NOT so long ago, a hot hatchback was the car to have. The Golf GTi, Peugeot 205 GTi and Ford's good old XR3i have all been the cause of much merriment.

Their demise, due to car crime and high insurance premiums, is well documented and the death knell sounded for the whole class when Ford stopped selling the Escort XR3i - the most popular of them all. But there's been a steady revival of the sporting hatchback in recent years.

Manufacturers were at first shy of openly declaring a car's potential by putting a GTi badge on the back, but in 1996 the new Peugeot 306 GTI-6 provided the proof needed that the hot hatch had returned. And with a reasonable supply of used examples available, the 306 is still considered one of the all-time best examples of the breed.

For many, the old Peugeot 205 GTi 1.6 was the best and any Peugeot carrying a GTi badge has a reputation to uphold. The 306 offers 16-valves, a six-speed gearbox and passive rear-wheel steer. It's often rated as a more refined, but very worthy (albeit larger) successor to the 205's crown.

Perhaps VW's Golf VR6 has a greater image, but the 306 would definitely be the driver's choice. Currently, French flair can be bought for less than an equivalent Golf.

The 306's multi-valve engine is smooth, free-revving and turns out an impressive 167bhp at 6,500rpm. That's good enough for 137mph and 0-60mph in 8.5 seconds. A six-speed gearbox sounded a bit of a gimmick back when the car was launched, but it provides the icing on the cake. Top gear is no higher than a normal fifth ratio (it pulls 3,250rpm at 70mph) and the others are closely stacked, ensuring the engine is always ready for action.

On the subject of performance, as a victim of its own success there's always the odd 306 with a chequered past. And with anything that invites enjoyment, it's wise to check the condition of the mechanicals for signs of abuse. Think twice if it's been modified, too - there's nothing wrong with the standard item.

Peugeot's 306 set new standards back in 1993 for handling and the GTi took it to another level. Gentle understeer gives way to slight oversteer as the rear-wheel steering kicks in.

You can feel the nose tucking in as the rear corrects the chosen line. Its power steering is one of the best. Although a little heavy at parking speeds, it will reward your efforts with a light and balanced touch at speed.

The ride is supple enough to provide almost saloon car comfort and this helps to generate a feeling of fluid, smooth cornering. There are no severe jolts to break traction as you put the power down coming out of a bend an important trait on a rev-happy front wheel-drive hatch. Brakes are first class and ABS was standard from launch.

Styling of the 306 GTi-6 is quite restrained. Apart from alloy wheels, only discreet sill extensions and a small spoiler above the tailgate mark the Pug out as something special. Inside, the design is also standard 306 and a bit sombre, although there are sports seats, a leather-clad steering wheel and gear-knob.

Despite a comprehensive list of equipment, including electric windows and mirrors, sun-roof, remote locking, immobiliser and air-conditioning, make sure all the bells and whistles work. While usually reliable, it's not uncommon for glitches to surface and spoil the fun.

And Peugeots can suffer more than the odd squeak and rattle from the trim - it's not as tough as it looks. Peugeot has always exhibited a flair for performance tuning, but build quality has never been the French firm's strongest attribute so don't be afraid to poke and prod the interior. That said, with one major and one minor facelift under its belt, the 306 did improve in the latter part of its life.

Don't be put off by the less than Golf-like build quality. The 306 is an impressive driving machine. An equivalent Golf will be outclassed in the handling department and lacks the communicative controls of the Peugeot. The 306 may not be as durable as the VW, but neither do you pay the cost premium associated with the German hot hatch. All of which makes the GTI-6 something of a performance bargain.

l Verdict: Top choice for the enthusiastic driver.

FACT FILE...

Model: Peugeot 306 GTi-6, pay from £3,655 (1997 P/R).

Engine: four-cylinder petrol engine of 1998cc producing 167bhp at 6,500rpm, and 145lb ft at 5,500rpm.

Transmission: front-wheel drive through 6-speed manual gearbox.

Brakes: discs front and rear, with ABS.

Performance: maximum speed 137mph; 0-60mph 8.5 seconds.

Economy: 25.2mpg on the urban cycle; 44.1mpg at a constant 56mph; 35.3mpg at a constant 75mph. Test average 32.2mpg. Fuel capacity 60 litres (13.2 gallons).