Stop paying more for an electric vehicle: Toyota Corolla costs less in 10 years

New car prices continue to rise, and the average transaction price in the United States now sits well above $50,000. Many automakers argue that spending more on an electric vehicle is the smartest long-term financial decision, claiming that the lower running costs eventually offset the higher purchase price.

The Toyota Corolla challenges that narrative. With a starting price of just over $23,000, the compact car remains one of the cheapest new vehicles on sale while offering exceptional reliability, strong resale values, affordable maintenance and impressive fuel economy. Even before you factor in long-term ownership costs, it makes a compelling argument against more expensive electric alternatives.

While electric vehicles certainly have their advantages, the numbers suggest that simple, efficient gasoline-powered cars still have plenty of life left in them. For buyers focused solely on keeping costs down, Toyota’s compact sedan and hatchback continue to set a benchmark that many electric models struggle to match.

The Toyota Corolla is one of the most affordable new cars of 2026

Quite affordable from the start

New car prices are rising steadily, and the average new car purchase in the United States now far exceeds the $50,000 mark. Many automakers have claimed that one solution to this affordability problem is to spend more on an electric vehicle up front to save money in the long run. However, The Toyota Corolla destroys that ideawith an affordable starting price and long-term running costs that are much easier on your bank account than most electric vehicles.

Versions and prices of the Toyota Corolla 2026

Unfortunately, the sub-$20,000 car is dead in the United States. Even the most affordable models on the market start at a higher price. However, the Toyota Corolla sits firmly among some of the cheapest new cars available and comes loaded with enough features to make it seem like it’s worth the money.

Some EV automakers will claim that it’s better to spend more money and get an electric car to save some money in the long run, but even the most affordable EV costs thousands of dollars more than the Toyota Corolla. The cheapest electric vehicle in 2026 is the Chevrolet Boltand even that demands another $4,000 more than the Corolla.

What fit should you get?

If you’re looking to maximize the amount of equipment you get for your money, we’d opt for the SE hatchback. It comes with a few additional features over the base sedan, including sportier suspension tuning and paddle shifters, although the paddles feel a little strange in a car like this. While the SE sedan comes with larger, sleeker wheels and a bit more rear legroom, we prefer the extra cargo space the hatch version offers.

Toyota Corolla ownership costs make an electric vehicle difficult to justify

Toyota’s small hatch is impressively frugal

Credit: Toyota

The Corolla isn’t just about upfront savings, though. Toyota’s goal with this model is to make it as affordable and stress-free as possible, and we think the current version definitely succeeds. While electric vehicles obviously save you money on gas, in almost every other measure, Toyota’s compact car works out cheaper.

Toyota Corolla Cost of Ownership

• Average annual insurance costs: $2,642
• Average maintenance costs over 10 years: $4,198
• Average depreciation in 5 years: 23%

Below are some of the biggest and most obvious costs of ownership, according to CarEdge data. By most metrics, the Corolla incurs much lower costs than most other cars on the road, whether they run on gasoline or electricity.

In terms of insurance, CarEdge estimates that the Corolla will cost you $238 more per year than the average car. However, electric cars are typically much more expensive to insure than the average car.

Electric car makers will claim that in the long run they will spend much less on maintenance compared to gasoline-powered cars, but CarEdge estimates that the Corolla is just as affordable to keep running. According to their estimates, there are only four other models that have lower maintenance costs in ten years.

One area where you get a lot of your money back if you stick with the Corolla instead of an EV is depreciation. It’s one of the biggest hidden costs and one that homeowners don’t consider as much as they should. While the average car loses about 50 percent of its value in five years, the Corolla’s resale rate is much higher. It’s also worth noting the fact that most electric vehicles depreciate much more than average.

You still have to pay for gas, but the Corolla is still pretty economical

Its economical configuration means your gas bill stays low

Credit: Toyota

Obviously, the main reason you would switch to an electric vehicle is so you can stop paying for gas. However, with higher purchase prices, higher insurance rates, and much steeper depreciation rates, gas savings alone don’t justify an electric car. What makes the justification even more difficult is that the Corolla consumes surprisingly little fuel.

2026 Toyota Corolla Performance Specs

Basic tuning motor

2.0 liter 4 cylinder

Base Fit Transmission

CVT

Base trim powertrain

front wheel drive

Base Adjustment Horsepower

169 horsepower at 6600 rpm

Base tightening torque

151 foot-pounds @ 4400 RPM

Do

toyota

Model

Corolla sedan

Segment

compact sedan

The Corolla comes as a hybrid or non-hybrid. The non-hybrid is obviously the most affordable option, as it comes with a two-liter four-cylinder engine under the hood. It produces 169 horsepower, which it sends exclusively to the front wheels through a CVT. Instead, the sedan can be had with a hybrid configuration, which doesn’t make as much power but consumes much less fuel. Hybrid models can also be equipped with all-wheel drive.

fuel economy

The EPA estimates that the average new car gets 28 miles per gallon combined. Whether you opt for the hybrid or non-hybrid Corolla, you’ll get much more than that. The hybrid model isn’t much more expensive than the non-hybrid either, with the base LE hybrid only costing $1,850 more than the non-hybrid LE.

The EPA estimates that the average The annual fuel cost for the least expensive hybrid model is about $1,250.. The non-hybrid costs a little more, with an average price of $1,800. Even when fuel costs are taken into account, the Corolla is still cheaper than many electric vehicles in the long run.

Toyota offers real savings that make electric vehicles hard to justify

For as long as it has existed, the Toyota Corolla has been the safe and affordable choice. The nameplate promises high reliability and low ownership costs. In recent times, electric vehicle manufacturers have claimed that spending more on an electric vehicle will actually save you money in the long run, since there is less to maintain and you don’t have to pay for fuel. However, when we look at real-world estimates, the Corolla still comes out ahead even if it sticks to the old internal combustion, proving that new technology doesn’t always mean better.