Sadly this is not the first complaint we've received about the 1.2 PureTech engine in the Peugeot 308. Has the dealer identified the cause of the low compression? I would not expect this to be related to wear and tear, given the age and mileage of the car.

It may be better to get a second opinion from an independent Peugeot specialist (as they may be able to repair the engine at a much lower cost). Alternatively, you could seek legal advice - the Consumer Rights Act gives you the right to take action on a faulty car for up to six years (after the date of purchase) in England and Wales or five years in Scotland.