Octane’s staff writer Matthew Hayward knows how badly I’ve been missing my old Peugeot 205GTI, which I sold a few months back simply through lack of space and time. So when he offered me the chance to borrow his own 205GTI, I of course jumped at the chance.

Thing is, this is a 205GTI with a difference, because it’s been fitted with the 160bhp, 1905cc, 16-valve Mi16 engine from the 405 – a popular conversion for the 205. I’d never driven one before and had deliberately avoided Mi16 conversions when I was looking for a 205, thinking a modified car would be too much trouble.

Matthew’s car has been virtually troublefree in the six months he’s owned it, and he raves about its performance. My 30-odd mile drive home is heavy with roundabouts, fast stretches of dual carriageway and undulating A-road, so I was looking forward to seeing how Matthew’s 205 compared with my old car.

First impressions were good. Just pulling away shows up a massive increase in torque over the buzzy 1.6. Down the road and the little car just keeps accelerating, with no obvious let up in power. Lovely! This is a lot quicker than a standard 1.6!

By the time I was five miles down the road I’d decided that it would be worth sacrificing originality for a good Mi16 conversion. Where the 1.6 feels rapid until a modern hatchback pulls away alongside it, the Mi16 is just rapid, full stop. The standard 205 1.9 fits in between the two in terms of useability, but the Mi16 is a sweeter engine than the 1.9.

Matthew’s car was originally a 1.6 and still has the original 14in diameter wheels. Sticking it on the 1.9’s 15in wheels would raise the gearing, which the Mi16 engine could easily cope with, and make the car feel less frantic at 80mph-plus.

It also suffers the usual 205 heavy steering, though because it’s only at parking speeds it’s easy to put up with. Some GTIs came with power steering, and feelings are mixed on whether that’s a good thing. Arch 205 supporter and Octane road tester John Simister chooses a 1.9 with power steering as the best spec, for example. I’m beginning to agree that assistance would be useful.

As for Matthew’s car, I was smitten. It retains the 205 virtue of superb handling but adds a previously unknown level of performance, which makes it just about perfect as far as I can see. It needs a bit of tidying but what a great machine – especially considering he paid just £1000 for it!