THE latest report on our long-term Peugeot is a mixed one.

I’ll start with the good stuff. After time to cover a few hundred miles and get used to it, I’m rather impressed with the way the 207 drives.

Although it packs only 90bhp, the 1.6-litre HDi engine is a decent one and makes the 207 deceptively nippy, which is reassuring getting on to a dual carriageway when your mirrors are filled with a lorry.

The handling is also pretty good. On my way to the office each morning I have to negotiate 20 miles of country lanes and the Peugeot copes well, zipping around bends with composure.

There’s plenty of feel through the seat and although I’d prefer a shade more feel through the steering wheel it’s still communicative enough to let you know what’s going on. However, there have been several problems which have marred the experience, especially so early on in our ownership.

After whizzing down the A1 to London, I pulled in at my destination only to notice that the lower valance on the front bumper had come unclipped and dragged along the road for God-knows how long. As a result it had been whittled down to half its original size and needed replacing.

So too did the plastic top of the gear stick, which after only a few thousand miles of motoring came off in my hand. Additionally, the storage space under the stereo popped out of the dash and refused to go back in properly.

The car was booked in at our local dealer, Marshall of Peterborough. It was dropped off early one weekday morning and spent the entire day there before we were told it was ready to be picked up. But on arrival I was kept waiting for 20 minutes or so, as no-one could find the keys.

Eventually they were located, and I was informed that only the gearstick had been fixed, and the other two items would have to be ordered in.

When I asked when they would be ready, the ever-so-helpful chap behind the desk said he didn’t know, as he’d already logged off his computer because he was going home. Great – thanks a lot.

I was told someone would call the following week when the parts came in, but the call actually came the week after that. The car was duly dropped off again and the parts replaced, although the trim under the stereo still doesn’t fit particularly well.

Price: £11,995 (£12,345 as tested)
Mileage: 8,538
CO2 emissions (g/km): 120
Company car tax bill (2006): 22% tax-payer: £40 per month
Insurance group: 5
Combined mpg: 62.7
Test mpg: 47.1
CAP Monitor RV: £4,075/34%
Contract hire rate: £273
Expenditure to date: Nil
Figures based on three years/60,000 miles