Not your Typical Wagon: The 4WD Toyota Tercel

Millennials have the largest buying power of any age group in the world right now, and vehicles from the 1990s from which they grew up with are all the rage right now to scoop up and own as fully contributing members of society. One such vehicle is none other than the diamond in the rough, the second generation L20 Toyota Tercel 4WD Wagon.

The second generation of Toyota Tercel Wagons went into production in May of 1982. They were primarily available in 4WD configurations. Toyota fitted all North American Tercels with a 1.5L four-cylinder engine that produces a modest 63 hp and 4800 rpm.

As with the previous generation, they mounted the Tercel’s driveline longitudinally, instead of using the transversally mounted configuration that was starting to become standard in import vehicles.

The decision to mount the driveline longitudinally was due to the bulky 4WD system. These 4WD drivelines (chassis code AL25), were equipped with a six-speed manual transmission and the transfer case was synchronized, meaning a butter smooth shift from two- to four-wheel drive without coming to a stop.

Unusually, the sixth gear in the transmission is actually an “extra low” first gear, giving the transmission a 17.6:1 final drive ratio.

We put this extra low gear in place to allow the engine to develop the torque needed to extract the vehicle from conditions that would normally require a low range transfer case.

The manufacturer included an inclinometer mounted above the radio for measuring the tilt of the car with the 4WD systems. This was the same quirky dashboard gadget you’d find in some of Toyota’s most adventurous models—yes, even the Land Cruiser. And while the Tercel lacked the brute force of its off-road siblings, it did offer something they didn’t: eye-catching, lumberjack-plaid seats that injected a bit of personality into the otherwise utilitarian interior. These touches, both functional and fun, gave the Tercel 4WD wagon a unique charm that set it apart from the wagon crowd.

Evolution of the Toyota Tercel

The plucky Tercel was a parts bin car, borrowing from existing pieces in Toyota’s growing 1980s lineup. Toyota used the engine, transaxle, and front-wheel-drive system from the previous generation Tercel, and they took the live rear axle from rear-wheel-driven Corollas.

The engineers built the transfer case into the six-speed transmission housing, making it the only unique part of the Tercel. Normally the 4WD Toyota Tercels were front-wheel-drive cars. When the driver pulled back on the transfer case shifter to shift into 4WD, the system engaged the rear differential.

It is worth noting that the transfer case in Tercels do not have a center differential, so like much of the part-time 4WD vehicles Americans are used to, it cannot be used on the street, unless there is a compromising surface on the pavement.

In 1985, the designers made minor changes to the styling of the vehicle, but by February 1988, people had decided the Toyota Tercel 4WD was no longer cool. The third generation was essentially more Corolla than anything else, and as Toyota’s cheapest model it competed directly with the Volkswagen Golf.

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