Luxury SUVs are stealing the spotlight in the U.S., slowly taking over from sedans as the go-to ride for drivers who want a bit more flair. The 2025 luxury car market is a rollercoaster, with some brands tanking while others are hitting record-breaking sales.
Even mainstream models are cashing in on the trend, pushing budget-friendly brands to rethink their lineups and get a slice of the premium pie.
Take the 2025 Toyota RAV4, for example—it’s quietly outselling some of the fanciest luxury SUVs out there. Starting under $30k, it’s a versatile, well-equipped ride that keeps buyers coming back year after year, even with a new generation on the way for 2026.
In order to give you the most up-to-date and accurate information possible, the data used to compile this article was sourced from Toyota and other authoritative sources, including Edmunds, the EPA, iSeeCars, J.D. Power, and TopSpeed.
Why the 2026 Toyota RAV4 Hybrid Is the Best Value SUV Yet
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The RAV4 is turning heads and taking names
In October 2025, Toyota sold a solid 39,663 RAV4s across all models—ICE, HEV, and PHEV. That pushes their total for the year to nearly 398,000 units.
Even with a new model just around the corner, the RAV4 still saw a 3.7 percent sales increase compared to last year, proving it’s holding strong.
As of 2025, the Lexus RX holds the crown as the top luxury SUV in the U.S., with nearly 90,000 units sold so far. BMW’s best-seller in the luxury SUV category is the X5, which has moved 51,870 units this year.
Meanwhile, the Cadillac Escalade, the top luxury SUV from an American brand, has sold 35,707 units to date in 2025.
It’s not surprising that a budget-friendly SUV like the RAV4 is outselling luxury models—affordable vehicles have always been more popular than their high-end counterparts. That’s why we call them “volume sellers.”
Luxury cars generally don’t hit the same high numbers, but the gap between the RAV4 and its pricier competitors is getting wider. This trend shows that more American buyers are choosing value over prestige, and it’s happening at a faster rate than ever.
A solid reputation and wallet-friendly ownership
J.D. Power gives the RAV4 a solid 80/100 for quality and reliability, which contributes to its overall score of 80/100. iSeeCars agrees, giving it an 8.7/10 reliability rating and projecting a lifespan of 13.4 years or 163,295 miles with minimal issues.
When it comes to ownership costs, Edmunds estimates you’ll spend around $34,400 over five years and 60,000 miles. That includes $4,974 for maintenance, $690 for repairs, $9,891 for depreciation, and $6,030 for fuel.
2026 Toyota RAV4 Unveiled With Bold Redesign and Significant Upgrades
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The RAV4’s well-rounded drivetrain options
While the RAV4’s drivetrain options might not match those of luxury models, it doesn’t seem to hurt its popularity. The hybrid version comes with Toyota’s 2.5-liter four-cylinder Atkinson-cycle engine, producing 176 horsepower and 163 lb-ft of torque on its own, plus a dual-motor all-wheel-drive system for extra traction.
Toyota doesn’t typically share combined torque figures for most of its hybrid models, but it does confirm the system puts out a total of 219 horsepower. The gas engine alone makes 176 horsepower, while the front electric motor adds 118 horsepower and 149 lb-ft of torque, and the rear motor contributes 54 horsepower and 89 lb-ft.
This power combination gives the RAV4 hybrid a solid 7.3-second 0-60 mph time and a top speed of 117 mph. It’s also capable of towing up to 1,750 pounds.
2025 Toyota RAV4 specs and performance
|
Powertrain |
ICE |
HEV |
|---|---|---|
|
Engine |
2.5-liter four-cylinder |
2.5-liter four-cylinder and two permanent-magnet motors |
|
Transmission |
Eight-speed automatic |
eCVT |
|
Combined horsepower |
203 hp |
219 hp |
|
Combined torque |
184 lb-ft |
163 lb-ft |
|
Drivetrain |
Front-wheel drive or all-wheel drive |
All-wheel drive integrated management |
|
0–60 mph |
8.4–8.2 seconds |
7.3 seconds |
|
Top speed |
115 mph |
117 mph |
|
Towing capacity |
1,500 pounds |
1,750 pounds |
The ICE RAV4 uses the same powertrain as the hybrid, but without the electric motors, and comes with a conventional eight-speed automatic transmission. It’s also available with front-wheel drive.
This setup puts out 203 horsepower at 6,000 rpm and 184 lb-ft of torque at 5,000 rpm. The two-wheel-drive version hits 60 mph in 8.4 seconds, while the all-wheel-drive model shaves that down to 8.2 seconds. The former tops out at 115 mph, while the latter can get up to 117 mph, with each version capable of towing 1,500 and 1,750 pounds respectively.
This Plug-in Hybrid Is the Sweet Spot Between Efficiency, Power, and Practicality
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Fuel efficiency beats luxury every time
The RAV4’s top-tier fuel efficiency is a big reason why many buyers choose it over pricier luxury alternatives, with the long-term savings being a major draw. According to the EPA, it’ll cost you around $46 to fill up the 14.5-gallon tank on the Toyota RAV4 Hybrid.
