Description: Compact Sedan
Base MSRP Range: $14,005 - $17,780
Invoice Price Range: $12,954 - $16,089
Where built: Canada

Toyota's compact sedan comes together in Corolla and at Toyota's Canadian factory in Ontario. Exterior styling appears shapely and contemporary but also muscular.

For action, a 1.8-liter in-line-four engine hits 126 hp with Corolla's primary trims of entry-level CE, upscale S and deluxe LE. Transmissions include the standard five-speed manual or optional four-speed automatic.

Sporty Corolla XRS packs a spoiler, body-colored grille, blacked-out headlight extensions and 16-inch alloy wheels. It rides low on a sport-tuned suspension dropped by half an inch, while the cabin shows sport seats, silver-colored instrument plates with Optitron meters and a leather shifter knob. The XRS makes more power too, from a 1.8-liter four-cylinder with Toyota's variable valve timing, labeled VVTL-i for variable valve timing and lift with intelligence. The plant nets 164 hp in 2006 configuration with a six-speed manual stick.