Toyota Corolla vs Subaru Outback

What's the difference?

The final score for this review makes it look as though the Corolla is a middling effort. The scores for each individual section of the review are well considered and fair. The Corolla does lack the practicality of some of its rivals. A lack of an ANCAP rating isn’t great and the powertrain is just okay. But it remains one of the most fun-to-drive hatchbacks on the market today, even seven years into its life, and I would wholeheartedly recommend the Corolla to anyone looking for a small car. If you can forgive some of the quirks, it is a reliable, adorable, fun and efficient small car favourite. 

Over 30 years and seven generations of Outback in Australia, the latest might just be the best.

It's great to drive, even better to sit in, very easy to live and willing to go further than most equivalent large SUVs at its price point.

The styling is definitely divisive, with purists unhappy that the long, crossover wagon silhouette is now gone, but what we have instead is a family-friendly vehicle that pleases on so many fronts.

We’d go as far as saying the latest Outback might be the most-rounded Subaru currently available, and great value to boot. And the base AWD is all the SUV most people will ever need.

That’s not bad for something this square!

Note: CarsGuide attended this event as a guest of the manufacturer, with travel, accommodation and meals provided.

It’s been around for a good seven years, but the current-gen Corolla hatch is still a smart design. It has a squat stance and looks as though it has sporty intentions (it doesn’t), and the head and tail-light treatment doesn’t look like anything else in the segment.

The Corolla has adorable proportions and a pert little behind in a sea of increasingly boring small SUVs.

However, in SX trim and in the ‘Sunstone Orange’ body colour of my test car, the Corolla gives off rental car vibes. Which is hardly surprising given lower grade Corollas are a favourite of rental companies.

Inside that vibe continues. This is where the Corolla is really showing its age.

There are various shades of grey throughout the cabin, with a mix of hard and soft plastics. The cloth seat trim is drab, which is a shame because some other brands have managed to make cloth cool again. Not Toyota.

The touchscreen sticks up out the top of the dash like an old iPad and the dash design is old but functional. 

There is nothing inspiring about this interior design. In saying that, of those aforementioned rivals, only the Mazda3 and the new Kia K4 have modern cabins.

Historically, Subarus have majored on quirky. Kooky even.

Think buggy ‘60s 360, offbeat ‘70s 1400, spacey ‘80s Vortex, futuristic ‘90s SVX, Alfa-esque ‘00s pre-facelift Tribeca, dorky ‘10s Exiga. We’d go as far as saying that, in over 50 years, only a handful of Subarus have looked normal. And they’ve all been boring. The beautiful ones, like the original Impreza and ’03 Liberty, remain stunning.

But quirkifying such an important family car in such a mainstream segment… that's risky. And we’re here for Subaru’s boldness. We just wish the details weren’t so heavy handed.

Longer, larger and wider than any prior version, the 2026 Outback shares its stretched platform architecture fundamentals with the latest Forester. That’s a sound basis. Just Xeroxed up by about 15 per cent. Boxy shape. Deep glass. Wide doors. Form over function. This is designed to make life easier.

What you make of the Wilderness’ visual features, including the dramatic grille mask, SUBARU wording, painted trim surrounds and cladding-on-cladding (behold the Kia Tasman-like squared-off wheel arches if you dare) is down to personal taste. Eyes be damned! But it is so far-removed from the elegant grace of the previous model that some might argue a name change would at least have silenced the critics.

On the other hand, besides fugly being in Subaru’s DNA, a large, lofty SUV is probably truer to the term ‘outback’ than on any elegant and gracefully-silhouetted crossover wagon.

Meanwhile, the polar opposite is true inside. It’s as if the interior designers strove for class and calm, with none of the exterior styling’s visual noise, or shouting in the Wilderness’ case. And there is the luxury of space, vision and scope, further enhancing the Outback’s usefulness. That you can’t see the body, just the beautiful cabin’s detailing, elevates this Subaru. Unlike in the previous model, which was a bit of an aesthetic and functional mess inside.

