Is The ‘Toyota Tax’ Worth It? 1990 Toyota Tercel vs 1999 Pontiac Grand Am

Conventional wisdom, when someone asks “What kind of car should I get?”, is to answer with one brand name: Toyota. If you just need reliable transportation, you can’t go far wrong with any product from the Japanese giant. But with that reputation comes high residual values that can make secondhand Toyotas very expensive compared to other cars. Is the extra price worth it? That’s today’s question.

Yesterday, we looked at a couple of sporty cars that were originally marketed as economy cars. I expected the Honda CRX to win, despite its modifications, but to my surprise, the grubby but stock Pontiac Fiero beat it. Quite a few of you said that if the CRX had been stock, it would have won handily. That’s probably true – but it also would cost more than four grand, possibly a lot more.

I’ve always liked the Fiero, and I’m happy to throw my support behind it. I like CRXs too, but I dislike hacking up nice cars for no good reason. I’d rather have a bone-stock CRX HF with 300,000 miles on it than this monstrosity. The Fiero isn’t the right spec, but it isn’t entirely the wrong one either. It would do.

The Spanish priest and philosopher Baltasar Gracián once wrote: “Better to be cheated by the price than by the merchandise.” In other words, it’s generally a better deal to overpay for something that you know will be good than to take a chance on something of lesser quality for cheaper. Had there been cars in the 17th century, I’m betting old Baltasar would have been a Toyota man. Toyota’s reputation for building reliable and durable cars has made used examples a pricey proposition in many cases. You can still luck out and find one for cheap, but you have to be patient, and you have to accept the fact that the first digit in the odometer is going to be a two or higher.

Either that, or it’s going to be something painfully dull and not very well equipped, like the car I’m about to show you. As a counterpoint to it, I’ve found a car for less than half its price, that feels like a whole lot “more car.” But it’s not a Toyota. Is the lesser-but-nicer car worth the considerably higher price? That will be up to you.

1990 Toyota Tercel – $3,200

Engine/drivetrain: 1.5-liter OHC inline 4, three-speed automatic, FWD

Location: San Jose, CA

Odometer reading: 100,000 miles

Operational status: Runs and drives well

Quick! What’s the least exciting car ever built? The car that even stodgy old Consumer Reports called “dull?” Yep, that’s right – the Toyota Tercel. Through five generations, this diminutive car racked up bazillions of miles, with its little four-banger struggling to accelerate it and its skinny tires wailing in protest at even the slightest hint of spirited driving. This third-generation Tercel has had two owners and has racked up just over 100,000 miles.

This generation of Tercel has a transversely-mounted 1.5-liter four making 78 horsepower. It drives the front wheels through a three-speed automatic transmission. Bored yet? It runs and drives well, and it just passed a smog test.

One thing I have found over the years doing this job is that sellers are not always correct – or honest. The seller of this car claims it has never been smoked in, but look at the driver’s seat: that’s a cigarette burn if I ever saw one. What else are they leaving out? It doesn’t look bad inside, though. Hopefully it smells all right.

The outside looks good, with just a few dings and scrapes here and there. It’s rust-free, too. This car might not be very exciting, but there’s no reason its paint job can’t be. Imagine this car with Martini livery. Or Alitalia. Or any number of other white-based race liveries. Is it ridiculous to do that to a Tercel? Yep. Is that a reason not to do it? Hell no.

1999 Pontiac Grand Am SE – $1,450

Engine/drivetrain: 2.4-liter DOHC inline 4, four-speed automatic, FWD

Location: Tukwila, WA

Odometer reading: 169,000 miles

Operational status: Runs and drives well

It seems like everyone has a story about an N-body Pontiac Grand Am. They were so ubiquitous on American roads for so many years that nearly everyone has crossed paths with one at some point. I once changed the starter in one on a bitterly cold day in Wisconsin, and just a few weeks ago, I ragged one around a rallycross course. They’re starting to get rare, but they will never be valuable. I would imagine that the very last Grand Am ever offered for sale won’t cost more than two thousand bucks.

The Grand Am came with a few engines over the years; this one has a 2.4-liter twin-cam four-cylinder based on the old Quad 4. It drives the front wheels through a four-speed automatic. Both the engine and transmission are generally pretty reliable, in that never-say-die GM way. This one runs and drives very well, according to the seller.

You can tell the trim level of a turn-of-the-century Pontiac by counting the buttons in the interior. This is a pretty basic model; there are no buttons on the steering wheel. It does have power windows and locks, but those might have been standard by this point. It’s in good condition, and the seller says the air conditioning works fine, which is a nice bonus for a car in this price range.

It’s not the most attractive car on the road, but there is some comfort in the familiarity of it. I sometimes wonder if these came from the factory with the plastic cladding all scuffed up. Luckily, since this is a Pacific Northwest car, the cladding is unlikely to be hiding any rust, unlike midwestern examples.

Toyota reliability is no joke, but that doesn’t mean other cars won’t do just fine as well. And in this case, the other car comes with some niceties like power windows, air conditioning, and an overdrive gear, and for less than half the price. The Grand Am probably won’t be as rock-solid reliable as the Tercel, nor is it likely to last as long, but for the price, are you willing to gamble? Or are you more inclined to pay extra for a sure thing?