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1998 Toyota Tercel Overview, Reviews, Ratings & Specs

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Drew B | January 1, 2026
The 1998 Toyota Tercel, part of the fourth generation (1995-1999), is a subcompact car known for its exceptional dependability and fuel efficiency. Available primarily as a 4-door sedan and a 2-door coupe, key trims included the CE and the DX. While specific pricing varied, it was positioned as an affordable entry-level vehicle. Its popularity stems from Toyota's renowned reputation for reliability and low running costs, making it a practical choice for budget-conscious buyers.
The Good

The 1998 Toyota Tercel excels in reliability and fuel economy, offering peace of mind and significant cost savings. Its no-nonsense design and comfortable ride make it a practical daily driver. Emotionally, it provides a sense of security and simplicity. Practically, it's an economical choice for commuting and everyday transportation.

The Bad

Potential weaknesses of the 1998 Toyota Tercel include modest acceleration due to its small engine, basic interior materials, and limited advanced features. Some owners report occasional issues with the transmission or power steering at higher mileage. Rust can also be a concern in certain climates, particularly around the wheel wells and rocker panels.

1998 Toyota Tercel: Quick Overview

  • Engine Options: The 1998 Toyota Tercel was primarily equipped with a 1.5-liter inline-4 engine.
  • Horsepower: This engine typically produced around 93 horsepower.
  • Fuel Economy: Fuel efficiency was a strong suit, with EPA estimates often around 29-32 MPG in the city and 35-38 MPG on the highway, depending on transmission (manual or automatic).
  • 0-60 Times: Acceleration was not a strong point. 0-60 MPH times were generally in the 11-13 second range, reflecting its focus on economy over performance.
  • Towing Capacity: The Toyota Tercel was not designed for towing, and a towing capacity is not applicable.
  • Trim-Level Features (CE & DX):
    • Standard Features: Both trims generally came with essential amenities such as power steering, intermittent wipers, and a tilt steering wheel. A 4-speaker AM/FM stereo system was common.
    • CE Trim: Often considered the base or slightly more equipped model, it might include features like a tachometer and a slightly more robust interior fabric. Air conditioning was often optional.
    • DX Trim: This trim often added slightly more comfort-oriented features, potentially including power windows and door locks, though these were not always standard and could vary by specific package. Body-colored side mirrors and a passenger-side vanity mirror might also be present.
    • Optional Features: Depending on the specific vehicle and options selected at the time of purchase, features like a sunroof, cruise control, and upgraded stereo systems were available. Anti-lock brakes (ABS) were typically optional, especially on higher trims.

1998 Toyota Tercel Specifications

Vehicle Information
Year 1998
Make Toyota
Model Tercel
Trim -
Style -
Type Sedan
Category Compact Car
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Engine -
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Transmission -
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Transmission Speeds -
Drivetrain Rear-Wheel Drive
Additional Features
Anti-Brake System -
Steering Type -
Pricing
Manufacturer Suggested Retail Price (MSRP) -
Invoice Price -
Delivery Charges -

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What Problems Does the 1998 Toyota Tercel Have?

The 1998 Toyota Tercel, like most vehicles of its era, has some commonly reported issues, though its overall reliability is exceptional. One prevalent concern, particularly as the vehicle ages, is the potential for the automatic transmission to develop issues. While not a widespread recall item, reports of slipping or delayed shifting can occur. The cooling system is another area where maintenance is crucial; radiator leaks and failing water pumps can lead to overheating if not addressed promptly. Power steering pumps can also develop leaks or become noisy over time, requiring attention.

Rust is a common enemy for older cars, and the Tercel is no exception. Areas prone to corrosion include the rear wheel wells, rocker panels, and the exhaust system. Regular inspection and prompt treatment of any rust spots are vital for maintaining structural integrity and appearance.

While there weren't major widespread recalls specifically targeting the 1998 model for critical powertrain failures, it's always advisable to check for any outstanding recalls with Toyota. Minor issues sometimes reported include electrical glitches, such as faulty power window motors or malfunctioning interior lights, though these are generally less common than mechanical wear-and-tear items. Engine mounts can also wear out over time, leading to increased vibration, especially at idle. Despite these points, the fundamental engineering of the Tercel is robust, and with consistent maintenance, these issues can often be mitigated or repaired affordably. The 1998 model year did not have any unique or particularly egregious problems that distinguished it significantly from surrounding years within the same generation.

How long will the 1998 Toyota Tercel last?

Based on owner data and typical maintenance, a well-maintained 1998 Toyota Tercel can realistically achieve an average of 200,000 to 250,000 miles, with many examples exceeding this considerably. The long-term durability of the Tercel is one of its strongest attributes, largely thanks to Toyota's robust engineering and the simplicity of its design. Weaknesses that tend to emerge over time are primarily related to wear and tear on components like the transmission, suspension bushings, and exhaust systems. Rust can also become a significant factor, particularly in regions with harsh winters. However, the core engine and drivetrain are known for their longevity, making it a vehicle capable of many years of reliable service if basic upkeep is performed.

What Technology & Safety Features are Included?

The 1998 Toyota Tercel offers a rather basic suite of technology and features, aligning with its budget-friendly positioning. For entertainment, a standard AM/FM stereo with cassette player was common, often with four speakers. Optional upgrades might have included a CD player, but these were not universally equipped. Built-in navigation systems or complex infotainment displays were non-existent, as this was before such technologies became mainstream.

Driver-assistance features were minimal. Power steering was typically standard, enhancing maneuverability. Some higher trims or optional packages might have included power windows and door locks, and a tilt steering wheel was also a common convenience. Cruise control was an optional addition for some models.

