Peugeot 106 (1993)Niels de Wit from Lunteren, The Netherlands, CC BY 2.0, via Wikimedia Commons

Peugeot 106 Rallye 1.6

1993 — France

Modern Classic (1986-2000)FrenchRally LegendsUnder $50k ClassicsAffordable Collectibles
Engine1,587 cc Inline-4 SOHC
Power103 hp
Torque103 lb-ft
Transmission5-speed manual (MA)
DrivetrainFWD
Body StyleHatchback
Weight1,819 lbs
0–60 mph9.0 sec
Top Speed121 mph
BrakesDisc (247mm) / Drum
SuspensionIndependent, MacPherson strut, coil springs / Torsion beam, coil springs

Peugeot 106 Rallye 1.6

The Peugeot 106 Rallye was one of the purest driving experiences available in the 1990s — a tiny, lightweight hatchback with the unnecessary stripped away and the essential perfected. Peugeot's recipe was beautifully simple: take the little 106 supermini, fit it with a willing 1.6-liter engine, delete the sound deadening, power steering, central locking, and electric windows to save weight, add uprated suspension and white paint with colored accents, and sell it for pocket money. The result was a car that weighed just 825 kg and could genuinely embarrass much more powerful machinery on twisty roads. The naturally aspirated 103 horsepower might sound underwhelming, but in a car this light, every horsepower counted. The unassisted steering provided crystal-clear feedback, the short-throw gearbox was a delight, and the chassis balance was pure Peugeot magic. The 106 Rallye became a legend of the grassroots motorsport scene, dominating budget racing series and hill climbs across Europe. Two generations were produced: the Phase 1 with a 1.3-liter engine and the more powerful Phase 2 with the 1.6-liter unit. Both offered an object lesson in the driving pleasure that comes from lightness, simplicity, and exceptional chassis tuning.

$5,000 – $18,000

Crash damage from motorsport use is the biggest risk — many 106 Rallyes have been raced or rallied hard. Check for evidence of repaired accident damage. Rust attacks sills, rear beam mounts, and front subframe. The engine is simple and robust. Ensure it hasn't been modified beyond recognition — standard cars are most collectible. No power steering is by design, not a fault.

The 106 Rallye was a limited production special based on the standard 106. Phase 1 (1993-1996) used a 1.3-liter engine; Phase 2 (1997) used a 1.6-liter. Production numbers were modest to maintain exclusivity in the hot hatch market.