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Toyota RAV4 on the road.

We’re behind the wheel of our Toyota RAV4 long-term test vehicle and just looked at the instrument cluster’s mpg reading. It’s showing 43 mpg toward the end of our 150 mile cruise on the 101 freeway along California’s Central Coast. There was no traffic to speak of, so we had kept our ride at a fairly steady state around 65-70 mph, reasonable for this stretch of California highway though far short of the much faster speeds and stop-and-start driving experienced in Southern California.

The surprise? This welcome fuel efficiency was achieved without hybrid or plug-in power. We were piloting a Toyota RAV4 XLE crossover powered by a 2.5-liter four-cylinder that, at the time we started our adventure, came with a manufacturer’s suggested price of $29,085, topping out at $33,987 after options. Adding to the surprise is that EPA rates this RAV4 at 34 mpg on the highway and 27 mpg in the city. We were beating that by a long shot, not through crazy hypermiling techniques but simply by easy driving without unnecessary bursts of acceleration or driving at higher speeds.

Instrument panel showing high fuel efficiency.

Toyota RAV4 Efficiency

Look, reality check: While that kind of better-than-EPA fuel efficiency can’t be expected as a matter of course – because, let’s face it, we aren’t always driving traffic-free and there are times when we want to go fast – it is possible, as our experience showed. There is a lesson here for anyone who wants to optimize efficiency and lessen their carbon emissions while driving conventional vehicles. High fuel efficiency is out there for those who actively seek it.

During our drives, the RAV4 consistently delivered all the power we needed, seamlessly delivered to pavement through an 8-speed electronically controlled automatic transmission. Riding on independent MacPherson strut suspension up front with multi-link suspension at the rear, we found ride and handling on the money, as we would expect from Toyota. Along the way we have also appreciated filling up with regular 87 octane gas rather than the premium that some models require, which costs up to 35 to 40 cents per gallon more than regular grade in our area.

Interior of Toyota RAV4 crossover SUV.

A Comfortable Cabin

Inside this RAV4 is a well-appointed interior with an 8 inch multimedia touch display offering Apple CarPlay and Android Auto connectivity. Nicely bolstered seats provide plenty of comfort as the miles drift by. While our RAV4 came with cloth seats and we prefer leather (or these days, artificial leather), Toyota’s SofTex synthetic leather seating only comes with the uplevel XLE Premium trim at nearly $3,000 more, so cloth it is. Hauling life’s usual stuff is well handled with 37 cubic feet of storage behind the rear seat and 70 cubic feet total with the rear seat folded.

Cloth seats aside, our only complaint, and it’s a mild one, is the RAV4’s stop-start system sometimes engages a bit too abruptly from a stop, something we have experienced in other models with stop-start functionality as well. We chalk that up to the quest for maximum efficiency as the engine is shut down after a pause when stopped, then automatically started again when the brake pedal is released.

Dependable and Affordable

After six months in our long-term test fleet and some 5,000 miles on the odometer, we can say this: Toyota’s RAV4 is a rock-solid choice for those looking to drive a conventionally powered small SUV at a price a great many can afford. We still find ourselves beating EPA mpg estimates by at least a few mpg if we’re focused, but most of the time we are in the range of the 27 to 34 mpg efficiency expected of this model, depending on whether we’re doing city or highway driving. We’re pretty enthused with our daily drives in this RAV4 test car and looking forward to sharing our continuing  experiences in the months ahead.

Green Car Time Machine - archive articles from Green Car Journal.

Toyota’s path to producing all-electric vehicles has been a long one, highlighted by the RAV4 EV model it fielded to fleets in response to the California Air Resources Board’s Zero Emission Mandate in the 1990s. Green Car Journal editors test drove variations of this small electric SUV during those early years of the modern electric vehicle’s development. We were impressed by Toyota’s exploration of the potential market for battery EVs at the time. To lend perspective on this automaker’s electric vehicle development, we present this article on the Toyota RAV4 EV pulled from our archives, just as it ran in our January 2002 issue.

Excerpted from January 2002 issue: Many thought the RAV4 EV – the electrically motivated compact sport utility vehicle from Toyota – was gone, the victim of a completed agreement with the State of California in the late 1990s. But it’s not. Toyota Motor Sales USA is bringing the sporty little EV back, this time making it available to retail customers in California, not just fleets. Sales are slated to begin in February 2002.

