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The early Peugeot 106 Rallye’s 1.3-litre fuel-injected engine may only have 100bhp to send to the front wheels through its five-speed manual gearbox, but at just 825kg it is around 40% lighter than Peugeot’s current hot hatch flagship, the 308 GTi. Largely as a result of its featherweight status, this no-frills homologation special has a reputation for being much greater than the sum of its parts as a driver’s car. This 1994 example shows 79,592 miles on the odometer.

While more than 1,000 were originally imported to the UK, by 2003 records show that just 969 were registered. Today, around one third of that number are recorded on public DVLA data streams, and fewer than 100 examples of the S1 Rallye are believed to be roadworthy and licensed.

First registered in the UK in December 1994, the car was later exported to Ireland where it remained until 2019. The seller, who has owned the car for around 18 months, subsequently drove it back to Britain and had the original registration reinstated.

This unrestored car is mostly original and wears its miles on its sleeve. The exterior shows one or two chips missing from the driver’s side rally stripes and the rear Peugeot logo, while surface rust is just beginning to appear in places such as the front of the inner bonnet panel around the ovoid cavities, plus the underside on and around the rear suspension in particular – all shown in the gallery.

The ‘Bianca’ paint is in generally good condition, although the seller notes some overspray in the engine bay which could hint at some amount of repainting having been done previously, plus a stone chip on the front of the bonnet and more on the bumpers and wheel arch trims. The standard colour-matched steel wheels each have some marks around the outer rims, with one of them showing spots of rust as well. The car has been lowered and also sports a raucous Pug Sport stainless steel exhaust system, an aftermarket air filter, and painted door mirror caps.

The black-on-red Rallye interior is in very good condition, with the seller only noting a slight tear on the right-hand driver’s seat bolster. The original Clarion stereo is currently not operational and there are some scratch marks on the surrounding trim, while the gear knob has been replaced with one from a later Peugeot. The interior is otherwise correct down to the distinctive red carpets and black Rallye-branded floor mats.

The car was serviced at Clifton Mews Garage in February 2019 at 79,112 miles, when it received new oil, a new alternator, a new oil pressure switch and a new rocker cover gasket. Previously, the cam belt was replaced at 78,000 miles according to what has been written on the cam belt cover. Earlier service history is missing, although two previous owners vouch for its continued maintenance during their ownership and there are some receipts for work done. The engine is noted as occasionally struggling to idle when very hot, but it starts first time without issues in normal use.

The car passed an MOT with no advisories in May 2019, after the seller fitted a sports cat to the aftermarket exhaust, while the tyres are described as being in good condition with plenty of tread. A previous owner still has the car’s handbook and can post it to the new owner on request, while the car comes with documents for the reinstated registration and a handful of receipts and the MOT certificate.

Whether the next owner chooses to lightly restore this Peugeot 106 Rallye or drive it as-is without worry, this cult classic hot hatch is presented in largely original condition, ready and eager to put a smile on the face of whoever gets behind the wheel.

All cars and motorbikes on Collecting Cars are run through an online HPI check. This vehicle shows no insurance database markers for damage or theft, and has no finance owing.

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