-Central locking problem: A common central locking problem on the Peugeot 206, is 'bouncing'. This is when you either lock or unlock the car using the central locking, and it immediately re-opens or re-locks. This problem is caused by a faulty actuator.
-Loud noise from HDI engine: When you have your HDI engine running, and you hear a very loud metal sort of tapping noise, then this is a problem with the crankshaft pulley.
-Engine misfiring / loss of power: You may have noticed that your engine is misfiring and when you are driving there is a loss of power. This problem is due to a faulty ignition coil pack. You may also have noticed that the engine management warning light, is on the dashboard.
-Engine stalling: It is known on the 206, especially for cars that are either over 2 years old or have done more that 40000 miles, to have problems with random stalling. The usual cause is a faulty potentiometer and faulty stepper motor.
-Water leaking into front footwells: If you have noticed that the carpets in the front footwells are wet from water leaking into the cabin, this is usually due to a blockage in the bulkhead drain. The drain can get blocked up with leaves or other debris, which will need to be removed.
These are only the common problems found in the 206 but depending on the year it was released or the engine it has, specific problems can appear! After fixing it, you don't have any kind of warranty that something else would't go wrong in a short period of time... I understand the fact that some people can't afford a more expensive car, but in this price range you can easily find another compact city car which is more reliable and it's a better value for money. I gave a few tips for buying a city car, check it out if you're interested: http://allaboutdieselz.blogspot.ro/2015/08/diesel-or-petrol-engine-in-city-car.html
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