It does sound very suspicious... I am in Vancouver as well, and a family member has a 2003 Corolla CE, with only 30,000km on it... absolutely great car, and it does hold its value quite well.
Having said that, if i was in the market for a used car, I would not consider a Corolla, as they tend demand rather high prices. Further, their ability to take quite a bit of abuse leads to sometimes less than diligent upkeep... I heard this rather scary tale from a cabbie (driving a current model Corolla) who has put on 50,000 in the last year WITHOUT a single oil change! He assures me that with a repaint in a couple of years, the car will still sell for a good price...
With that in mind, it may make sense to just buy a new one, the base model CE is approx $16000 before taxes.