Rear view of Toyota RAV4 EV.

Fleet Service First

RAV4 EVs made their mark during the late-1990s as hundreds of these were leased and placed in fleet service. Some 700 of the 900 RAV4 EVs were in use in California. That occurred because of requirements imposed on automakers, including Toyota, by the California Air Resources Board, the result of the Memoranda of Agreement that accompanied postponement of the 1998 Zero Emission Vehicle Mandate.

That was then, this is now. No mandate exists this year, although all automakers are feeling the pressure of the impending 2003 ZEV rule that will require major automakers to sell large numbers of EVs to meet a 2 percent threshold. In retrospect, maybe Toyota’s move to bring the RAV4 EV back isn’t surprising after all.

RAV4 EV Powertrain

The RAV4 EV is powered by a maintenance-free, permanent magnet motor that produces 67 horsepower (50kW) and 140 lb.-ft. torque, providing an electronically governed top speed of 79 mph. Front wheel drive is via a single speed transaxle, with reverse provided by backward motor rotation.

A sealed, 288 volt nickel-metal-hydride (NiMH) battery pack provides energy to the motor. This pack, comprised of 24 12-volt modules, is located beneath the SUV’s floor to minimize intrusion into the passenger compartment and optimize the vehicle’s center of gravity. Charging this pack requires five to six hours.

Driving the Toyota RAV4 EV

Stopping power is supplied by an anti-lock and regenerative braking system that utilizes solid aluminum front discs and steel rear drums. The regenerative system returns energy to the batteries whenever the RAV4 EV is coasting or braking.

Time spent behind the wheel of the RAV4 EV has shown this vehicle to be fun, dependable, and capable of fulfilling most daily missions with ease, so long as they fit within the vehicle’s range capabilities. Since an electric motor produces peak torque immediately, the RAV4 EV offers good off-the-line acceleration but a rather modest 0-60 mph elapsed time of about 18 seconds. Driving range is between 80 to 100 miles per charge.

Efficient Heat Pump HVAC

Seating for five and ample space for cargo is provided in this five-door compact SUV. The interior offers the high level of function and comfort expected of a Toyota product, featuring such standard amenities as split fold-down rear seats, heated driver and front-passenger seats, adjustable-height front seatbelt anchors, and dual front airbags. Convenience is well accommodated by a heated windshield, rear-window wiper and defogger, and power door mirrors, windows, and door locks. An AM/FM stereo system with CD provides the needed tunes. Rear seat heaters and traction control are available options for cold climate use.

One of the advantages of electric vehicles is their use of heat-pump type air conditioning, an innovation that allows climate control functions to operate while a vehicle is turned off and parked. RAV4 EV drivers have the ability to set a timer and adjust their vehicle’s pre-heat or pre-cool function so the SUV’s interior is at a desired comfort level regardless of outside temperatures.

RAV4 EV Priced at $42,000

Toyota says the RAV4 EV will have a rather lofty suggested retail price of $42,000, although a $9,000 California Air Resources Board incentive and $3,000 federal tax credit brings the price of entry down to $30,000. This includes an in-home charger. Three introductory lease options will be offered that also include the use of the charger.

Every major metro market in California will soon find a participating RAV4 EV dealer. While initial sales are aimed exclusively in California due to Toyota’s need to address this state’s 2003 ZEV mandate, success here would certainly find the RAV4 EV making its way to other markets soon enough, starting with those poised to follow California’s lead by adopting the state’s ZEV requirements.

Toyota aims to make it easy for buyers to connect with their new electric vehicle. Like the Prius gas/electric hybrid, customers will have the ability to order the RAV4 EV online and take delivery through a participating dealer, as is the case with the Prius currently.

Lexus NX Hybrid driving on road.

With few exceptions, it’s true that gas-electric hybrids cost more than conventional internal combustion vehicles. That makes many wonder if buying one of these high efficiency vehicles is worth the extra cost and, importantly, if the difference can be offset over time – the hybrid payoff – from buying less fuel.

While plenty of generalizations have been made about this in recent years, the concept of payback for a hybrid’s incremental cost involves many variables and can only be answered on a case-by-case basis. Green Car Journal’s research shows that a realistic answer is not so simple, and boiling this down into a simple chart is misleading…so we’re not going to do that. Instead, we’re going to do this the right way and help you come up with a valid payback factor for the hybrid you may be considering. 

Hybrid Payoff a Moving Target

You need to know that crunching the numbers involves some elements that are moving targets. For example, higher gasoline prices work to shorten the number of miles and time needed for payback. At the same time, high gas prices are also finding many drivers putting fewer miles on their vehicles in order to save money. Fewer miles can lead to a longer payback. Plus, let us not forget that the retail price of hybrids – or really any cars these days – is also in play. Many dealers are tacking on a serious premium – sometimes thousands of dollars – onto the suggested retail price of any new vehicle because of today’s high demand and supply chain restraints.

Still, the basic equation for determining a hybrid’s breakeven point is straightforward. It begins by identifying the combined city/highway mpg number for a hybrid and that of its closest conventional counterpart. These mpg figures can be found online at fueleconomy.gov. Once armed with these numbers you can calculate each vehicle’s operating cost per mile based on current fuel prices. 

Toyota RAV4 Hybrid Example

Toyota RAV4 driving on highway.

To come up with a hybrid payoff calculation, simply divide the price of fuel (such as $5.00 per gallon) by a vehicle’s combined mpg. As an illustration, a Toyota RAV4 compact SUV with a combined rating of 30 mpg would pencil out as follows, assuming the above gas cost: $5.00 ÷ 30 mpg = $0.167, (16.7 cents) per mile operating cost. If a RAV4 Hybrid with a combined average of 40 mpg is substituted, that number comes down to $0.125 (12.5 cents) per mile. So, the hybrid variant would cost $.042  (4.2 cents) less for each mile driven.

A wild card here is the type of driving you’ll be doing on a daily basis. Conventionally powered models can get considerably higher gas mileage in highway driving than in the city. On the other hand, hybrids get better city mpg than on the highway because hybrid electric power offers the biggest efficiency bump during lower speed, stop-and-go city driving. Simply, a hybrid’s electric motor and battery are doing more of the work under these driving conditions.

Highway vs. City Driving

Vehicle display showing hybrid operation.

Placing this in context, a standard RAV4 nets 27 city mpg with the hybrid coming in at 41 city mpg, a significant difference of 14 mpg. On the highway, the difference in mpg is much less. The conventional RAV4 is estimated at 35 mpg on the highway and the hybrid at 38 mpg, a mere difference of 3 mpg. Thus, if you’re doing mostly highway commuting miles then the cost differential between standard and hybrid models may not be worth the additional cost. That is, if price is your primary motivator and not environmental impact. We’ll stick with EPA’s combined city/highway mpg figures to keep things simple.

Next, determine the manufacturer’s suggested retail price (MSRP) for the models you’re comparing. The RAV4 has an MSRP of $26,975 while the RAV4 Hybrid is $29,575. To find the projected mileage to a breakeven point – where the increased fuel efficiency offsets the extra cost of a hybrid – start by calculating the difference in price between the hybrid model and an identical conventionally powered model.

Beyond the Basics

Hybrid payoff comes from an efficient powerplant.

If all this sounds simple, rest assured it’s not. Finding direct hybrid/gasoline model comparisons can be tricky since some features that come standard on hybrid models may only come as additional cost options on their gasoline powered counterparts. Auto manufacturers often sweeten the deal on hybrids with additional content to soften a hybrid’s higher price. These extra features cost the manufacturer much less than the added retail value they bring to the consumer, so this content serves to take some of the sting out of the additional money being paid for more expensive hybrid technology. 

The challenge in identifying a direct hybrid comparison is illustrated by the Toyota RAV4. Exploring the various engine and trim levels available for the non-hybrid model shows that none offer the exact mix of options and components as the hybrid model.

Additional Hybrid Payoff Variables

High efficiency delivers a hybrid payoff over time.

Still other factors cloud the issue. Beyond the typical daily use mentioned – mostly city driving versus highway commuting – driving habits can influence the payback equation. If you drive conservatively with fuel economy in mind, fuel efficiency can sometimes vary by as much as 5 mpg either way, regardless of whether your vehicle has a conventional or hybrid powerplant. And remember our mention of dealers currently adding premium pricing? A check at our local Toyota dealer showed $3,000 being added to the base cost of a standard RAV4 and $5,000 to the base cost of a RAV4 Hybrid. That, of course, skews the math for a payback analysis. Again, to keep things straightforward, we’re using the manufacturer’s suggested retail price for these two models without markup. That said, the hybrid payoff calculation can be easily adjusted to reflect the actual sales cost of the conventional and hybrid models you’re considering in real time.

