I have had nothing go wrong with the car although I have only had it just over a month.
Do not buy this car if you expect to go round corners fast. After my 205 XS this car just seems to make pathetic attempts to corner. Go into a corner at anything over 30mph at your be in the passengers lap or hitting the window. I have p700z's and yet it still manages to slide round corners like its on ice.
Performance (straight line) is great I manage to keep up with my old 205 XS (1.4 twin choke CARB) and in 5th I out accelerate it.
That's strange because the 205 shares the same suspension set up at the gti, or so I have been told, uprated from standard with mcpherson struts. so it should have handled well, sounds like your rear axle was wrecked! jon.