Common Problems with the
1998–2001 Peugeot 206

We've identified 4 known issues that can affect the 1998–2001 Peugeot 206. 1 of these are serious faults that could be expensive to repair.

4
Known Issues
1
Serious
3
Moderate
0
Minor

The 1998–2001 period has 2 more issues than the Peugeot 206 average across all year periods.

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.

Most affected: 1.4 8v, 1.4 16v, 1.6 16v

Estimated cost: £500–£1,200Affects: 19982010Often appears around: 60,000–100,000 miles

Typical symptoms

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

What to inspect before you buy

  • Check coolant level and condition
  • Look for oil in coolant or vice versa
  • Test for exhaust gases in coolant

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.

Most affected: All variants

Estimated cost: £80–£200Affects: 19982012Often appears around: 50,000–100,000 miles

Typical symptoms

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

What to inspect before you buy

  • Test all doors with the key fob
  • Check driver door lock from inside and outside

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.

Most affected: All variants

Estimated cost: £200–£600Affects: 19982010Often appears around: Age-related, especially coastal cars

Typical symptoms

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

What to inspect before you buy

  • Inspect the rear beam axle underneath for heavy pitting or flaking rust
  • Check MOT history for corrosion advisories

Lambda Sensor Failure

ModerateEngine

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

Most affected: All petrol variants

Estimated cost: £100–£300Affects: 19982010Often appears around: 60,000–100,000 miles

Typical symptoms

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

What to inspect before you buy

  • Scan for lambda sensor fault codes
  • Check engine management light history

Buying Tips for the 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

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