So here’s the math: The differential between the MSRP for the conventional and hybrid RAV4 models is $2,600. At a savings of $.042 (4.2 cents) per mile, this differential cost would be recaptured in some 61,904 miles of driving the RAV4 Hybrid. How long will that take? Again, there are variables. But according to the Federal Highway Administration, figuring the national average of 14,000 miles yearly, this means the payoff would arrive in just under 4 1/2 years (61,904 miles ÷ 14,000 miles = 4.42 years).

How Long Will It Take?

High mpg means a quicker hybrid payoff.

Keep in mind that the actual length of time to reach this payoff point may be influenced by the state in which you live, lifestyle, your work/transportation circumstances, and the proliferation of public transportation options. As an example, wide-open states like Wyoming find drivers traveling the most annual miles, at an average of just over 24,000 miles yearly. Other states like New York and Rhode Island see drivers behind the wheel far less, at about 10,000 miles annually, more or less. In the case of the former, the hybrid payoff could arrive in under 3 years. In the latter case, payoff would take just over 6 years.

A major consideration when shopping for a new hybrid is the length of time you plan to keep it. If you’re a short-term buyer, then the math to breakeven can be harder to achieve. The big variable here is the resale or residual value when you sell the car or, if a lease, when it’s time to turn it in. A hybrid may well retain much of the value of the premium you pay due to high demand, particularly if you sell it or trade it in after only a few years. That’s because of today’s significantly higher value for used cars, a reflection of the high demand/low inventory automotive market these days. This could work in your favor even if you lease a hybrid, since a high residual value often means you can buy your vehicle at end-of-lease rather than just turn it in. Then you can sell it, or trade it in, at a profit. A high value at the end of your purchase or lease term can effectively reduce the time or miles to hit breakeven. 

Battery Replacement Cost

Hybrid electric vehicle battery pack.

We’re not factoring in the eventual cost of a hybrid’s battery replacement because our focus is on acquiring a new hybrid model. Frankly, most buyers aren’t likely to keep their new hybrid long enough for battery replacement to be an issue. Manufacturers offer a federally mandated minimum 8 year/100,000 mile battery warranty for their hybrids so replacement in a new hybrid model is expected to be quite a ways down the road. Of course, the case is different for those buying a used hybrid because battery packs will eventually need to be replaced, at a likely cost of thousands of dollars, depending on model.

When will a hybrid pay for itself? We like to think the day you drive the vehicle off the lot. In hard numbers using our straightforward formula, though, you can figure it out yourself and come up with an approximation that fits your particular circumstances.

Being an adopter of environmentally positive technology, reducing oil dependency, and creating less pollution and greenhouse gas emissions has its own rewards. The substantial savings realized at the pump every time a new hybrid is filled up provides real and immediate financial gain. All things considered, the answer to those questioning whether a hybrid will pay off seems pretty clear. 

It’s no secret why the RAV4 is such a global hit. Beyond its obvious style, this is a model that carries a lot of gear, gets excellent fuel economy, and exhibits the traditional high standards for fit and finish found with Toyota products. What’s not to like? Toyota's latest variation, the RAV4 Prime, brings a plug-in hybrid variant to the model that adds to its appeal with 42 miles of all-electric driving range and 600 miles of total range.

RAV4 Prime is powered by the automaker’s 177 horsepower, four-cylinder DOHC engine and a pair of electric motors, one at the front and another at the rear, for on-demand four-wheel drive. Total combined power is a stunning 302 horsepower, which Toyota points out makes it the second-fastest car in its lineup behind the marque’s Supra sports car.

Available in two models, SE and XSE, RAV4 Prime combines lessons learned with Toyota’s other hybrid success stories like the groundbreaking Prius. While many competitors have focused on moving toward all electric power, Toyota has opted to focus on refining hybrid technology to motivate its electrified models. The RAV4 Prime presents an excellent example: Simply, it’s a popular and appealing plug-in crossover SUV offering on- and off-road capability with exceptional drivability, handling, and performance.

