The 2007 Peugeot 307 range of configurations is currently priced from $2,555.
Our most recent review of the 2007 Peugeot 307 resulted in a score of 6 out of 10 for that particular example.
You can read the full review here.
The 2007 Peugeot 307 carries a braked towing capacity of up to 1175 Kg, but check to ensure this applies to the configuration you're considering.
It certainly wouldn't hurt to change the belt earlier than recommended, but I would be happy to go by Peugeot's recommendation, particularly if you have serviced it as they recommend.
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I doubt you have any claim against Peugeot, but you might have a claim against the people you bought it from if they sold it to you with some form of warranty, which I doubt. You got it cheap in the first place because it was in the flood. Cop it sweet.
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The Peugeot 307 2007 prices range from $1,600 for the basic trim level Hatchback Xs 1.6 to $6,600 for the top of the range Convertible Cc Sport.