Peugeot 107 city car
Price: £8,220 - £10,970
- Cheap to run
- Reliable Toyota engine
- Easy to drive around town
- Outclassed by newer rivals
- Poor equipment levels
- Struggles on the motorway
"The Peugeot 107 is a basic and cheap-to-run city car that is a popular choice for a first car."
It's competitively priced, very economical, free to tax and cheap to insure. Resale values are pretty strong, too, because its proved to be popular on the second-hand market to date. It's only available with one engine – a three-cylinder 1.0-litre petrol with 67bhp – but it's nippy enough for town driving. And there are a choice of four specification levels – Access, Active, Allure and Envy – which should ensure you can pick a car with the right level of equipment for you.
The trouble with the 107 is that it comes with some compromises. It's not very practical, equipment levels are extremely spartan on entry-level cars, it struggles to cope with A-road and motorway driving, and it has a poor three-star safety rating. Even worse, a range of rivals have launched in recent years that don’t suffer from these problems but are just as cheap to buy and run.
MPG, running costs & CO2
Very good fuel economy and models with a manual gearbox are free to tax
Low running costs are the 107's main strength. Peugeot doesn’t sell it with a diesel option but the perky little 1.0-litre Toyota engine combined with the car's tiny, lightweight dimensions make it very economical and very efficient anyway.
It will do 65.6mpg and 99g/km CO2 – making it free to tax. If you go for an automatic gearbox the figures change to 62.7mpg and 104g/km CO2, putting it in tax band B, which is free in the first year and £20 per year thereafter. That's still very good, but we’d recommend the manual version anyway, simply because the automatic gearbox isn’t particularly good.
Peugeot also offer a 'Just Add Fuel' deal, which combines three years’ finance payments, servicing, warranty, tax, insurance and roadside assistance into one fixed monthly payment – great for keeping costs under control.
Interior & comfort
Rear seats are cramped and it’s too noisy at motorway speeds
The Peugeot 107 is pretty comfortable around town thanks to a soft suspension setup that eases you gently over all but the worst bumps and potholes. But it's a real chore to drive on A-roads and motorways, because the 1.0-litre engine can’t quite cope with higher speeds and gets very noisy as a result.
The issue is made worse by the fact that the interior isn’t very well insulated, so you get a lot of wind and road noise, too. You also feel very vulnerable next to lorries and SUVs due to the cars size. There isn’t much head or legroom in the rear either, so it's really only suitable for children – adults will feel the squeeze.
Practicality & boot space
Interior space is tight and boot is much smaller than rivals
The 107 really isn’t a very practical car. The boot has space for just 139 litres of luggage – which is smaller than that available on rivals like the Fiat 500 and MINI, even though they both put style way ahead of practicality. The 500 has a 185-litre boot and the MINI has 160 litres of capacity – which is set to increase with a new model soon.
Space inside is also pretty tight. The rear seats are really only useable by children and are a pain to access in three-door cars. We’d recommend going for the more expensive five-door body style, especially if you need to get a child seat in the back.
Reliability & safety
The 107 has a poor safety score, but Toyota engine should prove reliable
Perhaps the 107's biggest weakness is the fact it has a three-star Euro NCAP safety rating. Like the Citroen C1 and Toyota Aygo, it was downgraded from a four-star rating in 2012 due to Euro NCAP making its testing criteria more strict. Too many rival city cars have a maximum five-star rating for this to be acceptable.
Peugeot hasn’t performed well in recent customer satisfaction surveys, either. It came 31st out of 32 in the 2013 Driver Power manufacturer rankings, with only city car maker Smart between Peugeot and last place. This was a dreadful result for a major car brand like Peugeot.
However, the 107 should prove to be very reliable – it was co-developed with Toyota, which has a great reputation for dependability, and uses a Toyota engine and many other components from the Japanese manufacturer.
Engines, drive & performance
Nippy and fun around town but a drag on A-roads and motorways
The 107 is great around town. The 67bhp 1.0-litre engine has enough power to make it great at nipping through city traffic and the steering is light and visibility is good, too, which makes manoeuvring and squeezing into tight parking spaces very simple.
Take the 107 out on the open road, though, and you’ll find it struggles. The engine doesn’t have enough power to be able to cope well with motorway speeds, and gets very noisy. Wind and road noise is bad, too, as the interior isn’t very well insulated. And because the engine has to work overtime just to maintain a speed over 60mph, you’ll find overtaking takes an age.
You can’t adjust the position of the steering wheel, either, which makes it hard to get a good driving position. What's more, you feel very vulnerable next to lorries and SUVs from inside the little 107.
Price, value for money & options
Resale values are decent but more accomplished rivals make 107 look expensive
The 107 is reasonably cheap to buy, but thanks to an influx of competitively priced rivals over the past few years, it doesn't really look like good value any more. Cars like the Hyundai i10, Skoda Citigo, Kia Picanto and Volkswagen up! all have similar prices (or lower) to the 107, but they are better built, more practical, better to drive and come with more equipment – and the i10 and Picanto have five and seven-year warranties respectively, compared to the 107's standard three-year guarantee. You should definitely haggle hard for a sizeable discount on the 107 as a result.
Fortunately, the 107 does have pretty decent resale values due to its enduring popularity as a first car. However, with the recent crop of new and more desirable city cars entering the market in the last few years, that may not be the case for much longer.
What the others say
"Motorway journeys will be incredibly noisy, with lots of wind and road noise making its way into the cabin. The supple ride means you'll at least be comfortable though."
Last updated: 7 Mar 2014