There’s a wealth of technology at work beneath the skin in the RAV4 Prime that makes it not only powerful, but exceptionally functional and efficient. Its 18.1 kWh battery is positioned beneath the floor, so it doesn’t impact interior and cargo space. Beyond its truly usable all-electric driving range, the RAV4 also delivers a 94 MPGe rating while operating on battery power. Recharging the battery is handled via a 240-volt home or public charger in about 4 ½ hours, or in about 12 hours when plugging into a conventional 120-volt AC outlet. When faster 6.6 kW charging is available, the RAV4 Prime can charge up in about 2 ½ hours.

Inside, driver and passengers enjoy heated and cooled leather seats, Apple CarPlay/Android Auto, JBL audio, and a handy conductive phone charging pad. The RAV4 Prime also comes will all the advanced safety and driver assist systems desired these days including Toyota's Safety Sense 2.0, which includes pre-collision with pedestrian detection, dynamic radar cruise control, lane departure alert with steering assist, lane tracing assist, and road sign assist. Also available is front and rear parking assist with automated braking, and rear cross traffic braking.

On the outside, the Prime edition features special badging and 19-inch alloy wheels, the only indications that call out this new and advanced version of the RAV4. Cost of entry for the RAV4 Prime is $38,100.

Toyota RAV4 Hybrid driving off-road.

The popular Toyota RAV4 was fully-redesigned this model year to meet the requirements of today's ever-expanding SUV market. Now in its 5th generation, the 2019 RAV4 is built on the Toyota New Global Architecture (TNGA-K) platform and engineered to be more efficient. Both conventionally-powered and hybrid versions of the RAV4 are offered, with blue accents on the Toyota logo and hybrid badges the only visual cues that set the RAV4 Hybrid apart from its non-hybrid counterpart.

Power in the hybrid is delivered by Toyota’s Hybrid System II, which in this model uses a 2.5-liter, four-cylinder Atkinson cycle engine producing 176 horsepower and 163 lb-ft torque. The system’s two electric motors deliver 118 horsepower and 149 lb-ft torque to the front wheels, with 54 horsepower and 89 lb-ft torque to the rear wheels. Combined hybrid system output is 219 horsepower. All-wheel drive is a standard feature on the hybrid, and the RAV4 Hybrid is very capable off-roading as we proved during our time driving off-road trails and in challenging conditions.

Toyota RAV4 hybrid engine.

RAV4 Hybrid Driving Modes

The RAV4 Hybrid’s electronically-controlled, continuously variable transmission (ECVT) comes with sequential shift modes. Sport mode changes throttle mapping and the way the transmission operates for a more responsive feel. An Eco mode optimizes fuel economy. EV mode provides an extremely limited all-electric range using light throttle.

The hybrid’s nickel-metal hydride battery pack is located beneath the rear seat so interior space is not compromised. In fact, there is a bit more cargo room compared to the previous generation RAV4 since the battery pack is more compact. An 8.0-inch touchscreen displays the hybrid powertrain’s battery activity.

Toyota RAV4 Hybrid display.

High-Tech Electronics

New to the 2019 RAV4 HV models, Predictive Efficient Drive essentially reads the road and learns driver patterns to help optimize hybrid battery charging and discharging operations, based on actual driving conditions. The system accumulates data as the vehicle is driven and ‘remembers’ features such as hills and stoplights, for example, and adjusts hybrid powertrain operation to maximize efficiency.

The 2019 RAV4 Hybrid is equipped with the second generation of Toyota Safety Sense (TSS 2.0), which includes a Pre-Collision System with Pedestrian Detection, Full-Speed Range Dynamic Radar Cruise Control, Lane Departure Alert with Steering Assist, Automatic High Beam, Lane Tracing Assist, and Road Sign Assist. Blind Spot Monitor with Rear Cross Traffic Alert and Rear Cross Traffic Braking are standard on XLE grade and above, and optional for the LE. Limited grade adds standard Intelligent Clearance Sonar, which is available on XLE and above.

RAV4 Hybrid driving rough off-road trail.

RAV4 Hybrid Efficiency

Other available safety technologies include a panoramic backup camera with customizable dynamic grid lines. The Limited grade adds a Bird’s Eye View Camera with perimeter scan, overhead 360-degree view, and curb view. Every model is equipped with Entune 3.0 multimedia, including Wi-Fi Connect powered by Verizon, Amazon Alexa, Google Assistant capability, and Apple CarPlay compatibility.

The RAV4 Hybrid achieves an admirable 41 mpg in the city and 38 mpg on the open road, at an entry price of $27,700.

Interior of Toyota RAV4 Hybrid.