If those quotes are before taxes, you're being ripped off. Just check out the prices from toyota.ca ->
http://www.toyota.ca/cgi-bin/WebObje...108060e%2ehtml
The XR manual w/ B package is $23,285.
The XR auto w/ B package is $24,330.
And the XRS w/ B package is $25,560.
Your broker isn't working very hard for you.
And that salesman doesn't know what he's talking about either. The XRS' engine has an 11.5 compression ratio and requires no less than 91octane. Anything less and you're asking for trouble.
The 87 is fine if you go for the XR.