars have become famous for. Sitting on a brand-new set of tyres, it feels eager, agile and hugely rewarding to drive.

Mechanically complete, the car was then entrusted to our bodyshop. No structural welding was required whatsoever; this stage was simply about refreshing and improving the overall presentation.

The reality is that this project has never made financial sense. The time, effort and investment far outweigh any commercial return, but that’s often the case with cars like these. Some projects deserve to be saved simply because they’re worth saving.

Perhaps this little 1990s icon may never have returned to the road without that commitment. Thankfully, it has, and we’re delighted to have played a part in preserving one of Peugeot’s finest driver’s cars for the next enthusiast to enjoy.

Good homes need only apply.