How Much Does a Toyota Corolla Really Cost?

How Much Does a Toyota Corolla Really Cost?

You’ve decided that the Toyota Corolla is the vehicle for you and you are now wondering how much a Toyota Corolla costs. As a fan of this compact, reliable car we have researched new car sticker prices to determine what influences the cost of the Corolla sedan.

The cost of a Toyota Corolla begins with the Manufacturer's Suggested Retail Price (MSRP). Toyota’s 2020 Corolla sedan base model L has a MSRP of $19,600.  Depending on the trim package you choose, Corolla sedan models LE, Hybrid, SE, XLE, and XSE range in MSRP from $20,050 to $25,550.  The MSRP will not be your “on the road” final cost. The final cost will also include premium trim options, destination fee, dealer’s cost, state taxes, and manufacturer incentives.

You might be as pleasantly surprised as I was to learn the affordable MSRP of the 2020 Toyota Corolla sedan. Even with additional perks and fees added to the final “on the road” cost, a low depreciation rate for the Corolla really does add up.

Toyota Corolla Trim Packages

All Toyota Corolla compact, 4-door sedans come standard with:

  • Safety Sense 2.0 Driver Assistance Package
  • 4.2-inch Digital Instrument Display
  • Power windows & Power Locks
  • Automatic Climate Control (except base L model)
  • Six-Speaker Audio System
  • 1 or 2 USB Ports
  • Infotainment System; 8-inch Touchscreen (7-inch touchscreen for base L model), Apple CarPlay, Amazon Alexa, WiFi Hot Spot, Bluetooth, Voice Recognition
  • Premium Cloth Upholstery
  • LED Headlights & Taillights

Premium features and upgraded options available on Corolla trim packages present modest cost increases for personalized comfort. Here is a breakdown of the Corolla sedan trim packages and the MSRP for each.

Base L - MSRP $19,600

The base model L has all the Corolla sedan’s standard features with the added comfort of a manual, 6-way adjustable driver’s seat.

LE - MSRP $20,050

Little luxuries standard on the LE model include keyless entry and heated exterior mirrors. Choose the LE Premium Package, for an additional $2,000, to include proximity keyless entry, push button start, blind spot monitoring, alloy wheels, and moonroof.

XLE - MSRP $24,050

The XLE model’s standard features include proximity keyless entry, push button start, blind spot monitoring, and moonroof. Additional comforts such as heated front seats, 8-way power adjustable driver’s seat, SofTex leatherette upholstery, HD radio, and satellite radio add to this sedan’s higher starting MSRP.

Sport SE - MSRP $22,050

Corolla’s Sport model SE comes standard with contoured front sport seats, SofTex leatherette upholstery, 18-inch wheels, and rear spoiler. For an additional $700, put yourself in control with an optional manual transmission.

Sport XSE - MSRP $25,550

Take all the sportiness of the SE model, with the added safety feature of blind spot monitoring, and you will have chosen the Corolla XSE.

Trim Package Upgrades

If the trim package was not enough, the Corolla sedan offers options to upgrade the LE, SE, XLE, and XSE. Add an optional navigation system to the standard infotainment system. Amplify your sound with a premium JBL 9-speaker audio system. Adjust the interior mood with ambient lighting. Stay charged with wireless cell phone charging. As you can see, your final cost largely depends on the car’s features.

What is a Destination Fee?

A destination fee is a non-negotiable, fixed fee that covers the cost to transport a new car from the manufacturer to the dealership. The dealership pays this fee to the vehicle’s manufacturer, and in turn passes this fee along to you. Destination fees do not vary by region. The Toyota Corolla sedan has a $930 destination fee.

How Can I Estimate My State’s Sales Tax For a New Car?

Every state imposes a sales tax on new and used cars. The national average of state sales tax in the U.S. is 5.75%. However, you should also be aware that local county, city, or school district taxes can increase your total sales tax. Throughout the U.S., sales tax on cars ranges from 3% to 10%.

Ask your dealer if the state sales tax will be determined before or after any manufacturer’s incentives. You can expect to pay a higher sales tax if it is determined by the cost of the vehicle before the incentive.

What are Manufacturer Incentives?

Manufacturers offer incentives to new car buyers as an attempt to stimulate sales. Incentives or rebates affect the cost of your new Corolla by reducing the net price. Manufacturer incentives are typically offered as low-interest financing options or cash back rebates that can be put toward the down payment of the car.

Is the Dealer’s Cost the Same as the MSRP?

There will always be some, seemingly hidden costs on your new car’s invoice to account for the dealer’s cost of the vehicle. For instance, the dealer holdback is about 2% to 3% of the car’s MSRP. A holdback is paid back to the dealer by the manufacturer. Dealer holdbacks ensure that the dealer can make some profit on the sale. These fees are rarely negotiable.

Manufacturers provide dealer incentives to reduce the dealer’s cost of the vehicle. Dealer incentives are typically offered regionally when a manufacturer wants to hit a sales target for a specific vehicle model. Dealers do not usually pass along these incentives to buyers but, it helps to be aware these incentives exist. You might find a better price for your Corolla sedan in a different region that is not offering dealer incentives.

What 's New in the 2020 Toyota Corolla

New for 2020, Corolla models L, LE, and XLE have an upgraded engine packing 139 horsepower into an 1.8-liter 4-cylinder paired with a continuously variable transmission (CVT). Sport models SE and XSE pack 169 horsepower into a 2.0-liter 4-cylinder engine paired with a CVT or optional six-speed manual transmission.

Toyota’s first ever Corolla Hybrid is now available at MSRP of $23,100. The Hybrid, with LE trim package, uses Corolla’s signature 1.8-liter 4-cylinder engine plus 53kW electric motor. The Corolla Hybrid LE gets the best fuel efficiency of any model with an EPA city/highway rating of 53/52 mpg.

What is the Depreciation Value for the Corolla Sedan?

A vehicle’s depreciation value considers the overall cost to own by factoring maintenance, price decline, available inventory, and number of reliable years the car has remaining. Toyota’s Corolla sedan depreciates very little over time. According to USEDFIRST.com, the 2018 Toyota Corolla sedan has the best depreciation value requiring low maintenance and having 92% of reliable years remaining.

How much does a 2019 Corolla cost?

I recommend using Kelley Blue Book to determine new and used Toyota Corolla sedan pricing. Kelley Blue Book enables you to select your Corolla sedan’s year, choose a trim package, add options, and generate a price based on your state or region. Using Kelley Blue Book, a fair purchase price for a new 2019 Corolla LE starts at $19,220.

How much does a 2018 Corolla cost?

Using Kelley Blue Book, a fair purchase price for a new 2018 Corolla LE starts at $20,129.

How much does a 2017 Corolla cost?

Using Kelly Blue Book for used car prices affords you a few additional options. You can obtain a fair purchase price for a certified pre-owned vehicle from a dealer, or for a used vehicle from a private seller. A fair purchase price for a certified pre-owned 2017 Corolla LE from a dealer starts at $14,000.

As you can see there are many invoice items to be aware of when determining the cost of a Toyota Corolla sedan. Now, you can determine what is the best price for the best trim options for your ideal Corolla.

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