Peugeot 208 vs Peugeot 106: is this 33-year-old diesel hatchback the ultimate money-saving hack?
Car changing is a big deal
We’ve been living with a hybrid Peugeot 208 for the last few months, and while it has been returning impressive fuel economy, one member of the Carwow team has a car which is even cheaper to run. News editor Jamie Edkins has been comparing the two.
Diesel is falling out of fashion at a pretty rapid rate. Sales dropped by almost 16% in 2025 compared to the previous year, and hybrid cars are getting more popular as they become more affordable.
Our Peugeot 208 is a perfect case in point. It has a 1.2-litre petrol hybrid engine, but there’s no option of a diesel in the range. Back in the 1990s however, Peugeot was famed for its oil-burners. Pretty much every car in the range could be specced with a frugal diesel engine, including the tiny 106 hatchback.
Deputy reviews editor Tom Wiltshire owns a 1993 diesel 106, so I thought it would be good to get it together with our 208 to see just how far small, frugal Peugeot models have come in the last three decades.
Remember, you can buy a brand new or used car right here on Carwow. And you can sell your car, too. We’re here to help you through every step of your car-changing journey.
Peugeot 208 vs Peugeot 106: design
Peugeot’s designs have come quite a long way in the past 30 years, and these two cars don’t share much beyond the basic hatchback shape.
This is mainly because the new 208 is actually inspired by the Peugeot 205, the car which came before the 106. Little details like the notch behind the rear windows and the black cladding around the wheel arches are a nod to that car, but this is by no means a retro rip-off.
The 208 is one of the most striking small cars you can buy. The big grille and “lion’s claw” headlight design really stand out, and there are plenty of sharp creases and complex curves to make it look much more premium than most cars at this price point.
In contrast, the old 106 is beautifully restrained. I love the way this car looks – not that I’d ever tell Tom that, of course. It’s a really neat bit of styling with perfect proportions and clean lines. It’s not as in-your-face as the 208, it’s just handsome.
Peugeot 208 vs Peugeot 106: interior and technology
I can rattle through the 106’s interior tech quite quickly, because there isn’t any. It comes from a simpler time when small cars were pretty basic inside.
You get a tape deck, which isn’t working in this car, manual windows, manual mirrors and a clock in place of a rev counter. It’s honestly quite refreshing to drive something which doesn’t have a flatscreen TV on the dashboard or 50 safety systems bonging away at you.
However, for daily use the new 208 has plenty of toys to help make your journey a bit more enjoyable. Smartphone mirroring is one of my favourite features in any new car, and the 208’s dashboard design is certainly more interesting with its multiple layers.
It’s amazing how far small cars have come over the years, because the 208 feels posh enough to give cars in the class above a run for their money. You could downsize from something like a 308 without feeling like you’re downgrading.
Peugeot 208 vs Peugeot 106: engines and driving
Our Peugeot 208 has a 1.2-litre petrol hybrid engine under the bonnet with 145hp, and 0-60mph is dealt with in 8.1 seconds. It’s pretty spritely for an efficient small car, and it’s also fantastic over the bumps.
It’s really comfortable, but it’s also quite good fun to chuck around corners. The steering is sharp and direct, and the small steering wheel adds to the sense of sportiness. It’s one of the best-driving small cars out there.
But the 106 is also a riot in its own way. Under the bonnet is a 1.4-litre, non-turbocharged diesel engine which had 50hp at some point. It’ll do 0-60, allegedly. It is, without question, the slowest vehicle I’ve ever driven. Sorry Tom.
The thing is, this means you can just put your right foot all the way down, and keep it there. The non-power steering feels great once you’re up to speed, although it’s a proper workout when you try and do a three-point turn, and it corners really sweetly.
The 208 is a very good car to drive, but the 106 had me laughing for the entire journey. Most of that is the novelty of driving something so stripped-back, but I am still a big fan of this old Peugeot.
Peugeot 208 vs Peugeot 106: running costs
What the 106 lacks in speed it makes up for in fuel economy, because the mpg figure is almost higher than the top speed.
Tom has owned this car for six years now, and in that time he’s taken it on a road trip to Sweden and covered many thousands of miles around the UK. It will return a whopping 77mpg in the real world, which is more than any petrol, diesel or hybrid car on sale in the UK today. Plug-in hybrids have a three-digit official figure, but none of them will ever get that in the real world.
Our 208 will do 65mpg according to Peugeot, and we’ve seen an average of around 60mpg over the last 1,500 miles. That’s impressive, but it’s still some way off the old car.
To put that into perspective, Tom’s 106 will cost you around eight pence per mile in diesel, while the 208 will cost 10 pence per mile. Over 8,000 miles per year, that works out to a fuel saving of £135.
Peugeot 208 vs Peugeot 106 verdict: is the old car a money-saving hack?
In terms of fuel, yes. The 106 is also way cheaper to buy than a new 208, with decent examples fetching between £3,000 and £5,000. That is if you can find one of course. Our 208 costs over £30,000, but you can save an average of £5,000 when you buy though Carwow.
But am I really suggesting you buy a 33-year old Peugeot instead of a brand new one? No.
As much as I love Tom’s 106, I also like having creature comforts like cruise control and air conditioning. Airbags are pretty nice as well, and something of this vintage will require quite a lot of maintenance to keep on the road.
What I’ve learned from driving these cars together is Peugeot knows its way around a small, fun and economical car. The 106 is fantastic, its spirit lives on in the new 208.
Car change? Carwow!
Looking for a new set of wheels? With Carwow you can sell your car quickly and for a fair price – as well as find great offers on your next one. Whether you’re looking to buy a car brand new, are after something used or you want to explore car leasing options, Carwow is your one stop shop for new car deals.
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