The Corolla is a small car and that is evident inside. You might bump elbows with your front passenger, but I have no problem with the front leg or headroom.

Those cloth seats might be drab but boy they are comfy, and the fronts have loads of side bolstering. 

The steering wheel has typically clear controls and looks and feels nice. 

As a more, shall we say seasoned model in the segment, the Corolla still has buttons on the dash for things like air con, but not too many. That bulbous centre stack and the centre console, however, could be better designed for the space.

As it is, the wireless charging pad is hidden under it at the far end of the console. It’s a bit fiddly to get your phone in and out. This is also where one of the USB-C ports lives.

The other one is in the central storage bin which is quite small, but also houses a 12-volt outlet. There are no other places to store things because of the rounded shape of the console, which also features a couple of narrow cupholders.

OurCarsGuide bottle had to be squeezed into the door storage cavity - only narrow, short vessels will fit properly.

That 8.0-inch multimedia screen is very easy to navigate, with logical menus and icons. However, it’s almost too basic, which is not helped by the all-white background. It could be a more engaging set-up but it’s also very hard to fault the functionality. Our Apple CarPlay maintained its connection the whole time with the car, too.

Space is quite tight in the rear, although I have enough headroom for my 184cm frame. Legroom is just okay behind my driving position. There’s more space in the back of a Hyundai i30. It’s also dark because of smallish rear windows and thick C-pillars. 

The rear seat backrest is quite upright, but, like the front seats, well cushioned.

Amenities are just average back there - there’s a weird cupholder high on the door, only a passenger side map pocket, no rear air vents and no USB ports, although you could easily use the one housed in the front central bin. There’s a rear fold-down armrest with two cupholders.

The rear seats split and fold 60/40 and they fold flat making for a better loading space.

The good news is the SX (and the base Ascent Sport) come standard with a temporary spare wheel, which is great news for a hybrid model. The bad news is, that reduces boot space to a paltry 217 litres. 

That’s off the pace of all of its key hatchback rivals, including the Mazda3 which has its own cargo concerns at 295L, and the Hyundai i30 with 395L.

The Corolla ZR hatch has more space at 333L but you only get a tyre repair kit instead of a temporary spare. 

If you’re dead set on a Corolla but need more cargo space, consider the smart looking sedan that has 470 litres.

Like all Subarus, Outback boasts an interior of very high-quality craftsmanship, being built beautifully, without rattles or noises or jarring trim.

The difference here is just how pleasingly practical and easy yet attractive this environment is, from the moment that wide-opening door opens and shuts with reassuring solidity.

The horizontal dash layout departs from the Tesla-aping portrait screen domination of the previous generation, banishing the confusing and annoying virtual controls for real, live buttons.

But is it original? The layered presentation is attractive and distinctively Toyota… err Subaru. Yes, it is very much like the bZ4X-based Solterra EV’s look inside.

That’s no bad thing from an ergonomic point of view. The driving position is flawless, the seat/wheel/controls relationship considered and the placement of the climate controls, audio system, armrest and storage just right. We’re also happy to see the instrumentation display incorporate various visual choices, including digital analogue-style dials.

A particular callout goes to the slick and speedy tactility of the brand’s latest touchscreen, as well as the (again suspiciously Toyota-like) interface and graphics layout. It’s all good.

But wait, there’s more. The Outback’s front seats are claimed to be particularly supportive, and after hours in them on and off road, they seem to exceed Subaru’s claims.

If you’re expecting regular mid-sized SUV levels of interior space, be prepared to be impressed, because the Outback’s extra sizing outside seems to be multiplied inside. There’s ample room for long legs, big hats, broad shoulders and buxom hips. It all works so well. This is probably one of the best modern SUV interiors, period. Nothing seems to have been overlooked.

