I've noticed 207_GTI commenting about the worthiness of Peugeot cars but also about the problems with after sales service. I have to agree with the first conclusion. I'm on my 3rd Peugeot (previously 206-2003 and 206-2006) and making the purchase has always been a happy experience. I have a favorite dealer in the Deira showroom who I've dealt with each time who I get excellent guidance from and who I can trust 100%. On my second purchase in 2006, for example, he found a leak of some sort on the floor of the showroom from the vehicle I had chosen . It was already after my purchase was complete but he went and had the car completely checked and the problem identified. Although it was a relatively minor issue he recommended I take another car of the same model and immediately arranged that. After sales service, however, has often been frustrating.
So far, I have only first impressions to offer on the 207 Active I got, a 2011 model. Compared to my previous 206 it has got great added space in the cabin front, seats are more comfortable--love the adjustable steering--and the steering and ride of the car is just amazing. It feels extremely solid, well-balanced, tight and maneuvers very well. I feel content with a 5-year unlimited mileage warranty, even though there is no free servicing. It seems to be a very well built and designed car for its price point.
That said, my 2006-206 manual (which I still have) is still a good sturdy drive and I can see both cars are quite good and sturdy in their own ways. While only 5 1/2 years old now, my 206 has 250,000 km on it and for about 2 years running I had completely neglected servicing or care on it and practically drove it to the ground. It got some gear damage but I've had that repaired and other fixes here and there (at a Ras Al Khor worksohop) and it is running now as nicely and strongly as ever.
So, I am of a strong mind that Peugeots are good cars. Great to drive and own, even if after sales service is spotty.