I've thought about that. It's possible, but would be difficult and expensive.
The complete rear suspension from a Corolla should fit. You'd have to make some custom mounts for the subframe to bolt to. And you'd have to relocate the gas tank for it all to fit.
But I'm certain it can be done.
better suspesion for the whole car can we say TEIN . they make shocks, struts for the starlet wich fits the tercel,paseo but you have to order then from japan or talk to a us dealer , see if he can impoort them but your looking around 1400. just for all for shocks, struts but well worth the money beleave me if i had 1400 dollars to spend i would debate between motor swap, tein its a hard toss up :whatwhat: