There's plenty of front legroom and headroom. The Corolla seems particularly well suited to shorter people who often find it fits them perfectly. Big and tall people may find the accommodations cramped, however.

The back seats offer a decent amount of room for two average-size adults. Seat belts are provided for a third rear-seat passenger, but there's little space for such a 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.

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 a $17,000 compact. The leather seats have a luxurious soft pleated finish, while the center console and door panels have wood-like veneer trim. Okay, it's fake, but it's so well made that it looks more realistic than the real wood found in some luxury cars. Both the LE and S models get a sporty leather-wrapped steering wheel that adds to the enjoyment of driving.

The XRS gets sport seats, a silver-colored instrument cluster and switch plates, Lexus-like Optitron gauges, and a leather-like shift boot and leather shift knob.

The dashboard is nicely laid out with exemplary ergonomics and a finish comparable to that of more expensive cars. Its top surface 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. Four small vents are nicely inlaid into the upper part of the dash.

The radio is located high on the center stack so it's easy to reach. Three large round knobs for the heating and air conditioning system are located below the radio. 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.

Storage space is generous. The glove box is big and there are small pockets in each door. Map lights for upper models are mounted on the rearview mirror, not the ideal location as it's easy to mess up the mirror adjustment when trying to switch on a light.

The instrument panel is dominated by three overlapping round gauges, 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 and are easy to read at night. There's also an outside temperature readout on all models.

The trunk is one of the biggest in this class. The gooseneck hinges intrude into the cargo space and can crush fragile items if they are in the way, but this design results in a larger trunk opening than using the scissor-type hinges that require a larger flange around the trunk opening. The rear seats are split 60/40 to allow access from the trunk. The opening is relatively small, limiting pass-through for large cargo, but it's handy for skis, fly rods, brooms and other long items.

All in all, the interior has a high level of refinement beyond what one expects in a low cost sub-compact.