I'm going to be the devil's advocate as I have been 'meh' on the XRS and maybe that'll help you either way. Having read front to back on this thread I think in general you won't go wrong with either the S or XRS, but it depends what your needs are. There have been times when I've really liked my XRS almost to the point of using the L word, but when it comes to this car my needs are really different than those of the rest of this forum I feel (and different in no way implies bad or negative, just different experiences and preferences).
Before I start, like the others I am also a grown ass man. I turn 34 in two weeks. All I do is city driving. And all of that city driving is on varying grades of hills and not the kind of Midwest, Southwest, Southeast, panhandle flat like I've seen. I drive about 10 miles of stop and go traffic a day with only a quick on and off the freeway inside the city. My typical speed is right around 35-40mph at 2-3k rpm in 5th or 6th. Before my 2005 XRS (which I purchased last June), I had an '02 LL Bean Outback with the 3.0 H6 and 120,000miles. The engine was silky smooth, the Subaru had torque and pull for days, the driving dynamics were good, f'ing loved the automatic temperature control, the dual moonroofs were amazing and made the cabin feel incredibly airy and bright (helpful in the NW with the occasional silver clouds), there was so much utility when I needed it, heated seats/mirrors/wipers were pretty handy in the winter and mountain and the seating position and feel were excellent. But the car was physically very heavy, the 4 speed transmission was really ill suited and frustrating, the expensive repair issues came once every 4-6 months, and at 16.5mpg in only city driving it just got old and expensive after three years (although 25mpg on highway trips wasn't terrible).
When I was first looking into a replacement I was also making the decision to go to school for Engineering. I decided right away to do "a city car". Something that got great gas mileage, still had a moonroof/sunroof, was a manual (a must for me, I wanted to go back badly), was lightweight and easy to flick around, yet I could feel like I could beat up on it a bit and it wouldn't fall apart like the Subaru. I wanted something that was inexpensive to maintain and I could count on it when I didn't have the extra funds to keep it from falling apart. I initially looked at a Honda fit and it was a great car but absolutely needed more power (they seem to have tacitly agreed because they've added a bit more power to the newest generation I see). I also drove a Civic and although it drove well I just couldn't get over the weird split dash and, in my own opinion, the ugly look of them (newest gens look decent again). This is where I ended up on a used Corolla.
This is also when I discovered what an XRS was when an '05 or '06 would catch my eye here or there online in the sea of used 2004-2010 S and LEs for sale that I was looking at. My thoughts were the same as I think yours are now. Which should I choose? Essentially the XRS seem like a normal Corolla except they have the option to push them into heady rpms when you feel like being spirited. The rest of it sounded awesome too. Slightly firmer/lowered suspension, well braced, more connected steering feel, 6 speed manual. I figured for 26mpg city from the standard 32mpg of the 1ZZ-FE it was still a good trade off to have that sportiness and ability.
So I know I've just been a word whore here but now you might have a better understanding where I'm coming from when I say 'meh' about the XRS. I'm approaching a year since I sold the Subaru and purchased this Toyota. So far it hasn't had much mechanical issues except for some basic aging fixes. Mine just ticked past 95,000 miles last week. I did have to replace the Idle Air Control valve because mine was gunked up and threw a CEL. I did also have some crazy idling, acceleration, and other issues caused by me when I replaced the IAC, and then later when the throttle body got reset. These have since been fixed and everything has been running smoothly. My impression is with normal maintenance and personal inspection this car will indeed run forever like the others are saying and be pretty bullet proof.
On the other hand, what everyone loves about this car, the 2ZZ-GE engine, is what I don't necessarily enjoy about it. I love the suspension, the steering, and body stiffness. I love that aspect. It is right there with you without being punishing, very taught. The 2ZZ-GE is fun on those times when you feel like WOT and it goes truly manic as it hits the lift point. The sound is f'ing intoxicating. It's like a bike but the sensation is bigger/more rough. It literally sounds like it's about to explode and that is a good thing.
Okay, so the suspension is ideal (to me anyway), the car is reliable, but why don't you enjoy the 2ZZ-GE? Well, it's neither fast by today's standards nor gets decent gas mileage. Fast is a modern 6 cylinder or turbo 4 with loads of torque and typical ~240+ hp. This is just more loud and fun than anything (which isn't bad in its own right). Has my car been fuel efficient? No. I've been driving my Corolla more casually for the last week or so and I filled up two days ago and calculated 20.4mpg. That's pretty bad considering the supposed payoff. For that figure I could have a sedan with more torque/hp per pound of vehicle and more utility. It would also have much more amenities (like the automatic temperature control I miss) and be easier/smoother to drive with the ample torque. I know a lot of guys with do get around 23-26mpg in the city with their XRS' but has never been my experience. My low mpg in the city has to do with hitting lift twice a day and living in non flat terrain I believe. I'm kind of neither getting the good gas mileage worthy of a straight forward no amenities compact car, nor the worthwhile power and comfort of a typical faster car that has a bigger engine and loaded with options. I'm just sort of hitting lift out of boredom when driving and it's not really worth the payout. A Focus ST or Mazdaspeed3 would be the better move if I wanted true speed for poorer gas mileage. The 6spd in the XRS is nice but it does require a fair amount of shifting, although I don't mind that so much. What I wish was that the C60 had the same ratios as the 5spd but just added a low cruising gear for the highways, this isn't the case. I'm often in 5th in the city doing basic driving, and sometimes 6th, all between longer lights.
What do I wish then? What I wish I could have then is the XRS suspension, steering setup, and body bracing, with the regular 5spd and 1ZZ-FE engine. Or maybe keep the 6spd with the 1ZZ. Not fast, not trying to be. Just fuel efficient with a sporty suspension that doesn't have much body roll or squish to it. Having said that, I am thinking pretty hard about selling my XRS and doing something else like a Grand Touring Mazda3 with the bigger torquier 2.3 engine, similar gas mileage to what I get with my XRS, and tons of loaded options like automatic temp control and factory HID.
I'm glad to have had my time with my XRS but it isn't for me. If I were doing this over again I would definitely purchase a regular 1ZZ-FE and reap all the benefits of a basic car that is no frills and all savings. I'd then save up and put some decent suspension and bracing into it to make it a commuter killer. In fact if I don't end up with the 07-09 GT Mazda3 this is probably what I'll be doing. Lift is tons of fun but mostly a toy to me. 32mpg in the city is where it is at.
Thanks for reading this novel :thumbsup: