I ALWAYS enjoy a chance to get behind the wheel of our Peugeot 407, but the latest journey was collecting it from my local dealer after a faulty ‘depollution system’ was replaced under warranty.

As reported last month, the fault was discovered shortly after the car had a central locking problem fixed – the front passenger door could be opened after the car was locked, setting off the alarm, but perhaps allowing enough time for a thief to snatch items carelessly left in view.

Then, the on-board computer alerted us with the message ‘de-pollution system faulty’ accompanied by the engine malfunction warning light. Despite scouring the driver’s manual, I couldn’t find anything relating to the ‘de-pollution system’ and assumed something might have been amiss with the catalytic converter.

Our dealer, Hindmarch in Stamford, advised us that we could continue to drive the car while a part was ordered and the work was carried out one day. We declined the offer of a courtesy car, but it was good to know one would have been available, and since then the car has been running fine once again.

Over the last few months, the 407 has become a more familiar sight on the roads, and according to the latest figures, more than 5,000 diesel models have been registered since the car was launched in the summer.

Our test model is an SE, and is reasonably well equipped for the money. You might find an equivalent Vauxhall Vectra has a few items that are missing from the 407, but the Peugeot probably has a few things such as electric rear windows that are restricted to the options list on rival cars.

It is a delight to drive and works well with the 136bhp diesel engine, which is the classic iron fist in a velvet glove in the way it delivers its power.

Strangely for the Peugeot, higher-specification cars are likely to hold their value better than less expensive ones.

Our SE is expected to retain 28% of its value over three years/60,000 miles, according to CAP Monitor, a percentage point ahead of the S, and the same as for the SV. However, the SE with the optional luxury pack and the Executive model are quoted at 29%. The SE is probably a safer investment than the Executive, but the luxury pack would be worth considering, as it seems to benefit both the driver and the owner.

FACT FILE
Model: Peugeot 407 2.0 HDi SE
Price (OTR): £17,450
Mileage: 8,763
CO2 emissions (g/km): 155
Company car tax bill (2004/5) 22% tax-payer: £54 per month
Insurance group: 10
Combined mpg: 47.8
Test mpg: 42.9
CAP Monitor residual value: £4,850/28%
HSBC contract hire rate: £378 per month
Expenditure to date: Nil
Figures based on three years/60,000 miles