What's New?
The RAV4 was completely redesigned for 2006; the new model is significantly bigger and more powerful than its predecessor. For 2007, front-seat-mounted air bags and two-row side curtain air bags, once optional, are now standard.

Overview
The Toyota RAV4 was one of the models that kicked off the mini-SUV or "cute ute" segment when it launched in 1994. The RAV4 shed a bit of its "mini" image when it was redesigned in 2006, the new version offering both a third-row bench seat that expanded seating to 7 and an optional V-6 engine—both firsts for the RAV4. Despite its larger size, the RAV4 is still the entry-level offering in Toyota's SUV/CUV lineup, sized and priced just below the Highlander. It is available in standard, Sport, and Limited models.

The new RAV4 offers buyers a 166-hp, 2.4-liter 4-cylinder engine or a surprisingly large 269-hp 3.5-liter V-6. Both engines are available exclusively with an automatic transmission—a 4-speed for the 4-cylinder and a 5-speed for the V-6—and with either front- or all-wheel drive. The 4-wheel-drive (4WD) system automatically shifts power to the rear wheels as needed to maintain traction. The RAV4 doesn’t have a low-range transfer case, but it can be locked into 4WD mode at speeds under 25 MPH. Other off-road features include Hill-start Assist Control (HAC), which prevents the RAV4 from rolling backwards on a steep incline, and Downhill Assist Control, which maintains a steady speed on steep downgrades. HAC and DAC are standard on V-6 models and 4-cylinder models equipped with the optional third-row seat.

Along with the newly-standard side and side curtain air bags, electronic stability control and anti-lock brakes are included on all RAV4 models. Other noteworthy technology in the RAV4 includes electrically-assisted power steering which improves fuel economy by eliminating the engine-driven pump. Warranty coverage on the RAV4 is 3 years/36,000 miles bumper-to-bumper, supplemented by 5-year/60,000-mile powertrain coverage.

The Competition
The Toyota RAV4 competes in the Compact Crossover Utility Vehicle (CUV) segment, which consists of 20 models. Buyers in this segment look for fuel economy, reliability, and comfort, according to the J.D. Power and Associates 2006 Avoider Study^SM and the Escaped Shopper Study.^SM

The top sellers in the segment during calendar year 2006, according to the J.D. Power and Associates Sales Report,^SM were the Honda CR-V (170,028 units sold), Ford Escape (157,395), and Toyota RAV4 (152,047). The Toyota RAV4’s 152,047 sales in 2006 represent an increase of 115.6 percent compared to the previous year. Other models offered in the Compact CUV segment include the Chrysler PT Cruiser, Chevrolet Equinox and HHR, Saturn Vue, and Scion xB. Joining the segment in 2007 are two Jeep models—the Compass and Patriot—and the Kia Rondo.