40 years of the Peugeot 205: Why it was so Special

by Alex Robbins

It’s a tough time for the supermini. Ever more stringent safety regulations and the looming prospect of the widespread switchover to electric vehicles means affordable small cars are looking like an endangered species, with some examples (the Ford Fiesta being arguably the most high-profile) even facing the chop.

The supermini may be in decline now, but 40 years ago, small hatchbacks were the next big thing. And in 1983, Peugeot revealed one that would not only go on to redefine the company and reset its image, but that would become the benchmark against which all superminis were judged.

40 years of the Peugeot 205

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Peugeot 205 Origins

It was going to be called the 105, following on as it did from the company’s first – and slightly underwhelming – attempt at a small car, the 104. But the new car was larger, more spacious, and more upmarket; a whole different kettle of fish. It didn’t seem right to pitch it merely as an evolution.

So the name 205 was chosen instead. It was a name that would go on to become an icon, and be remembered more widely and more fondly than any of Peugeot’s other models, before or since. It was to become, as Peugeot’s French marketing for the car put it, ‘un sacré numero’, a sacred number.

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What Made the Peugeot 205 So Good?

The 205’s success was, in part, down to its clever engineering. Its independent rear suspension was compact and therefore meant the rear wheel arches didn’t intrude that much on the boot or back seats. It had also been developed as a five-door hatchback first, whereas most of its rivals could offer only three, and that gave the 205 a huge advantage among family buyers after practical small cars.

Under the bonnet sat efficient front-wheel-drive engines which, while not advanced, offered easy maintenance and good fuel economy, and lots of R&D budget was put toward ensuring the 205 was aerodynamically efficient, too, all of which meant very low running costs. The 205 was designed to be cheap to build, too, which would in turn keep list prices extremely competitive.

But if the 205’s appeal to the head was sizeable, its appeal to the heart was vast. Its styling, the work of Peugeot’s in-house design team under Gérard Welter, was chic and well-proportioned. It immediately made rivals like the Ford Fiesta and Austin Metro look dated and dumpy, and even proved smarter, more chic and more timeless than French rivals such as the Renault 5 and Citroen AX.

It drove brilliantly, too; it was light, so the suspension didn’t need to be too stiff, and that meant it was comfortable. And of course, the 205’s independent suspension setup combined with its deftness to make it particularly agile and responsive to drive.

It was, in short, practical, affordable, good to look at and fun to drive. Is it any wonder the 205 flew off the metaphorical shelves?

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A Broad Model Range

In 1983, when the car was launched, you could buy it with your choice of ‘X’ petrol engines in 1.0-litre, 1.1-litre and 1.4-litre forms, as well as – unusually for the time, in a car of this size – a diesel engine, the new ‘XUD’ of 1.8 litres.

It wasn’t until March 1984, however, that the most famous 205 of all would arrive in the form of the GTI, bringing with it the three-door body style. It was initially available only with an ‘XU’ 1.6-litre engine kicking out 104 bhp, but Peugeot responded to the threat from ever-faster rivals such as the Volkswagen Golf GTI in 1986, punching the Peugeot 205 GTI 1.6 up to 113bhp and adding the iconic 130bhp 1.9-litre version of the same engine to the range to create the 205 GTI 1.9.

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The Peugeot 205 GTI

Beloved of road testers, these hot 205s offered lithe, exciting handling and huge amounts of feedback through the steering wheel. Sometimes a little too exciting, in fact, as they could be pretty tail-happy in the wrong hands; more than one ended its life having left the road backwards through a hedge.

But treated with respect, the 205 GTI was an absolute blast, with performance on a par with the best performance cars of the day. And of course, what mattered as much as any of this in the 1980s was that the 205 GTI looked the part; with its gorgeous alloy wheels, fat tyres, red stripes and pumped-up bodykit, it most certainly did that. Today it is remembered as the definitive hot hatch.

Of course, the GTI wasn’t technically the fastest 205: that honour goes to the Group B rally car, which won the 1985 and 1986 World Rally Championship, seeing off stiff competition from 1984 winners Audi.

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Peugeot 205 CJ, CT, CTI and Diesel

The 205’s continued popularity ensured a long life, and the range grew in 1986 with the addition of de rigueur CJ, CT and Peugeot 205 CTI cabriolet models, styled by Pininfarina. Then in 1987, Peugeot replaced the now-ageing ‘X’ petrol engines with more modern ‘TU’ powerplants, though still in the same range of 1.0-, 1.1- and 1.4-litre capacities. At the same time, it gave the 205 a new dashboard design, with a crisper, more up-to-date look and better-quality plastics.

And in 1988, one more performance model was added to the range: the Peugeot 205 Rallye. It started life as a short-run homologation special, with a motorsport-spec 1.1-litre ‘TU’ engine, bored out to 1.3 litres, that produced 100bhp, and a stripped-out interior shorn of any fripperies that meant it was lighter and more agile than any other 205.

It became so sought-after that Peugeot turned it into a production model – though in the United Kingdom, we got a slightly less exciting version, with the standard 1.4-litre engine from the XS model, due to the prohibitive cost of converting the 1.3-litre version to right-hand drive.

By 1990, Peugeot decided it had probably better give the 205 a facelift, but even in the face of far more modern designs like the brand-new Ford Fiesta, the 205 still looked fresh, so Peugeot didn’t have to work too hard; in the end, the facelift consisted of new indicators at the front, while at the rear, there were new light clusters with a smooth panel between them, replacing the old ribbed item.

