Peugeot 306: a characterful classic

The Peugeot 306 remains a beloved classic for anyone who enjoys an analogue driving experience with punch. This compact 1990s hatchback combines affordable accessibility with sporty ambitions, especially in the GTI-6 variant, which is still regarded as one of the last true hot hatches. Yet this icon has its own weak spots: notorious rear axle issues, electrical quirks and engine troubles. These problems are more common with cars of this age. Want to know what to look out for as an owner or buyer?

Why the Peugeot 306 is still a favourite among enthusiasts

The Peugeot 306 appeared in 1993 as the successor to the 309 and remained in production until 2002. The model combined everyday practicality with sporty potential, and was available as a hatchback, saloon and cabriolet. Its appeal lies in the way it drives: direct steering, low weight and a chassis that responds well on twisty roads. The 1.6 variants offer reliability and efficiency for daily use. The 2.0-litre S16 and especially the GTI-6 (the sporty range-topper with a 6-speed gearbox) really set enthusiasts’ hearts racing.

The GTI-6 is the showpiece of the range. With 167 to 170 bhp from an enlarged 2.0-litre engine and a precise 6-speed gearbox, this hot hatch delivers a very special driving experience. It feels like a rally car on public roads. Power builds up linearly to 6500 rpm, throttle response is instant and the weight of around 1200 kilograms makes it very agile. Phase 2 models from 1997 onwards received improved engines and chassis, plus better rust protection.

The overall reliability of a classic

A Peugeot 306 is now between 20 and 30 years old. Wear and age take their toll, no matter how well the car has been maintained. Car problems with Peugeot models from this era are often related to rubber components. These harden over time. Electrical connections oxidise. Metal rusts. The TU and XU engine series (Peugeot’s internal engine types) are reliable in themselves, but they do require consistent maintenance. Many issues can be prevented with regular checks and timely replacement of wear parts.

The notorious rear axle: a common headache

The most infamous issues involve the rear axle. The rear hub and torsion bar bearings are known weak spots. These bearings carry the weight and absorb impacts, but can already develop play after 80,000 kilometres. Symptoms include clunking noises over bumps, a rattling sound on rough surfaces and, in extreme cases, nervous handling or a rear end that feels like it is sliding in corners.

The bearings are located on the inside of the torsion arm, which makes them difficult to replace. If there is play, the entire torsion bar often has to be replaced, which is labour-intensive. Regularly check for play by pulling on the wheels while the car is on a lift. If you hear metallic noises or feel movement, it is time to act. Do not leave this too long, because worn bearings will also damage other components.

Electrical faults: from window mechanisms to central locking

Electrical problems are common on the 306. The electric window switches and mechanisms are prone to wear. The mechanisms inside the doors age, causing windows to move slowly or get stuck halfway. Sometimes lubricating the rails helps, but often the entire mechanism has to be replaced.

The central locking can also play up. Doors that no longer unlock remotely or fail to lock are a frequent complaint. This often points to faulty door lock motors or wiring in the door pillars. That wiring breaks after years of flexing when opening and closing the doors. The wiper stalk can also give trouble, with the intermittent setting no longer working or the wipers unexpectedly continuing to run.

Common symptoms:

• Slow-moving or stuck electric windows
• Central locking that does not respond to the remote
• Windscreen wipers that will not stop or will not start
• Flashing dashboard warning lights without a clear cause

Engine issues: from the XU series to HDI engines

The petrol engines in the 306 come from the TU and XU series. These are generally reliable, but they do have specific points to watch. Oil leaks around the rocker cover are common due to hardened gaskets. These leaks are usually visible and can lead to oil consumption. Replace the gasket in good time to prevent contamination and fire risk.

On the XU 16-valve engines, the head gasket is a known weak point. Overheating or poor maintenance can cause the head gasket to blow. This can be recognised by the following symptoms: white smoke from the exhaust, oil in the coolant, or loss of compression. It is an expensive repair that requires removal of the cylinder head.

The timing belt must be replaced according to schedule, usually every 80,000 to 100,000 kilometres. The XU engines are interference engines. This means that valves and pistons move in the same space. If the belt snaps, the valves and pistons collide. This results in severe engine damage. Check the service history and replace the belt as a precaution if in doubt.

Diesel versions with HDI engines (Peugeot’s common-rail diesel engines) often suffer from injection problems. Blocked injectors cause rough idling, smoke and loss of power. This is especially common on cars that mainly do short trips or are filled with low-quality fuel. Regular use of injector cleaner and long runs on the motorway help to prevent this.

The cooling system: vital for engine longevity

The cooling system is a crucial component that is often underestimated. The radiator can develop leaks due to age or stone chips. This leads to coolant loss and overheating. Regularly check the coolant level and look for patches under the car after parking.

The water pump runs continuously with the engine. Over time it will start to leak or make noises. A rattling or squeaking sound from the engine bay often points to a worn water pump. Replacement is labour-intensive, as the timing belt usually has to be removed as well, but delaying it can lead to overheating and engine damage.

The thermostat regulates the temperature of the coolant. A faulty thermostat that sticks closed causes overheating. If it stays open, the engine will not warm up quickly enough, which leads to higher fuel consumption and wear. Replace the thermostat preventively during major services.

Transmission and clutch: the shifting experience

The manual gearboxes in the 306 are generally durable. The BE3 and BE4 ’boxes, especially the precise 6-speed in the GTI-6, are known for their pleasant shift feel. However, problems can arise at high mileages. Worn synchromesh rings make gear changes stiff, particularly when cold. You will hear this as crunching noises when changing gear.

The clutch wears through normal use and needs replacing on average every 120,000 to 150,000 kilometres. Symptoms of a worn clutch include slipping under acceleration, a high bite point and difficulty engaging gears. The release bearing can also make noises: a hissing or humming sound when pressing the clutch pedal points to this.

The driveshaft and CV joints develop play or become damaged. This shows up as clicking or knocking noises when steering or accelerating from a standstill. Check the rubber boots for splits, as dirt entering will accelerate wear.

Bodywork and interior: fighting rust and wear

Rust is a well-known issue with French cars from the 1990s, and the 306 is no exception. Typical areas where rust takes hold are the wheel arches, especially at the rear, the bottoms of the doors, the sills and the rear bumper mounting points. Phase 1 models up to 1997 are more susceptible than later cars with improved protection.

When buying, thoroughly inspect the underside of the car. Surface rust can still be treated, but metal that has rusted through requires welding or new panels. Preventive treatment with Waxoyl or a similar product helps extend the life of the car.

The interior has its own types of wear. Seat upholstery can fray or tear, especially in the GTI-6 with its sporty seats. The centre console and door handles turn dull or come loose as clips harden and break. The heating and ventilation can become sluggish due to dirty flaps or a worn heater fan. The latter is noticeable through noises or a blower that only works on the highest setting.

Preventive maintenance: how to keep your 306 in top condition

Good maintenance is the key to a reliable 306. Follow the prescribed service schedule and replace filters, fluids and belts on time. Use oil of the correct quality and viscosity according to the factory specifications. This is extra important for XU engines with rocker arms.

Regularly check for leaks, unusual noises and abnormal handling. If in doubt, have a specialist take a look, because small problems quickly turn into major repairs. Treat the bodywork preventively against rust, especially after winter when road salt has done its work. Rinse the underside of the car regularly.

Practical tips for owners:

• Replace the timing belt preventively according to the schedule
• Check the cooling system annually for leaks and renew coolant every two years
• Lubricate hinges, locks and cables to help prevent electrical issues
• Spray the underside with a protective coating against rust
• Regularly drive longer distances so the engine and exhaust reach full temperature

Buying tips: what to look for in a used Peugeot 306

When buying a used 306, a thorough inspection is essential. Test the rear axle by driving over bumps and listening for clunking noises. Pull on the wheels to feel for play. Check the bodywork for rust, especially around the wheel arches, sills and the bottoms of the doors.

Start the engine from cold and listen for unusual noises. White smoke at start-up can indicate head gasket problems; blue smoke points to oil consumption. Check the coolant level and look at the colour: cloudy or oily coolant is a red flag.

Test all electrical functions: windows, central locking, lights and wipers. Try the heating and air conditioning on all settings. Take a test drive and pay attention to the clutch: it should engage smoothly without slipping. Shift through all the gears and listen for grinding noises.

Ask for the service book and check whether the timing belt has been replaced. If there is no proof, assume it needs doing soon. Check the MOT history for recurring issues or previously failed items.

Checklist for buyers:

• Check the rear axle for play and noises
• Inspect the bodywork for rust spots
• Test starting on a cold engine
• Try all electrical functions
• Take a test drive and assess clutch and gearbox
• Verify service history and timing belt replacement
• Inspect the cooling system for leaks and clean coolant

Is the Peugeot 306 worth it despite its issues?

The Peugeot 306 remains an appealing classic for fans of an analogue driving experience and affordable performance. The problems are well documented and often preventable with good maintenance and timely checks. The rear axle needs attention, electrical quirks belong to the era and rust is something to watch for on any older French car. Even so, this hatchback offers driving pleasure that modern cars often lack: direct, communicative and fun on twisty roads.

Anyone prepared to invest in maintenance and tackle the odd job now and then will find a dependable companion in the 306. The GTI-6 is even increasing in value thanks to its rarity and cult status. Ideally, choose a phase 2 model from 1997 onwards, inspect the car thoroughly before buying and set aside a budget for preventive maintenance. In return you will enjoy years of pleasure from this characterful French classic.