Our family has a 1985 Peugeot 505 wagon in Australia and over the past 4 years not a lot has gone wrong with it. I think it's a great car, comfortable, economical and safe. Our car overheats sometimes, but is overall a good car.
I wrote the original review in 2002. The 1984 505 GL wagon is still on the road in 2009 (and almost certainly will be on the road in 2010) with its second owner. I was so impressed with my 1982 505 sedan, and the aforementioned 84 wagon, that I have purchased a number of 505s since. In the current fleet are:
1986 XN6 5 speed GL wagon - my designated "Winter Warrior" with snow tires on all four corners. It goes where some Jeeps fear to tread. About 150K miles on it.
1986 Turbo GLS 5 speed sedan - a helluva fun summer car. 140K miles.
1986 Turbo Wagon (auto) - a lovely touring car - OK around town, but really in its element on a long cruise. 200K miles
1987 Turbo S 5 speed sedan - ditto above. This one saved my life and that of my wife when we got driven off the road by a huge semi-trailer truck. Decided to repair, rather than scrap the car; it's much cheaper than psychiatry and a hell of a lot more practical. 160K miles.
1987 V6 auto STI sedan. A lovely car for the city and for the open road. 145K miles.
Peugeot really broke the mould with the 505. Superb ergonomics - which one appreciates more with each passing year, as there are no blind spots - an extremely rare quality with today's cars. I have looked for a suitable replacement for the 505 for the last five years and have found nothing, which is why I hang on to my current fleet and am always on the lookout for additional 505s - either as daily drivers or as parts cars.