- The 1998 Toyota Tercel continued the fifth and final generation of a subcompact car that Toyota had manufactured since 1980. Toyota restyled the 1995 Tercel and added driver and passenger side airbags and the 1996 model carried over these changes. In 1996, prospective buyers could purchase the Tercel as a base model coupe, DX coupe or DX sedan. Purchasing the "DX" level added features such as tinted glass and color-matched body moldings.
- In 1996, Toyota installed a 1.5-liter displacement in-line four-cylinder engine in all of its Tercel models. This engine consisted of an aluminum alloy block and heads with a bore of 2.91 inches and a stroke of 3.43 inches. Toyota equipped this engine with dual overhead cams and a sequential multiport fuel injection system that utilized four valves per cylinder, for 16 valves total. Toyota's 1.5-liter I4 produced 93 horsepower at 5,400 rpm and 100 foot-pounds of torque at 4,400 rpm. This engine achieved a compression ratio of 9.4-to-1.
- Toyota offered four transmissions for its 1996 Tercel. The company equipped the base model coupe with a four-speed manual transmission with overdrive. Buyers could upgrade the coupe to a three-speed automatic. Both sedans came standard with a five-speed manual with overdrive, which buyers could upgrade to a four-speed automatic with overdrive. All 1996 Tercels used front-wheel drive.
- The Auto Channel website reports that a 1996 Toyota DX sedan could accelerate from 0 to 60 mph in 11.2 seconds and cross the quarter mile in 18.3 seconds with a speed of 76 mph. A 1996 Tercel could hit a top speed of 110 mph. Fuel economy varied depending on the transmission installed. A 1996 Tercel coupe rated 31 to 33 miles per gallon (mpg) during city driving and 35 to 39 mpg when driven on the highways, with the lower number representing the fuel economy for the three-speed automatic models. Sedans earned 30 to 31 mpg in the city and 39 mpg when driven on the highways.
- Toyota built both sedans and coupes on the same platform, which gave all 1996 Tercels a length of 162.2 inches and a wheelbase of 93.7 inches. A 1996 Tercel stood 53.2 inches in height and had an overall width of 65.4 inches. These cars weighed between 1,940 and 2,100 lbs., depending on the body style and transmission installed. All 1996 Tercels sat five. The driver and front passenger enjoyed 38.6 inches of headroom, 41.2 inches of legroom and 54 inches of hip room. Rear passengers could sit up into 36.5 inches of headroom, 31.6 inches of legroom and 49 inches of hip room.
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