Peugeot had a great history with station wagon vehicles, and its predecessor, the 504, was praised for its ride qualities and reliability.
The French carmaker introduced the 505 in 1979 as a replacement for the aging 504, which remained in production in several countries until 1983. But in 1982, Peugeot introduced a station wagon version for the 505, which had to match, or exceed, the customers' expectations. And it did.
Larger, more refined, and more powerful, the 505 was a big success for the French carmaker, although not as big as its predecessor. In the station wagon shape, it featured an extended rear overhang to make room for more loading areas and passengers as well. The car shared the same front fascia as the sedan, with its angry-looking headlights and black plastic grille.
The interior featured up to eight seats, face-forwarding, one more than on the 504 station wagon. It was a cheaper, and sometimes better, alternative to the new minivan market. At the front, the carmaker installed a modern-looking dashboard, with a raised area in front of the driver for the instrument cluster, but with rounded corners and edges. On the center stack, Peugeot installed the vents on the upper side, followed by the climate control sliders and the stereo. In the back, the 505 station wagon featured folding seats for the middle row and an additional flat-folding bench in the trunk. The total loading volume reached 1,940 liters (68.5 cu-ft) of space, with only the front seats kept in running order.
The carmaker offered the 505 with a wide choice of engines and transmission. A French subcontractor, Dangel, built a successful range of 4x4 models with an increased ground clearance and locking rear differential.