In the mid-1990s, the Toyota brain trust took a close look at the SUV market and determined that not everybody liked the idea of piloting a three-ton land yacht in order to take advantage of the "U" in SUV. File drawers full of focus group questionnaires pointed toward a vehicle that combined the advantages of a sport-utility -- great visibility, sizable cargo capacity, all-weather capability -- with the manageable size and drivability of a car. With that in mind, Toyota's designers looked past their bulky truck frames and gas-guzzling engines and came up with a car-based SUV that merged trucklike utility with carlike maneuverability.
Introduced in 1996, the RAV4 (Recreational Active Vehicle -- four-wheel drive) combined sporty good looks, a convenient size and an economical engine into an attractive and affordable package. It was an instant hit, and as the first example of a car-based sport-utility, the RAV4 enjoyed phenomenal sales that brought with them an onslaught of new competitors hoping to cash in on the newfound niche. Vehicles like the Honda CR-V and Suzuki Grand Vitara soon hit the market sporting bigger engines and more refined interiors, promptly shuffling the aging RAV4 toward the bottom of the category it had single-handedly created. Despite a dose of additional power in 1999, the RAV was getting left behind, and with more competition on the way, Toyota knew a complete redesign was in order to keep its ground-breaking sport-utility at the top of its game.
This led to the current-generation RAV4, introduced for 2001. It has a refined look thanks to sharply upswept headlights and crisp lines that stretch the length of the vehicle. Squint hard enough and Toyota's latest mini-ute could even pass for a poor man's BMW X5, sans the neck-snapping V8 of course. Unlike some other SUVs, the RAV4 can't be ordered with a V6. Until last year, the mini-ute's weak, buzzy 2.0-liter, four-cylinder engine was a notable disadvantage next the Honda CR-V's larger, more potent 2.4-liter four-cylinder and the Ford Escape's 200-horsepower V6. Toyota responded by installing a larger 2.4-liter engine under the hood that produces 161 hp and 165 pound-feet of torque.
Our other main complaint about the RAV4 was its short standard features list that forced buyers to pay extra for basics like air conditioning, cruise and power windows and locks. Now you'll find all of these on the standard equipment list, along with ABS and stability control. Meanwhile, front side-impact airbags and full-length head curtain airbags are on the options list. With these upgrades and freshened styling that's slightly less toylike, this fun-to-drive mini-ute makes great sense as a durable urban runabout and commuter vehicle -- which is just what most people need most of the time.