IsItAGoodCar
Reliability Guide

Common Problems with the
1998 Peugeot 206

The 206 launched in the UK as one of Peugeot's biggest sellers, offering cheap and simple motoring. The EPAS steering column and rear beam axle corrosion became well-known failure points.

What changed for 1998

  • •UK launch of 206 supermini
  • •Electric power steering introduced
  • •Wide range of petrol and diesel engines
  • •Cheap and simple mechanicals

Common MOT watch-outs

  • !EPAS column failure
  • !Rear beam axle corrosion
  • !Lambda sensor failure
4
Known Issues
1
Serious
3
Moderate
0
Minor

All Known Issues

Head Gasket Failure (1.4/1.6 Petrols)

SeriousEngine

The 1.4 and 1.6 petrol engines are known for head gasket failures, especially on cars that have been overheated or poorly maintained. Symptoms include coolant loss, white exhaust smoke and overheating.

Est. Repair Cost: £500–£1,200
Warning Signs:

Overheating, White exhaust smoke, Coolant loss without visible leak, Mayonnaise-like oil under filler cap

What to Inspect:
  • Check coolant level and condition
  • Look for oil in coolant or vice versa
  • Test for exhaust gases in coolant
Verified by IsItAGoodCar Research Team

Central Locking Actuator Failure

ModerateElectrics & Electronics

The door lock actuators fail regularly on the 206, leaving doors unable to lock or unlock remotely. The driver's door is typically the first to go.

Est. Repair Cost: £80–£200
Warning Signs:

One door will not lock remotely, Central locking warning light, Key fob range reduces

What to Inspect:
  • Test all doors with the key fob
  • Check driver door lock from inside and outside
Verified by IsItAGoodCar Research Team

Rear Beam Axle Corrosion

ModerateSuspension & Chassis

The rear beam axle can corrode severely on UK cars, particularly in salt-laden coastal areas. Heavy rust can lead to structural weakness and MOT failure.

Est. Repair Cost: £200–£600
Warning Signs:

Clunking from the rear, Visible heavy rust on the rear axle, MOT failure on rear axle corrosion

What to Inspect:
  • Inspect the rear beam axle underneath for heavy pitting or flaking rust
  • Check MOT history for corrosion advisories
Verified by IsItAGoodCar Research Team

Lambda Sensor Failure

ModerateEngine

The oxygen (lambda) sensor fails regularly, causing poor fuel economy, failed emissions tests and engine management warning lights.

Est. Repair Cost: £100–£300
Warning Signs:

Engine management light, Poor fuel economy, Failed emissions test, Rough idle

What to Inspect:
  • Scan for lambda sensor fault codes
  • Check engine management light history
Verified by IsItAGoodCar Research Team

Buying Tips for 1998 Peugeot 206

  • ✓Check for electric power steering (EPAS) warning light; column failures are common
  • ✓Inspect the rear beam axle for heavy rust, which can cause MOT failure
  • ✓Test the central locking on all doors; actuator failures are frequent
  • ✓On HDi diesels, listen for injector chuffing and check turbo oil feed pipe
1999–2001
Check a 1998 Peugeot 206 by Registration