Peugeot's seem to be the pricey for you get compared to other Frenchies and don't they only go upto 2000 plate? What about a Xsara VTS? Ok so its a coupe not a hatch but for about 800-1500 you get a newer car and its still the 2.0 167bhp lump. Handling probably isn't quite as good as the 306 though. Also think the 306 is 6 gears whereas VTS is 5.