These cars do need the cambelt changing. I think the interval is eight years or 80,000 miles - whichever comes sooner. If it snaps then there's a high chance the engine will be damaged. The belt can perish through wear (mileage) or time. You'll definitely need to replace the tensioners. It's also a good idea to replace the water pump at the same time. And you could also do the auxiliary belt - all are good 'while you're there jobs'. I'm not sure what the going rate is from a decent non-main dealer garage, but I imagine it'll be around £400. This is obviously a decent chunk of the car's current market value so you need to ask the question of whether or not you think it's worth it. Personally, I'd say yes - not only because it's still cheaper than fixing a broken engine or possibly buying a replacement car, but also because this is an SRi Turbo - a modern classic waiting in the wings. Why not have a chat with the Peugeot owners' club (www.406oc.co.uk/) to get an idea of repair costs and the car's market value?