The rear seat is presented to please, too. It can seem a bit drab in the lower-line models, but the same virtues of effortless entry/egress, seat comfort, convenience (including air vents, USB ports, cupholders and armrest placement) apply. We noted the lack of road/tyre noise intrusion at speed, too.

Behind the very sixties Jeep Wagoneer-looking rear is a vast luggage area, complete with a low floor, remote rear-seat folding handles, 12V outlet and quality trim. And that space-saver spare lives underneath.

Subaru seems to have designed this car from the inside out and it shows. A rare 10/10 from us.

Bad news first. Model-for-model, each Outback grade is now up around 10 per cent compared to the preceding, more petite and prettier version.

This means the cheapest of the five grades available, known simply as AWD (for all-wheel drive – this seems almost redundant for a non-BRZ Subaru), now kicks off from $48,990. All prices here are before on-road costs.

This includes a proper off-road mode, climate control, synthetic leather trim, a 12.1-inch multimedia touchscreen, 12.3-inch electronic driver display, wireless Apple CarPlay and Android Auto, a powered tailgate, heated front seats with powered driver’s side, chunky roof rails, 18-inch alloy wheels (with a space-saver spare – thank you, Subaru), nine airbags and comprehensive Advanced Driver Assist Systems (ADAS). Check out the safety section further down for more details.

Notes for the facelift, Subaru: Why can’t the base grade come with cloth, rather than clammy vinyl seats?

Next is the AWD Premium. From $53,490, that’s a reasonable ask given its 360-degree-view monitor, sunroof, heated steering wheel, powered front passenger seat and 12-speaker Harman Kardon audio upgrade.

The $56,990 AWD Touring includes Nappa leather, ventilated front seats, heated outboard rear seats, a wireless charger, active lane change, auto-fold mirrors with self-dipping in reverse (c’mon, this should be standard) and glossier alloys.

From here, we’re in new Wilderness territory. Two grades, AWD Wilderness from $59,690, adding more cladding upon cladding, a turbo engine, electronic dampers, 20mm extra ride height, broader 'X-Mode' off-road functionality, a wireless charger, claimed water-repellent seat trim, different fog lights, black-finish alloys and more.

But, strangely, you lose the sunroof, sat-nav, 360-degree view monitor and premium audio. Subaru demand another $3.0K to restore these in the flagship AWD Wilderness Apex from $62,690.

Still no cloth option, though. We’d like a new base AWD grade with the Wilderness mechanical gear and stance but not the extraneous cladding and visuals, and with coarse fabric upholstery, manual option and steel wheels. Maybe call it Leonie for fun.

Anyway, does new Outback represent value for money? One of its main rivals in the sparsely-populated five-seater large SUV class (most have three rows) is the Mazda CX-60. The AWD slots nicely between the slightly cheaper but very basic four-cylinder RWD Pure yet undercuts the much-sweeter six-cylinder AWD version, so we’d answer that with a yes.

Furthermore, when you tally up all that extra stuff, size and space, today’s out-stretched Outback offers comfortably more over the old model than that modest 10 per cent price hike suggests. That’s a win for buyers.

Since Toyota dropped the petrol engine from the Corolla range, it’s a hybrid-only affair.

The powerplant is a 1.8-litre naturally aspirated petrol engine paired with Toyota’s fifth-generation hybrid system that incorporates a lithium-ion battery, which is lighter yet more powerful since the 2022 update.

The Corolla drives the front wheels exclusively via a continuously variable transmission (CVT).

It’s not the punchiest engine and could do with more poke, but Toyota does do hybrids well. 

Don’t worry, Subaru traditionalists. The Outback again offers a pair of horizontally-opposed 'boxer' four-cylinder engines.

The regular Outback versions are powered by a 2.5-litre twin-cam petrol unit making 137kW of power at 5800rpm and 254Nm of torque at 3700rpm.

