SOURCE: Rear seat won't fold down (60 part of 60/40 seat)
I had the same problem on my '03. The seats would not fold down using the latch release as I had always done. So I tried a combination of pulling up on the side latch AND the top latch and the seat folded down. It really doesn't FIX the problem but circumvents offending defective part. I will use this method until it doesn't work then I might shell out the $$$$$ to the dealer.
SOURCE: how to fold down back seat
There should be a loop between the seat and backrest, pull that and the seat will pull toward the front seats. After that, pull the lever located at the outside of the backrest. This lever is on the outside of the seat by the door-side of the seat. Pull that up and allow the backrest will fold down and the headrest will pivot back and your seat is folded down.
SOURCE: Fold down rear seats
THE SEAT RELEASES ARE IN THE TRUNK IN THE AREA WHERE THE SPEAKERS ARE NEAR THE EDGE OF THE TRUNK OPENING.
SOURCE: 2003 Toyota Corolla LE back seat fold down? how?!
Open the back trunk, look near the top of the trunk, and pull the two black levers. They have a seat folding down symbol. That will release the locks to fold the back seat down.
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