Luxury SUVs have been all the rage in the U.S. as they have steadily replaced the luxury sedan as the new standard. The luxury car market has been experiencing an odd series of trends in 2025, with some brands suffering from exponential sales declines, while others are breaking new sales records. The rise in demand for luxury cars has prompted a lot of conventional budget brands to re-strategize their catalogs to appeal to the rising demand for more premium cars.
In doing so, SUVs like the Toyota RAV4 have been able to capitalize on the market, resulting in highly impressive sales performances that vastly outsell some of the most competitive luxury products available on the new car market. With a starting price of less than $30,000, the 2025 Toyota RAV4 makes for an exceptional deal without compromising on its overall versatility and comprehensive standard features list. Despite an all-new generation Toyota RAV4 being due for the 2026 model year, the Japanese brand is still able to sell its most popular product in massive numbers.
The RAV4 Is A Force To Be Reckoned With
For October 2025, Toyota confirms to have sold 39,663 individual copies of the Toyota RAV4, including the ICE, HEV, and PHEV model lines. This brings its tally for the year up to 397,797 copies. Despite a new model being introduced fairly soon, Toyota was still able to achieve a 3.7 percent year-on-year sales increase for the first three quarters of 2025.
For context, the most popular luxury SUV in the U.S. is currently the Lexus RX, which the brand confirms has sold 89,999 individual copies since the beginning of the year. BMW’s most popular luxury SUV is the X5, of which the German brand has sold 51,870 copies this year so far. The Cadillac Escalade is the best-selling luxury SUV from an American brand, selling just 35,707 individual copies thus far in 2025.
Naturally, we do have to point out how expected it is for a budget SUV to outsell luxury options, as competitively priced vehicles have always been vastly more popular than those that cater to upper-class consumers. This is why the industry titles these as volume sellers. Luxury cars typically never sell in high numbers by comparison, but the gap between the RAV4 and its more premium counterparts appears to be gradually growing, highlighting how more American consumers are prioritizing value over prestige at an increasing rate.
An Appealing Reputation And Long-Term Costs
J.D. Power‘s valuation of the RAV4 consists of a reasonably impressive 80/100 quality and reliability rating, resulting in an 80/100 overall score. iSeeCars backs this with an 8.7/10 reliability score, citing that it will benefit from a 13.4-year lifespan and cover 163,295 miles without any reliability issues. According to Edmunds, you can expect to spend $34,400 on a Toyota RAV4 ownership experience over the course of five years and 60,000 miles. $4,974 accounts for maintenance, $690 for repairs, $9,891 for depreciation, and $6,030 for fuel.
The Toyota RAV4’s Rich Cousin Justifies Every Penny Of Its Lexus Badge
Discover why this attractive compact SUV is dominating the luxury market.
The RAV4’s Balanced Drivetrain Options
The Toyota RAV4 doesn’t have drivetrain options that match the aforementioned luxury options, but this doesn’t seem to hurt its overall popularity. The hybrid derivative features the brand’s naturally aspirated 2.5-liter four-cylinder Atkinson-cycle engine, which generates 176 horsepower and 163 pound-feet of torque without any electrical assistance, with a dual-motor setup for the all-wheel-drive system.
Toyota doesn’t disclose combined torque figures for most of its hybridized products, but confirms that the system generates a combined 219 horsepower output. The ICE produces 176 horsepower, while the front electric motor generates 118 horsepower and 149 pound-feet. The rear motor produces 54 horsepower and 89 pound-feet of torque. The result is a fairly respectable 7.3-second 0-60 MPH time and 117 MPH top speed. This model tows up to 1,750 pounds.
2025 Toyota RAV4 Hybrid 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 @ 6,000 RPM | 219 HP |
| Combined Torque | 184 LB-FT @ 5,000 RPM | 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 features the same powertrain, sans the electric motors, resulting in it employing a conventional eight-speed automatic transmission. It’s also available with a front-wheel-drive system. The system produces 203 horsepower at 6,000 RPM and 184 pound-feet of torque at 5,000 RPM. Selecting the two-wheel-drive model gets you from zero to 60 MPH in 8.4 seconds, which comes down to 8.2 seconds if you select the all-wheel-drive system. Both drivetrains are limited to a 115 MPH top speed and 1,500-pound towing capacity.
This version of the RAV4 sips fuel like an economy car and yet still delivers surprisingly good performance, but that’s not all. The steering is pleasantly quick for an agile feel, and the ride quality is excellent.
– Craig Cole, TopSpeed Journalist
The Toyota RAV4 Hybrid Is Packed With Features Customers Want
The new RAV4 looks great inside and out, but its new software-defined features help it stand out in a sea of same-same crossover SUVs.
Low Fuel Consumption Trumps Luxury
The RAV4’s class-leading fuel consumption is another reason why consumers are willing to consider it over a more luxurious option, as the long-term savings benefits prove to be highly appealing. According to the EPA, the Toyota RAV4 Hybrid will cost you $46 to refuel the 14.5-gallon tank. It also estimates that you’ll spend up to $1,200 on fuel every year and that you’ll get to save up to $2,250 on gasoline every five years. It will cost approximately $2.03 to drive over 25 miles. Opting for the Woodland Edition increases your annual fuel cost by $100 and decreases your five-year savings by $500. On average, this model will cost you $2.14 to drive 25 miles.
Where efficiency is concerned, the EPA estimates that the standard Hybrid will return a 41/38/39 MPG fuel consumption on the city/highway/combined cycle and return a 566-mile range on a full tank of gasoline. The Woodland returns a 38/35/37 MPG result with a slightly less preferable 536-mile range due 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 efficient ICE mode, returning a 27/34/30 MPG consumption estimate and a 435-mile range figure. This model saves you up to $500 in fuel costs over five years and will cost you $1,600 to refuel every year. You can also expect to spend $2.64 to drive 25 miles and $46 to fill up the tank. Interestingly, the LE with all-wheel drive doesn’t become any heavier on fuel.
If you select the RAV4 all-wheel-drive without a stop-start ignition system, you can expect an estimated 25/33/28 MPG consumption average and a 406-mile range claim. The EPA also estimates that this won’t save you anything on fuel over five years and will cost $1,700 to keep refueled every year. This model will cost $2.83 to drive 25 miles. Adding stop-start improves the consumption to 27/33/29 MPG and increases the range to 420 miles. You’ll also get to save $250 in fuel costs over five years while spending $1,700 on fuel every year and $2.73 to drive 25 miles.
Here’s Everything You Need To Know About The New 2026 Toyota RAV4
The new-generation RAV4 introduces a host of exciting changes and revisions.
Attractive Pricing Steers Luxury Buyers Away
Toyota only sells the RAV4 range in five different trims, which include the $29,800 LE, $31,310 XLE, $34,200 XLE Premium, and $38,105 Limited. When it comes to standard features, you won’t notice any differences between the ICE and HEV ranges for the sake of maintaining consistency throughout the catalog. At the entry level, standard features include:
- 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, while the Limited sits at the top of the range at $41,155. Toyota also makes the RAV4 Hybrid range a bit more diverse by including the special Woodland trim, which costs $36,070.
2025 Toyota RAV4 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 |
If you prefer the XLE, this will cost you $34,360, while the XLE Premium will have you increasing your budget to $37,250. The XLE Premium will have you increasing your budget to $36,700. Toyota charges a $1,450 delivery fee for all RAV4 units, both hybrids and ICEs. Toyota doesn’t offer many optional extras for the RAV4 range, but there are some available packages for select trims.
Sources: The EPA, Edmunds, iSeeCars, and J.D. Power