Choosing the Wilderness switches things up to a 2.4-litre turbo version delivering 194kW at 5600rpm and 382Nm between 2000rpm and 3600rpm.

Both use a continuously variable transmission (CVT) with eight artificial ‘steps’ for a more torque-converter-like experience. Sadly, no manual gearbox is available.

According to Toyota the official fuel-use figure for the Corolla hybrid hatch is 4.0-litres per 100 kilometres and CO2 emissions sit at 90g/km.

While the trip computer said 4.8L/100km at the end of our week, my own fuel consumption calculation came to 5.8L.

You will only need 91 RON 'standard' petrol to fill up the Corolla.

Where the Outback regresses compared to its predecessor is efficiency.

Despite a modest 50kg weight rise, the substantially boxier shape is probably behind the jump in petrol consumption, rising nearly one litre per 100km compared to before in the Outback, and nearly 2.5L/100km, in the heavier Wilderness.

The combined average consumption figure for the 2.5-litre naturally aspirated engine is 8.1L/100km, for a carbon dioxide emissions rating of 183 grams per kilometre, while the 2.4-litre turbo manages 9.7L/100km and 228g/km.

Filling the 63L tank, expect an average range of about 777km in the former and just 648km in the latter. Surely, the coming hybrid version can’t arrive soon enough for some buyers.

At least both engines can drink from the standard 91 RON petrol bowser.

So much for the theory. Out in the real world, over a solid day's testing on- and off-road, we found there was a difference of about 1.5L/100km between the regular Outback and the Wilderness.

Most generations of Corollas have been solid, dependable and occasionally, even fun to drive. 

My first car was a Holden Nova GS hatchback, which was a rebadged version of the seventh-generation Corolla. I loved that car. It was zippy, fun and super economical.

The same principles generally apply to the current-gen Corolla. Thankfully, Toyota’s former CEO, Akio Toyoda, insisted all models from the Camry to the Kluger needed to be injected with more fun. And he succeeded with the Corolla. So much so that they've spun off a wild GR performance hot hatch version.

The Corolla sits low to the ground and it just feels much more connected to the road than a small SUV can. Even in mid-range SX guise, the Corolla can hug a corner and there is ample grip to ensure a fun drive on your favourite winding road.

Sure, the hybrid powertrain might not set your heart racing, but it is quick enough from a standing start and it lacks the lag of some of its turbocharged contemporaries. There’s also plenty of poke on tap for a small car when overtaking.

Even though it has a sporting edge to how it handles, the Corolla SX has been tuned for comfort first and foremost and this is another area it excels. The damper set-up ensures the Corolla soaks up speed bumps, nasty potholes and whatever else our shoddy roads can throw at it. At no point in my seven days with the Corolla did I complain about a harsh bump or thud.

Steering has a mechanical feel but it is still sharp, adding to the ‘chuckable’ vibe of this hatchback.

The powertrain can be noisy when pushed and combined with a CVT auto it’s the nicest sounding engine out there. Also, the transition from electric to petrol power isn’t particularly smooth. Other carmaker’s hybrid offerings - like Honda for example - are close to seamless. 

Some road noise gets into the cabin but it’s no deal breaker.

Confession time. The way the previous Outback drove was profoundly disappointing. The steering felt numb, the ride was too stiff and the car seemed wilfully dull, even in the turbo version.

The contemporary Forester ran rings around it for driving pleasure and refinement.

But Outback number seven is completely different and maybe the best-driving non-WRX Subaru right now.

From the moment you climb on board this vast SUV from Japan, everything feels right – from the driving position and relationship with the controls, to the sumptuously comfy seats and commanding vision all around the vehicle. That’s a promising start.

Push the ignition and press the accelerator down, and the regular Outback 2.5 quietly, gently and smoothly moves off the line. With modest power outputs and a CVT, you might expect it to also sound revvy and droney, but instead the acceleration is strong and throttle responses determined.

