Stop overpaying for an EV – it’s cheaper to own a Toyota Corolla for more than 10 years

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

The Toyota Corolla challenges this narrative. Priced at just over $23,000, this compact car remains one of the cheapest new cars on sale, with exceptional reliability, strong resale values, affordable maintenance and impressive fuel economy. Even before considering long-term ownership costs, it makes a compelling case against more expensive electric alternatives.

While electric cars definitely have their advantages, the numbers show that simple, efficient gas-powered cars still have a lot of life left. For buyers focused purely on keeping costs low, Toyota’s compact sedan and hatchback continue to set a benchmark that many electric models can’t match.

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

Very reasonably priced on the front end

New car prices are constantly on the rise, with the average new car purchase in the US now exceeding $50,000. Many automakers argue that the solution to this affordability problem is to spend more on an EV up front to save you money in the long run. However, The Toyota Corolla turns this idea upside downwith a reasonable price tag, it’s easier on your bank account than most EVs with upfront and long-term running costs.

2026 Toyota Corolla trims and prices

Unfortunately, the sub-$20,000 car is dead in America. Even the most affordable models on the market start higher than that. The Toyota Corolla sits firmly among some of the cheapest new cars available, and it has enough features to make it feel like value for money.

Some EV automakers will argue that it’s better to spend more and get an electric car to save yourself some money in the long run, but even the most affordable EV costs thousands more than a Toyota Corolla. The cheapest EV in 2026 is the Chevrolet Boltit even charges another $4,000 for this Corolla.

Which trim should you buy?

If you’re looking to maximize the amount of equipment you get for your money, we’d go for the SE hatchback. It comes with a few extra features over the base sedan, including a sportier suspension setup and paddle shifters, though the paddles feel a bit odd on such cars. While the SE sedan comes with larger, sleeker wheels and slightly more rear legroom, we prefer the extra cargo space offered by the hatch.

The cost of ownership for the Toyota Corolla makes it hard to justify an EV

Toyota’s small hatch is impressively fuel-efficient

Credit: Toyota

The Corolla isn’t just about initial savings. Toyota’s whole goal with this nameplate is to make it as affordable and stress-free as possible, and we think the current iteration is sure to succeed. While electric cars obviously save you gas, in almost every other measure, Toyota’s compact car comes out cheaper.

Toyota Corolla cost of ownership

• Average annual insurance costs: 2642 dollars
• 10-year average maintenance costs: 4198 dollars
• Average depreciation over 5 years: 23%

Above are some of the biggest and most obvious costs of ownership available from CarEdge. In most sizes, the Corolla costs less than most cars on the road, whether gasoline or electric.

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

Electric car makers will claim you’ll spend less on maintenance in the long run than gas-powered cars, but CarEdge reckons the Corolla is just as affordable to keep running. According to their calculations, there are only four other models with lower maintenance costs over ten years.

The area where you get most of your money back with a Corolla instead of an EV is depreciation. This is one of the biggest hidden costs that owners don’t consider as much as they should. While the average car loses about 50 percent of its value over five years, the Corolla’s resale value is higher. It’s also worth noting that most EVs depreciate much more than average.

You still have to pay for gas, but the Corolla is still pretty fuel-efficient

Its economical construction means your gas bill is still kept low

Credit: Toyota

Obviously, the main reason you’ll switch to an EV is so you can stop paying for gas. However, with higher purchase prices, higher insurance rates and steeper depreciation rates, gas savings aren’t the only justification for an electric car. Further complicating the rationale is that the Corolla is impressively light on fuel.

2026 Toyota Corolla performance specs

Main Trim Engine

2.0 liter 4 cylinder

Main Trim Transmission

CVT

Basic Trim transmission

Front wheel

Base Trim Horsepower

169bhp @6600rpm

Main trim torque

151 lb-ft @ 4400 rpm

to do

Toyota

Model

Corolla Sedan

Segment

Compact Sedan

The Corolla comes in both hybrid and non-hybrid. The non-hybrid, obviously the more affordable option, comes with a two-liter, four-cylinder engine under the hood. It has 169 horsepower and sends it to the front wheels only through a CVT. Instead, the sedan can be had with a hybrid setup, which doesn’t make as much power but is lighter on 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. Whether you opt for a hybrid or non-hybrid Corolla, you’ll get more than that. The hybrid model isn’t that much more expensive than the non-hybrid either, with the base LE hybrid costing just $1,850 more than the non-hybrid LE.

EPA estimates that the average The most economical hybrid model has an annual fuel cost of about $1,250. The non-hybrid is a bit more, sitting at an average of $1,800. Even when you factor in fuel costs, the Corolla is cheaper than many EVs in the long run.

Toyota offers real savings that make EVs hard to justify

For a long time, the Toyota Corolla has been a safe and affordable choice. The nameplate promises strong reliability and low cost of ownership. Lately, electric car makers have been arguing that spending more on an EV will actually save you money in the long run because it requires less maintenance and you don’t have to pay for fuel. However, when you look at real-world estimates, even if you stick with old-fashioned internal combustion, the Corolla is still ahead, proving that new technology doesn’t always mean better.