On average, you’ll spend up to $1,200 on fuel each year, but you could save up to $2,250 on gas over five years. It’ll cost about $2.03 to drive 25 miles. If you go for the Woodland Edition, your annual fuel costs increase by $100, and your five-year savings drop by $500, with the cost to drive 25 miles jumping to $2.14.
When it comes to fuel efficiency, the EPA estimates the standard Hybrid will deliver 41 mpg in the city, 38 mpg on the highway, and a combined 39 mpg, giving it a range of about 566 miles on a full tank.
The Woodland Edition, on the other hand, comes in at 38 mpg city, 35 mpg highway, and 37 mpg combined, with a slightly shorter range of 536 miles, thanks to its larger wheels and multi-terrain tires.
2025 Toyota RAV4 EPA estimates
|
Model |
RAV4 Hybrid |
Hybrid Woodland Edition |
RAV4 FWD |
RAV4 AWD LE |
RAV4 AWD |
RAV4 AWD with stop/start |
|---|---|---|---|---|---|---|
|
Fuel consumption (city/highway/combined) |
41/38/39 mpg |
38/35/37 mpg |
27/34/30 mpg |
27/34/30 mpg |
25/33/28 mpg |
27/33/29 mpg |
|
Range |
566 miles |
536 miles |
435 miles |
435 miles |
406 miles |
420 miles |
|
Five-year fuel savings |
$2,500 |
$2,000 |
$500 |
$500 |
$0 |
$250 |
|
Annual fuel cost |
$1,200 |
$1,300 |
$1,600 |
$1,600 |
$1,700 |
$1,700 |
|
Cost to drive 25 miles |
$2.03 |
$2.14 |
$2.64 |
$2.64 |
$2.83 |
$2.73 |
|
Cost to fill the tank |
$46 |
$46 |
$46 |
$46 |
$46 |
$46 |
|
Tank size |
14.5 gallons |
14.5 gallons |
14.5 gallons |
14.5 gallons |
14.5 gallons |
14.5 gallons |
The base front-wheel-drive RAV4 is the most fuel-efficient gas model, with an EPA estimate of 27 mpg in the city, 34 mpg on the highway, and 30 mpg combined, giving it a range of 435 miles on a full tank.
Over five years, you’ll save up to $500 in fuel costs, though it’ll still cost you around $1,600 to refuel each year. You’ll spend about $2.64 to drive 25 miles and $46 to fill up the tank. Interestingly, the all-wheel-drive LE model doesn’t add any extra fuel burden compared to the front-wheel-drive version.
If you go for the all-wheel-drive RAV4 without the stop-start ignition system, you can expect around 25 mpg in the city, 33 mpg on the highway, and 28 mpg combined, with an estimated range of 406 miles on a full tank. The EPA says this won’t save you anything on fuel over five years, and it’ll cost about $1,700 to keep it refueled annually. You’ll spend about $2.83 to drive 25 miles.
Opting for the stop-start system bumps fuel efficiency up to 27 mpg city, 33 mpg highway, and 29 mpg combined, with a range of 420 miles. You’ll save around $250 in fuel costs over five years, while still spending $1,700 on fuel each year and $2.73 for every 25 miles driven.
Here’s How Much A Toyota RAV4 Depreciates After 5 Years
Every vehicle depreciates, but not at the same rate. Here’s how the Toyota RAV4 holds its value over five years.
How attractive pricing is luring luxury buyers away
Toyota offers the RAV4 in five trims, starting with the $29,800 LE and moving up to the $31,310 XLE, $34,200 XLE Premium, and $38,105 Limited. Whether you go for the gas or hybrid model, the standard features are consistent across the board.
At the entry-level LE, you’ll get:
- Eight-inch touchscreen display
- Wireless Apple CarPlay and Android Auto
- Six-speaker sound system
- Toyota Safety Sense 2.5 suite
The Toyota RAV4 Hybrid LE starts at $32,850, with the Limited topping out the range at $41,155. For something a little different, Toyota offers the special Woodland trim, priced at $36,070.
2025 Toyota RAV4 trims and pricing
|
ICE |
Hybrid |
|
|---|---|---|
|
LE |
$29,800 |
$32,850 |
|
XLE |
$31,310 |
$34,360 |
|
SE |
N/A |
$35,545 |
|
Woodland Edition |
N/A |
$36,070§ |
|
XLE Premium |
$34,200 |
$37,250 |
|
XSE |
N/A |
$38,510 |
|
Limited |
$38,105 |
$41,155 |
- Base Trim Engine
-
2.5L Dynamic Force I4 ICE
- Base Trim Transmission
-
8-speed automatic
- Base Trim Drivetrain
-
Front-Wheel Drive
- Base Trim Horsepower
-
203 HP @6600 RPM
- Base Trim Torque
-
184 lb.-ft. @ 5000 RPM
- Base Trim Fuel Economy (city/highway/combined)
-
27/35/30 MPG
- Base Trim Battery Type
-
Lead acid battery
- Make
-
Toyota
- Model
-
RAV4
If you’re eyeing the XLE, it’ll cost you $34,360, while the XLE Premium bumps that up to $37,250. The XLE Premium will set you back $36,700. Keep in mind, Toyota adds a $1,450 delivery fee for all RAV4 models, whether hybrid or gas-powered.
While Toyota doesn’t offer a ton of optional extras for the RAV4, there are a few available packages for select trims.