With 1991 came a turbo diesel in the standalone STDT version which, with its GTI-style looks, made it an attempt at a diesel-powered warm hatch. Also in 1991, notably, Peugeot launched the 106, the car which – along with the later 306 – would attempt to replace the 205.

The 205 was so beloved, however, that demand continued to be high. Good though the 106 and 306 were, neither the top end of the former’s range nor the lower end of the latter could offer convincing replacements for a car that was so perfectly sized for so many people. So in the end, it wasn’t until 1996, after a succession of sales-boosting limited editions, that the 205 was finally pensioned off, and by that time, a proper, like-for-like replacement was on the horizon: the 206 arrived in 1998.

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Owning a Peugeot 205 Today

All of which means even the youngest 205s are now almost 30 years old, and most are well beyond that. This is well and truly a classic car nowadays, then, but the 205 is a great one to choose, especially if you want to experience an iconic modern classic for a very reasonable sum.

Granted, GTi versions are now getting extremely pricey, as indeed are Rallyes. However, a tidy XS will cost you around £5,000, which is also roughly what you’ll pay for a good, usable convertible model. And you can still pick up a good, clean example of a more humble version for less than £2,000.

That’s exactly what I did a couple of years back: a 1989 1.1 GL, to be precise, for which I paid just under £900, though it would be worth more now what with the rise in values of every used car.

I only owned it for a few months – I bought it on the spur of the moment and didn’t really have a need for it – but during that time I took it to a car show, used it around town, and even drove it to Peugeot’s museum at its factory in Sochaux, in the Franche-Comté region of France.

And covering so many miles in this little car, I grew to understand what made the 205 so special. It’s not just one thing, though. Style - even with the black plastic bumpers and wheel trims of my mid-range model - is one of the reasons it was so attractive. There’s comfort, too: the soft, supple suspension offers a ride that belies this car’s compact size and low price, and bests most - if not all - of its more modern equivalents.

There’s space, of course, for four adults and their luggage, partly as the result of the surprisingly sizeable boot. With so much glass and spindly pillars, there’s brilliant visibility, too. And there’s reliability; the 205 is mechanically very simple, so there isn’t much to go wrong, and anything that does is a doddle to fix, either yourself, or with the help of any skilled mechanic worth their salt.

Most of all, though, the 205 is fun, even in this relatively unassuming form. It skips around bends and skims over crests joyfully, and even the little 1.1-litre engine feels peppy and responsive. It’s as though the whole car is grinning constantly, revelling in being driven, whether you’re pushing it hard or simply cruising along.

And when so many modern cars are big, heavy and complex (and, we should mention, much safer as a result: the 205’s crash protection is vestigial by comparison), that makes the 205 a truly refreshing classic to own and drive.

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Peugeot 205 Buying Guide

First tip: check for rust. Later 205s are much better at resisting it (the 205 was fully galvanised from 1987 onwards), but all 205s will suffer from it by now, to a greater or lesser degree. Sills, the boot floor, and all along the edges of the wings – both outside the car and under the bonnet – are common points of failure. Happily, repair is still relatively easy.

You don’t need to worry too much about a 205’s engine: all are robust units, so if they’ve been well maintained, they should last. Don’t forget to check when the rubber timing belt was last changed on the later TU engines: it needs to be done every five years or 75,000 miles, whichever comes sooner.

Gearboxes are just as long-lasting. Don’t be put off by a slightly soggy throw, as it’s probably just the gear linkage, but do look out for cars that have been abused, as evidenced by crunching between the gears, as well as slipping clutches.

Avoid 205s that creak from the rear end over bumps: it could be a sign of worn suspension arm bearings, and these can actually damage the axle itself, which is a costly job to replace. Of course, you’ll want to listen for any other suspect knocks or rattles from the suspension, too. And if the steering feels slack, wobbly, or excessively heavy, walk away. A 205 should feel light and sharp to drive, even if it doesn’t have the benefit of power-assisted steering.

Buy with your eyes open, though, and a 205 should provide years of reasonably reliable service, as well as being simple and cheap to maintain. Throw in the fact a 205 is a delight to drive and a joy to live with, and it isn’t hard to see how they make such brilliant modern classics.

FAQs

How many Peugeot 205s are there left?
According to the website howmanyleft.co.uk, there are 3,181 examples of the Peugeot 205 still registered for use on the road (at the time of writing). By far the most popular model is the 205 GTI, of which more than 1,200 remain.

When was the last Peugeot 205 made?
Although the 205 bowed out in 1996 in the UK, production continued in France until 1998, with the final models being sold in Argentina in 1999. The last 205s featured the 1.8-litre diesel engine in GLD specification.

What was the first model of Peugeot 205?
The initial line-up of the 205 consisted of the entry-level models, simply badged 205; GL base models; the mid-range GR; and the more exclusive GT. When three-door versions arrived, they were differentiated from the five-doors by their use of an ‘X’ instead of a ‘G’ in the trim level, so the three-door range ran base, XL and XR, although the XS was the exception to the rule, being equivalent to the five-door GT.

It’s worth noting, of course, that the 205 GTi was never offered as a five-door, despite its badge starting with a ‘G’.

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Alex used to be the used cars editor for What Car? and Autocar as well as the Daily Telegraph's consumer motoring editor. He covers all manner of new car news and road tests, but specialises in writing about used cars and modern classics. He's owned more than 40 cars, and can usually be found browsing the CarGurus classifieds, planning his next purchase.

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