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As for winter driving in a tercel.... I can say they can be some of the BEST cars out there.
However you need to go get a good set of ice/snow tires in the winter, studded are better too. I have a 91 tercel (same thing but pre-face lift) Has the 5 speed. I used it for pizza delivery for two years or so, and now only use it for rallycross... it can keep up with the fancy AWD subaru turbos on the deep mud and snow/ice. Little bit of practice and some PROPER winter tires, not all seasons, you can go anywhere. Funilly, 155 wide tires are better in deep snow and mud, as they dig down to the actual traction surface easier than a wider tire will, like hydroplaning on jello.
I got good economy out of the car when I drove it day to day, but didnt track the economy back then too closely.
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