Take a look inside a Corolla LE with optional leather seating and you could easily imagine you're looking inside a luxury car instead of an $18,000 sub-compact. The leather seats have that soft pleated finish which so many buyers like in a car. The center console and portions of the armrest on the door panels have a wood-like veneer trim. Okay it's fake but it's so well made that it looks more realistic than some real wood found in luxury cars. Both the LE and S models get a leather-wrapped steering wheel as standard.

For most people though front-seat leg and headroom is just fine and there's a decent amount of room in the back for two average size adults. Although there are seat belts for a third rear-seat passenger, there's definitely a shortage of space for that person. Materials used in the seats appear classy with nice fit and finish. The driver's seat has a much more substantial feel than in many cars in this price range, which makes it more comfortable for long journeys. Even the doors shut with a pleasant thud thanks to sound deadening felt mounted inside the door panels.

The ergonomics of the dashboard layout are exemplary. It is nicely laid out and its finish is as good as that in all but the most expensive luxury cars. Coupled with the nice finish, it makes the Corolla feel more like a small Lexus, especially if one opts for the leather seats. The dashboard layout is the same on all models. It has a top surface that sweeps across the width of the car in a slight S-curve and wraps into the door trim. Each side of the center console seamlessly blends up to the lower portion of the dash, which includes a large glove box on the passenger side. Four small vents are nicely inlaid into the upper part of the dash.

The radio is located high up so it is easy to reach while the three large round knobs for the heating and air conditioning system are located below. The handle for the parking brake is located on the left of the center console so there's room for a small storage cubbyhole on the right.

Three overlapping round gauges in the instrument pod contain a large speedometer, a smaller tachometer to the left and a water temperature gauge and fuel gauge mounted in a matching circle to the right. They incorporate red lettering on a plain white background. There's also an outside temperature readout on all models.

Storage spaces are quite generous with small pockets in each door and cubbyholes in the center console. The rear seats split 60/40 to allow access from the trunk, though the opening is not that large, limiting pass-through with large cargo. On the other hand it's a sedan so it is not supposed to have the hauling capacity or convenience of a hatchback or station wagon. The trunk is a reasonable size although once again gooseneck hinges intrude into the cargo space and also crush fragile items if they are in the way. Many auto manufacturers have switched to the scissor-type hinges that are located outside the storage space. Quite why Toyota and other Japanese manufacturers have not switched to this design remains surprising.

All in all the interior has a high level of refinement beyond what one expects in a low cost sub-compact. On the safety side all Corollas come with multi-stage front airbags. While side curtain airbags are offered as an option on all models.