Safety features were focused on the essentials for the time. Standard safety equipment generally included front airbags for the driver and passenger. Seat belts were, of course, standard. Anti-lock brakes (ABS) were an optional feature on some models, particularly the DX trim, and would have been a desirable addition for enhanced stopping power.

Crash-test ratings for this generation of the Tercel are not readily available from NHTSA in the format we typically see today. However, for its class and era, it was considered a reasonably safe vehicle, adhering to the safety standards of the late 1990s. It's important to remember that vehicle safety standards and testing methodologies have evolved significantly since 1998. For a vehicle of this age, one should always prioritize checking the condition of safety features like airbags and seat belts.

What Colors Options are Available?

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1998 Toyota Tercel Prices and Market Value

When new, the 1998 Toyota Tercel typically had an MSRP ranging from approximately $11,000 to $14,000, depending on the trim level and options. As a subcompact car from over two decades ago, its depreciation has been significant. Current used market prices for a 1998 Tercel in average condition can range from $1,500 to $4,000, with exceptionally well-maintained or low-mileage examples fetching slightly more. Factors affecting resale value include overall condition, mileage, maintenance history, presence of rust, and whether it has been in accidents. Its reputation for reliability helps it retain some value compared to less dependable contemporaries, making it a sought-after option for budget buyers needing a dependable runner.

1998 Toyota Tercel Cost of Ownership

The 1998 Toyota Tercel is exceptionally economical to own. Insurance costs are typically very low due to its age and lower replacement value. Fuel expenses are minimal, thanks to its excellent MPG. Routine maintenance, such as oil changes and filter replacements, is inexpensive. Repair costs are generally affordable because parts are readily available and its mechanical simplicity makes for easier labor. Many common repairs can be handled by DIY enthusiasts. Overall, the Tercel is one of the most economical vehicles to own long-term, with very low running costs.

1998 Toyota Tercel Fuel Efficiency

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1998 Toyota Tercel Safety Rating

NHTSA
Overall Rating Not Tested
Overall Frontal Star Rating Not Tested
Side Overall Star Rating Not Tested
Overall Rollover Star Rating Not Tested
Combined Front Seat Rating Not Tested
Combined Rear Seat Rating Not Tested
Overall Frontal Star Rating Not Tested
Frontal Barrier Star Ratings Not Tested
Side Barrier Star Ratings Not Tested
Rollover Resistance Star Rating Not Tested

1998 Toyota Tercel Insurance

Insurance for a 1998 Toyota Tercel is moderately priced, reflecting its status as a Sedan with strong safety ratings and
reasonable repair costs.

How Does the 1998 Toyota Tercel Compare to Other Sedan?

The 1998 Toyota Tercel competed in the subcompact segment against rivals like the Honda Civic, Nissan Sentra, Ford Escort, and Chevrolet Cavalier. In terms of performance, the Tercel was generally outmatched by the Civic, which often offered a slightly more engaging driving experience and peppier engine options. The Nissan Sentra also provided comparable or slightly better performance. However, where the Tercel truly shone was in its unwavering reliability. While its rivals could be dependable, Toyota's reputation for longevity and fewer mechanical issues often gave the Tercel an edge.

Features were basic across the board in this segment, but the Tercel typically offered the essentials with a focus on durability rather than luxury. Competitors might have offered slightly more advanced optional features, but often at the cost of reliability. Price-wise, the Tercel was very competitive, often positioned as a strong value proposition.

When considering alternatives, the 1998 Honda Civic is a very strong contender, often offering a bit more spirited performance and a slightly more refined interior, while maintaining excellent reliability. The 1998 Nissan Sentra is also a similar alternative, offering a good balance of fuel economy and practicality. For those prioritizing raw economy and bulletproof dependability above all else, the Toyota Tercel remains a top choice. If slightly more power or more creature comforts are desired without sacrificing too much reliability, a well-maintained Honda Civic of the same vintage would be a superb alternative. The Ford Escort and Chevrolet Cavalier, while often cheaper, generally did not match the long-term reliability or build quality of the Japanese offerings.

Final Verdict: Is the 1998 Toyota Tercel a Good Sedan?

The 1998 Toyota Tercel is ideal for budget-conscious individuals or families seeking an incredibly reliable and economical mode of transportation. It's perfect for first-time car buyers, students, or anyone needing a dependable daily driver for commuting and basic errands. Given its age, buying new is impossible; focus on the used market. It is absolutely worth buying if you find one in good mechanical condition with minimal rust and a documented maintenance history. Prioritize well-maintained examples over those with lower mileage but neglected upkeep. The DX trim might offer a slight edge in comfort features, but the CE is also a solid choice for pure practicality. Its worth hinges on its condition and your expectation for a simple, dependable vehicle.

1998 Toyota Tercel Owner Reviews

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Drew B

Drew is a seasoned automotive expert and contributor to VinCheck.info. With nearly 15 years of experience as a former Porsche technician, he brings a wealth of hands-on knowledge to his writing. Born in North Carolina, a region renowned for its deep-rooted NASCAR culture, Drew developed a passion for cars early in life, often building and working on vehicles from a young age. At VINCheck, Drew leverages his extensive technical background to provide in-depth analyses of various vehicles. His articles often focus on engine performance, reliability, and maintenance insights, offering readers practical information grounded in real-world experience. Some of his notable contributions include reviews on the Mazda CX-5's longevity and detailed examinations of engine options for models like the 2011 Toyota Camry and Tacoma