Parkers overall rating: 3 out of 5 3.0

The two petrol engines (1.6 and 2.0) are fairly peppy, but not refined enough. The 1.6 is the best mix of performance and economy. Diesel models (2.0 with 90 or 110 bhp) are both frugal and fun to drive, these were replaced in 2005 with a pair of 1.6 HDIs in 90 and 110bhp forms, and a 2.0 litre unit with 136bhp. Peugeot's diesel units are excellent and really suit the SW family car concept

The 306 estate was almost as good to drive as the hatch. Sadly, the 307 isn't. Safety now comes first and the additions of airbags, a more rigid body and electronic gizmos has weighed it down. However, it's safe, solid and easy to drive. Although the steering is light, it's not easy to park, because the rear pillars are chunky and restrict visibility.

Suspension copes well with bumps but doesn't roll too much around corners.