Curbside Finds: 1987-90 Toyota Tercel – When Small Cars (Almost) Ruled The Roads

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A gray-market US sourced Tercel, in San Salvador. A long way from the American roads where it began its days.

Automotive history is full of evolutionary cycles. Cars tend to grow and grow; larger, heavier, and more luxurious until they eventually become too cumbersome for the moment they’re built to serve. That’s when a new, leaner generation emerges. Few examples illustrate this better than the demise of the “Broughamsauruses” of the 1970s, whose sudden decline marked the end of one era and the beginning of another. A mass extinction that left some enthusiasts mourning the old giants while others eagerly embraced a new era

As the Broughamsauruses faded away, a new generation arrived, led largely by Japanese automakers. These weren’t the crude, tinny economy cars that had once defined the segment. They had evolved into dependable, fuel-efficient, well-built machines that offered everything most buyers actually needed. Their early “tiny rodent” phase was over; they had adapted to thrive in a rapidly changing automotive landscape.

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Not unlike their “tiny rodent” counterparts, small vehicles don’t get as much love as “Broughamsauruses” do. But it’s understandable, “Broughamsauruses” were big and mighty –qualities that make for great storytelling. Look at those vinyl tops! That Bill Blass Edition! Those V8 engines!

Small critters adept at surviving by being nimble and good at hiding? Sorry, those traits just don’t capture the public’s imagination as much.

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As is known, the circumstances behind the rise of these critters were far from cheerful. The 1970s were a turbulent decade throughout the Western world, both economically and culturally, and the automotive landscape reflected that upheaval. Rising fuel prices, tighter emissions standards, and changing consumer priorities accelerated the shift toward compact, efficient cars. They quickly became a common sight on American roads, even if their once-plentiful numbers are difficult to imagine today, given how few survivors remain on US roads.

But in case you haven’t seen one in a while in your neck of the woods, here’s a grey-market US version one, found in San Salvador. What stories could this tiny living fossil have to tell? And where in the US did its riding days start?

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I guess it makes sense that once the small car era faded in America, today’s subject would look for a new place to survive. And it certainly has extended its living days in San Salvador, a Toyota-loving city.

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But despite this Tercel being in El Salvador, it only reminds me of my days in Puerto Rico, when one like it served as our family car in my late teens.

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When these 3rd generation Tercels arrived in 1987, they were Toyota’s smallest and cheapest offering in the US. In hatchback form, the new Tercel looked like a cross between a Pacer and an Alfa 164’s side-styling treatment.

Well, not quite, as the 164 appeared in ’87, so it couldn’t be a source. But it certainly had that around-the-body middle crease that looked Italian in origin. Maybe the Alfa 90 served as inspiration?

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From ’78 to ’85 the Tercel had enjoyed an FWD longitudinal layout, but things were going to change for ’86. With the Corolla sedans going for a traverse FWD setup in ’84, the Tercel finally adopted the format for the third 1987-1990 generation.

Not a groundbreaking event, but a relevant evolutionary step for the model, joining the tech that had become standard on compacts and subcompacts. Beyond the new powerplant layout, the model’s rack and pinion was updated, and it gained all-around independent suspension. Under the hood, a new 12-valve E-series engine appeared in 1.5 L displacement. Four options were available in the transmission department, with a choice of 4 or 5 speed manuals, and 3 or 4-speed automatics.

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Besides the 3-door hatchback, a 2-door sedan was also offered on US soil. As usual, other bodies and setups were available in other markets, like a 5-door hatchback and turbo-powered and diesel versions.

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In Puerto Rico, these were sold as the “Sexy Tercel”. To this day, I have yet to see where the “sexiness “is… that said, the car’s styling was very ’80s modern, and attractive in an origami kind of way.

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As mentioned earlier, a 1988 Tercel much like this one served as our family car back in Puerto Rico, an episode that has its own COAL chapter. A problem-free car, that was anything but exciting. On the other hand, while my Mom’s coworkers had plenty of issues with their 1980s GM cars (from imploding engines to plenty of electrical gremlins), the Tercel never failed. The vengeance of the critters?

About 100K of these Tercels sold in the US both in ’87 and ’88, in a time when if small wasn’t necessarily desirable, it was socially acceptable. And these sensible cars struck a chord with buyers of the period, helping to develop lifelong loyalties. In my home, Mother remained a Toyota devotee until the end. And her story was one of many.

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In the mid-eighties, small was still a relevant market and the Tercel was one of many. For 1986, the newly arrived Yugo sold 142K units while that other new arrival, the ’86 Hyundai Excel moved 167K units. Needless to say, those didn’t leave that good an early impression, with one disappearing altogether.

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But “more is more” is a never-dying sales tactic and a very attractive one to buyers (and carmakers), as such, the small car era peak proved short-lived. Today’s Civics are huge against those of the ’70s (or ’80s), as well as Corollas. Even where I live, in South America, growth and spread have been taking over the automotive market. Folks just have different and greater expectations today.

So even over here, these drivable fossils are becoming scarce. Yet, every once in a while, one appears. To find one, attention must be paid, for they’re tiny and easy to miss.

 

Related CC reading:

Curbside Classic: 1976-1982 Toyota Tercel – Toyota Nails Another One

COAL 1989 Tercel: Suddenly It’s 1980… In 1987!