The Toyota Yaris is the most affordable passenger car offered by Toyota. It is available as a four-door sedan and a three-door liftback. For 2008, the Yaris adds the sport-themed liftback S model. Yaris also comes with new features such as color-keyed front and rear under-bumper spoilers; amber illuminated tachometer; sport seat fabric; universal mini-jack port; and "S" badging, among others.

The 1.5-liter, four-cylinder engine is equipped with variable valve timing with intelligence (VVT-i), producing 106 horsepower at 6,000 rpm, and 103 pound-feet of torque at 4,200 rpm. Both models come with a standard five-speed manual transmission and offer an available four-speed automatic transmission.

The Toyota Yaris liftback features a strong, modern, mono-form shape with short overhangs. The arched beltline, and the wheels pushed outward at each corner give the liftback an assertive stance. It has integrated bumpers and headlamps; and color-keyed door handles and mirrors. The interior provides a roominess that belies the exterior dimensions. The upscale and comfortable cabin provides rear seating for three, with headrests in all seating positions. The instrument cluster is center-mounted and high on the dash to enhance forward visibility. Both Yaris models provide easy-to-reach audio and climate controls; an array of storage spaces, including a center console with built-in storage; and cup holders in the front and rear. Yaris is available with a number of comfort and convenience options, as well as a selection of accessories for individualization. A convenience package standard on Yaris sport and available on the sedan and liftback; adds an AM/FM/CD player with MP3 capability and universal mini-jack port; a rear defroster; 15-inch steel wheels with full wheel covers; 60/40-split folding rear seatbacks (sedan only); and a rear wiper (liftback only). The optional power package equips all Yaris models, except for the liftback S, with power door locks, windows and mirrors; AM/FM/CD audio system with MP3 capability and audio mini-jack; rear defroster; and 15-inch steel wheels with covers.

Toyota Yaris is equipped with height-adjustable headrests and three-point seatbelts in all five seating positions; the front seatbelts integrate pretensioners and force limiters. Advanced dual-stage front air bags (SRS) for driver and passenger inflate according to collision severity, and come as standard equipment. A passenger sensor in the front seat can detect how much weight is on the seat to determine whether the air bag should inflate as well as the correct inflation power. Front seat-mounted side air bags with first- and second-row roll-sensing side curtain air bags are available as options. Also optional is the anti-lock brake system. The rear seat is equipped with lower anchors and tethers for children (Latch); and a uniform child restraint anchorage system.