1988 Peugeot 205 Rallye review: Retro Road Test

This is a forgotten hot hatchback, that’s for sure. But you can be forgiven for forgetting about the Peugeot 205 Rallye. Here in the UK, it was little more than a spiced-up 1.4-litre single-carb 205 XS, producing not a great deal of power and providing nowhere near the excitement of a GTI.

However, the car in this Retro Road Test is the real McCoy. It’s a European-spec, left-hand-drive version of the Rallye, boasting a kerb weight of just 794kg: a whole 100 kilos lighter than a GTI. And it has a decent amount of power, too…

What are its rivals?

If quirky hot hatches are your thing, there is no shortage of cars you could consider. It has a different character, but if you fancy a Rallye, you should definitely look at the more commonplace Peugeot 205 GTI.

There’s also the newer – and again, more common – Peugeot 106 Rallye, along with the fabulous Renault Clio Williams. The Citroen AX GT is a plucky little pocket rocket, while the Suzuki Swift Sport also follows the Rallye’s simple ethos.

What engine does it use?

In European guise, the 205 Rallye dumped the lacklustre 1.4-litre engine in favour of a revvy twin-carb 1.3 producing 103hp – just 2hp short of the GTI when it was launched in 1984.

Intended to compete in the sub-1300cc rallying class, the Rallye was a stripped-out homologation special.

What’s it like to drive?

At first, honestly, a little disappointing. It’s an old French hatchback, and feels it. The brakes take some prodding, the steering is heavy and the interior, red mats aside, feels relatively normal. And old. This is not a car for drivers seeking instant gratification.

But as the Rallye starts to warm up, and you get into the experience, it gradually becomes more rewarding. It’s suited to tight, winding B-roads (and out of its element on larger roads), responding well to enthusiastic front-drive driving. So, on the brakes in a straight line before a bend, powering through and – whatever you do – don’t lift off. Not that it’s as snappy as the GTI.

The analogue steering is infinitely more communicative than the electrical systems fitted to today’s hot hatches. The performance, meanwhile, would be shown up by most modern superminis. But it’s fun to work it hard, chasing the redline and staying below speed limits.

Reliability and running costs

It’s an ageing French car, so don’t expect it to be painless, although it’s relatively simple. Parts can be difficult to source – be prepared to join Peugeot clubs (there isn’t a dedicated 205 Rallye club in the UK, but there are plenty of more general ones) and fire up Google Translate to ship components from abroad.

Could I drive it every day?

Cut-and-paste answer to almost every Retro Road Test we’ve done: you could, but you probably shouldn’t.

The 205 Rallye is a rare car, especially in European-spec, and it’ll soon start to show its age if used as a daily-driver. Plus, the novelty of driving a left-hand-drive hatchback without a radio and little in the way of creature comforts may soon wear thin.

How much should I pay?

Finding one in the UK is difficult, so providing a solid valuation is tricky. If you can find a cared-for original example, the limit is essentially the maximum you feel comfortable paying for an old Peugeot hatchback.

We’d probably budget around £15,000 for a nice one, or £20,000 for a minter. But bear in mind the direction in which GTI prices have gone. A Rallye could be a sound investment.

What should I look out for?

Signs of abuse and crash damage are the main concerns. Lift the bonnet: does all the paintwork look original? Are there any ripples or signs of repair?

Other than that, buy with your head rather than your heart. If you’ve been waiting a while for one to be advertised, it’s easy to dismiss minor faults – but bear in mind that even simple parts could be nigh-on impossible to find.

Should I buy one?

In truth, it makes more sense to go out and buy a 205 GTI. They’ve got more of a following – so could be a wiser investment – while support through clubs and online forums is more readily available. It’s easy to find a nice one, too, as long as you’re prepared to pay good money.

If the right 205 Rallye comes up, however, grab it, spend as much as you can keeping it tidy and original, and enjoy driving one of the best forgotten hot hatches that never officially made it to the UK.

Pub fact

Chris Harris of Top Gear fame is the proud owner of a 205 Rallye. He described it as “every bit as special as an RS Porsche”, despite his slightly example showing more than 300,000 miles on the clock and having been used as a tarmac rally car.

Thanks to Nick Bailey of Elan PR for the use of his lovely Peugeot 205 Rallye.