It hasn't been around long and in that time it hasn't exactly set the world on fire, but Peugeot's latest hot-hatch, the tiny 208 GTi is now hitting the used-car market. After a fashion.

The truth is, the bulk of them for sale right now are dealer demonstrators, but they're still changing hands for second-hand prices.

What's going on?

Really, it's nothing new; franchised dealers have been registering their own demonstrator models and then selling them with very few miles on board ever since dealerships were invented.

Throw in the fact that the 208 GTi is still a relatively new car and not a fleet model by any means, and you can see how private buyers aren't yet ready to trade-in en masse on the latest must-have hatchback.

Actually, the 208 GTi never made it to the must-have list, but that doesn't mean it isn't a good car, because it's a proper hot hatch, albeit a tiny one.

But don't be fooled by the external dimensions, this is one seriously quick little car and coming from the Peugeot stable, it's made by the same company that took the hot-hatch concept and ran with it way back in the 1980s.

In fact, that link with Peugeot's hot-hatch past was one of the main things that attracted buyers, but scratch deeper and there was more to like.

Because the GTi was a relative lightweight and its turbocharged 1.6-litre engine packed a mighty wallop, it was seriously quick.

It felt feisty, too, and urged you on on the right piece of road.

A six-speed manual gearbox was the only one offered and, unlike the Renault Clio Sport that went head-to-head with the Peugeot, there was no trendy paddle-shift option.

The suspension was supple enough to be comfortable yet really allowed you to throw the 208 around. Many have been used as track-day cars, so make sure there's no mechanical hang-over from that.

Watch for super-soft track-day tyres and alloy rims that bear the scars of a hundred tyre changes.

A car with tow-hooks and a fire extinguisher might not have ever seen track duty, but then again, it just might have.

The interior will be the biggest mental hurdle for most people and it places the tiny little steering wheel down low and the instruments way up high.

So instead of looking through the spokes of the wheel to see the gauges, you look right over the top of the wheel's rim.

It's a bit strange at first but it does seem to work okay.

Bear in mind the GTi version is a three-door body, too, so rear seat access is limited.

Without a shadow of a doubt, the biggest potential source of grief will come from under that stumpy little bonnet, specifically the top of the engine.

This unit was shared between the 208, the new Mini and the Citroen DS3 although Peugeot did fiddle with the design a little with a twin-scroll turbocharger and different plumbing.

That said, it still made the same 147kW of power, so it wasn't radically different inside.

And it's inside where the gremlins live.

In this case, it's the engine's timing chain that can give trouble.

To be fair, it hasn't been a widespread occurrence here, but there have been cases of the timing chain actually jumping a tooth or two, throwing the engine into limp-home mode and potentially damaging delicate internal bit and pieces.

Even if no damage occurs, it still requires a new timing chain and guides to be fitted and that's not a small job on these engines.

Opinions are divided on why this happens to the turbo motor, but some have even suggested a batch of chains of wrong length were delivered to the engine factory.

It's also worth noting that the engineers have been working on this problem and the later batches of engines don't seem to have the problem.

We'd still be making a close check, though, and that includes starting the engine from dead cold, first thing in the morning.

If the chain is loose or worn, you'll hear an engine that sounds almost like a diesel in the way it clatters and rattles.

If that's the case, we'd be walking away. And be wary of a seller who has already warmed the engine before you arrive.

Don't confuse this death-rattle with the ticking sound made by the fuel injectors which is quite normal for this engine and doesn't pose a problem at all.

The good news, of course, that the 208GTi should still be within the factory warranty period and any ex-demonstrator car will have been serviced religiously.

That, of course, means that any privately owned example you find in the classifieds needs to be checked for a complete service record as that's the only way Peugeot will be bound to honour that warranty.

And let's face it, you just wouldn't want to buy a car this new that's already been neglected by its first owner.

A small number of 208s (and the bigger 2008) were recalled to check that the bolts holding the front suspension in place were tightened to the correct torque value.

A Peugeot dealer will know if your car was affected and whether it's been attended to.

Nuts and bolts

Engine: 1.6-litre, four-cylinder, turbocharged petrol

Transmissions: Six-speed manual

Fuel economy (combined): 5.9 litres per 100km

Safety rating (courtesy of www.howsafeisyourcar.com.au): Not rated (but 208 five-door hatch rates 5 stars)

Our rating: 3.5 stars

Likes:

·         Seriously perky engine.

·         Slick six-speed gearbox.

·         Great handling and sharp steering.

·         If you like hot-hatches, you'll love this car.

Dislikes:

·         Pretty small inside, including the rear seat.

·         Expensive on a dollar-per-kilo basis.

·         Interior layout is odd for odd's sake.

·         Doesn't have the best reputation in the trade.

Competitors:

·         Renault Clio Sport – Cracking little hot-hatch that offers a more high-tech solution with its DSG gearbox and paddle-shifters. Renault recently extended its warranty for greater peace of mind. And it's a five-door. 4 stars

·         Volkswagen Polo GTi – Pricey but very capable and classy in every way, especially the interior presentation. DSG woes still haunt VWs fitted with the seven-speed version but it's a solid car in every other way. 4 stars

·         Ford Fiesta ST – Makes you wonder how they crammed so much fun into such a small package. Small dimensions contain huge performance in every regard. Busy interior. 4.5 stars

What to pay (courtesy of Glass's Guide):

Model   Year       New      Now

GTi         2013       $29,990  $17,600

GTi         2014       $29,990  $20,800

GTi         2015       $30,990  $22,200