We drove this for hundreds of kilometres and never found the performance lacking, even with three adults and their luggage on board, over hilly and even mountainous terrain. Yes, it is possible to have the CVT whining at higher revs, but not within normal driving scenarios. And the quietness and lack of road noise is terrific.

Moving to the Wilderness and its 2.4-litre turbo powertrain, the same applies, except of course mid-range response is significantly faster and with a slicker, more refined delivery. Press and squirt, this is deceptively quick, because the car does a great job in masking the noises and vibrations that working an SUV hard often elicit.

We only wish there was a manual option. With steel wheels, cloth seats and without the Wilderness' add-on gargoyles.

Now, it also seems that Subaru listened and learned from previous criticisms like ours, because the Outback’s newly-redesigned steering is a delight, with a natural, fluent sweetness and ease that’s combined with a pleasing connection with the driver.

The result is balanced, controlled and enjoyable handling, backed up by reassuringly stable road holding. We drove through a sudden, heavy thunderstorm near Bathurst on the first, hot summer afternoon’s test session, and found the Outback to feel impervious through such slippery conditions.

And this all largely applies to the Wilderness as well, though its 20mm-higher ground clearance (to 240mm) makes it feel a little less composed than the glued-down regular model. Both feature a stiffened body and multi-link rear suspension, by the way.

More progress has been made in the Subaru’s ride quality. Gone is the hard suspension feel, for a far-less firm set-up, providing a comfortable and queasy-free ride. Even in the loftier Wilderness. This is the model’s greatest advance over its predecessor and we’re extremely happy with the outcome.

Finally, other than the at-times over-eager driver-attention monitor, the ADAS tech provides subtle, nuanced back-up, with quiet lane-keep intervention, a measured adaptive cruise-control functionality and no jarring buzzes and warnings.

We also enjoyed a session taking both grades off road, to show off their 4WD prowess. The clearances are ample, the hill-descent tech effective and the ability to scramble over wet rocks impressive. The Wilderness especially may even live up to its name!

This is a difficult SUV to fault. The Outback’s breadth of capability on and off the beaten track give it an unusually wide bandwidth for what is a monocoque bodied family convenience. That there is so much sophistication and fun to be had as well make this so much better to drive and live with than the disappointing old version.

We can’t wait to get to know the latest Subaru better on more familiar roads.

There is no ANCAP crash-test rating at the time of publishing, but anything less than the full five stars will come as a scandalous shock from Subaru.

The Outback’s aforementioned ADAS tech runs to AEB front and rear, rear cross-traffic alert, blind-spot monitoring, emergency lane-keep assist, lane-departure warning/prevention, a pre-collision braking system, adaptive cruise control with full stop/go functionality across all grades. Also present are traffic-sign recognition and new acceleration override tech to help prevent collision. Nine airbags are fitted, while a front-centre airbag is new to the series.

No AEB performance parameter information has been released as yet for Australian models.

Finally, there are two outboard rear-seat ISOFIX child restraint points and two top tethers available.

The Corolla is covered by Toyota’s five-year/unlimited kilometre warranty, which, given Kia, MG, GWM, Jaecoo and more have longer terms (not to mention Nissan and Mitsubishi’s conditional 10-year terms) is now officially trailing its competitors.

However, the capped-price servicing plan of up to five years costs just $250 for each service, which is incredibly competitive. The service schedule is every 12 months or 15,000km, whichever occurs first.

Subaru offers a five-year/unlimited kilometre warranty, and that also comes with 12 months of roadside assistance.

Now, that's pretty average nowadays, so nothing special, particularly when other SUV companies like Mitsubishi, Nissan and MG offer conditional 10-year warranties.

Service intervals are at 12 months or 15,000km for both engines. There is a capped-price servicing offer covering this timeframe. They are currently listed at approximately $350, $530, $405, $705 and $370 for an average of $472 per workshop visit.

There are 128 dealers or authorised Subaru service centres across Australia as of January 1, 2026.