IsItAGoodCar
Reliability Guide

Common Problems with the
1998 Peugeot 106

We've identified 3 known issues that can affect the 1998 Peugeot 106. 2 of these are serious faults that could be expensive to repair.

3
Known Issues
2
Serious
1
Moderate
0
Minor

All Known Issues

Rear Trailing Arm Axle Bearing Seizure

SeriousSuspension & Chassis

The rear suspension on the 106 uses a transverse torsion beam tube with trailing radius arms riding on needle roller bearings. Over years of UK rain, road grit, and road salt, the outer rubber water seals perish. Water enters the axle tube, corroding the needle bearings and gouging the hardened steel pivot shafts. As the bearings collapse, the rear wheels tilt inwards at the top (excessive negative camber). In advanced stages, the inner tyre sidewall rubs directly against the inner wheel arch tub.

Est. Repair Cost: £300–£600
Warning Signs:

Rear wheels visibly tilting inward at the top (negative camber), Inner edge of rear tyres heavily scrubbed or worn bald, Creaking, squeaking or loud knocking from rear suspension over bumps, Rear ride height sitting unevenly or seized solid with zero suspension travel

What to Inspect:
  • Stand 10 metres directly behind the car on level ground to verify both rear wheels sit vertical without tilting inward
  • Check gap between inner tyre sidewall and inner wheel arch liner for signs of contact
  • Bounce the rear of the car firmly to test for smooth damping travel without metallic groaning
Verified by IsItAGoodCar Research TeamUpdated

TU Engine Cylinder Head Gasket Oil and Coolant Leaks

SeriousEngine

The PSA TU eight-valve petrol engine family (1.1, 1.4, and 1.6) is notorious for head gasket degradation. Specifically, the pressurized oil feed gallery passes through the front-left corner of the cylinder head, directly above the alternator. The factory composite gasket deteriorates around this corner, causing engine oil to weep externally down the front face of the block. If neglected, the failure breaches the coolant passages, causing coolant loss, oil-coolant cross-contamination, and overheating.

Est. Repair Cost: £350–£750
Warning Signs:

External engine oil weeping down front-left corner of engine block above alternator, Creamy mayonnaise-like oil sludge under engine oil filler cap, Coolant level dropping without visible hose leaks, Engine running hot or coolant bubbling in expansion reservoir

What to Inspect:
  • Shine a torch at the front-left corner of the cylinder head directly above the alternator to check for fresh oil puddling
  • Inspect underside of oil filler cap and dipstick for milky emulsion
  • Check coolant expansion bottle for oily film or discolouration
Verified by IsItAGoodCar Research TeamUpdated

Stiff or Snapping Clutch Cable and Pedal Quadrant Wear

ModerateGearbox & Transmission

The manual 106 uses a mechanical clutch cable coupled to a plastic self-adjusting toothed ratchet quadrant mounted atop the clutch pedal box. Over time, road dirt and heat cause the inner steel cable to fray and bind inside its protective outer nylon sheath. The resulting excessive pedal resistance puts heavy mechanical stress on the plastic quadrant teeth, causing the ratchet to slip or the cable to snap completely, leaving the pedal stuck flat to the cabin floor.

Est. Repair Cost: £80–£220
Warning Signs:

Clutch pedal feels abnormally heavy or stiff to depress, Sudden snapping or popping noise from pedal box with pedal dropping to floor, Gears crunching when engaging first or reverse gear due to incomplete clutch disengagement, Clicking noise under dashboard when depressing clutch pedal

What to Inspect:
  • Press the clutch pedal repeatedly to ensure smooth, lightweight resistance throughout entire stroke
  • Inspect plastic ratchet quadrant above pedal pivot for chipped or stripped teeth
  • Check clutch cable under bonnet where it connects to gearbox release arm for frayed strands
Verified by IsItAGoodCar Research TeamUpdated

Buying Tips for 1998 Peugeot 106

  • Inspect the rear axle from behind to confirm both rear wheels are completely vertical; inward tilt or negative camber indicates collapsed needle roller bearings
  • Check the front-left corner of the engine block just above the alternator for external oil weeping, a hallmark of ageing TU cylinder head gaskets
  • Operate the clutch pedal by hand and foot to verify it moves smoothly; a heavy or stiff pedal indicates a binding clutch cable and worn plastic ratchet quadrant
  • Inspect the front inner wings, sills, and boot floor corners for structural corrosion, especially around the spare wheel carrier and suspension mounting points
  • Listen for excessive valvetrain clatter on a cold startup; mechanical tappets require periodic manual clearance adjustment with feeler gauges