We’ve all been there: scrolling through eBay, a few glasses to the good. That’s fine, no harm done. The trouble starts when you wake up the next morning with the post knocker in your head and an email saying, ‘You’ve won.’ Won what, exactly? And then it dawns on you. Oh crikey, I think I’ve bought a car. Then it turns out that you haven’t bought a car, as such, but a project car. A project that, in the cold light of day, you realise you have neither a) the time and b) the money to complete. Hence why there are more than a few such ‘projects’ still lingering under a cover or parked in a garage, with owners hoping that the nightmare will simply disappear.

Well, that first stage (the sozzled, bidding bit) is what happened here. But Steven, the brave soul who owns this Peugeot 106 Rallye, didn’t sit looking at it weeping. He went on to restore it, and not half-heartedly, either, as you can tell from the assorted photos. It all started when he and his partner tried to buy back their old 106 GTI, which, it turned out, no longer existed. It had been crashed and therefore was an ex-106 GTI. That’s when the idea of a Rallye came to mind, the alcohol began to flow, and…hey presto, this car appeared.

When it did it looked fine on the surface, with just a few small dents around the bodywork. The plan was to run it around for a bit, enjoy it, then sell it, and in the meantime do a bit of light remedial work to tidy it up. It ended up being a full-on restoration, though, and to factory spec. Steven does have a slight advantage here. He owns a restoration business called Classic Revival, so for him it wasn’t a dive into the abyss, and more of a busman’s holiday – a ‘little something’ to do on the side. In fact, he does a lot of work with Octane magazine, restoring the editorial cars and providing features that cover the work. The point is, he knows what he’s doing.

It became apparent, once the car was up on a ramp, that it needed more than a light refresh. The notoriously lightweight 106 Rallye had shed even more weight thanks to the rot found in the boot floor, inner sills and around the front arches. That made the decision: strip the car completely and go the whole hog. Once the car was a shell, the rust was cut out and new sections welded in, the original paint removed to bare metal, and before a coat of new paint was applied the chassis alignment was checked and any panel dents straightened, not filled. Steven told me he even went to the effort of photographing all the wiring looms before stripping them, cleaning them, checking the wiring for damage and finally rebuilding and re-taping them to replicate the factory finish.

As you can imagine, it was tricky getting hold of parts, but Peugeot did have a few OEM bits left – from small stuff, such as new nuts and bolts, to chunkier components, including most of the suspension parts. Steven also managed to get hold of an original Rallye sticker set, although he’s still working on finding one last bit: an original Blaupunkt head unit. If you have one, give him a call. He reckons he’s cleaned out all the 106 Rallye parts the factory had left – so sorry if you’re about to embark on a similar project. The rest of the mechanicals have been checked over, with items replaced as required before everything was reassembled to the standard you can see in the numerous pictures accompanying the advert. They’re well worth a look, by the way.

On top of what’s been replaced, the car comes with a paper trail to show its provenance, including the original bill of sale, loads of past receipts and service records. And it’s an original phase one car. That means the competition-sourced 1,294cc TU four-pot (later cars came with the 1.6 GTI engine) is similar to the original 205 Rallye’s – but with fuel injection rather than those mercurial Webers. The 106 Rallye’s TU engine also had different manifolds to other TU’s and the cylinder head from the 1.4 XSi, which meant a higher compression ratio of 10.2:1. Power was 100hp at 7,200rpm, and while that doesn’t deliver breakneck acceleration it’s enough for a thoroughly enjoyable, back-to-basics peppiness thanks to the Rallye’s 810kg kerbweight.

In short, the 106 Rallye is a great car, and this one should deliver all the qualities that made it great thanks to the time, care and attention that has gone into rebuilding it. Apparently, Steven’s partner refuses to drive it because she’s worried it’s too clean to risk damaging, hence why it’s up for sale. That’s an understandable concern, but one I hope this car’s next owner will be able to move beyond and enjoy the car as it should be enjoyed: flat out with the engine singing – and thanks to the Rallye’s simple ethos, at halfway sensible speeds. Yes, the price is at the top end of what a 106 Rallye will cost these days, but on this occasion, you can see why it’s not the cheapest example. And Steven says he’s open to sensible offers if you’re smitten, which I definitely am. 

Engine: 1,294cc, four cylinder, naturally aspirated
Transmission: five-speed manual, front-wheel drive 
Power (hp): 100 @ 7,200rpm
Torque (lb ft): 81 @ 5,400rpm
CO2: N/A
MPG: N/A
Recorded mileage: 133,000
Year registered: 1995 
Price new: £8,995
Yours for: £17,500