Thinking about buying a brand-new Toyota RAV4 Hybrid? You might be surprised to learn that a one-year-old Toyota Highlander Hybrid—a larger, more premium SUV—can cost about the same.
Even better, many used Highlanders are 2024 models, so they’re still current in design and tech. That makes the decision a bit more interesting.
So, which Toyota hybrid offers better value? A fully loaded new RAV4, or a slightly used Highlander with more space and three-row flexibility?
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Toyota has some strong contenders if you’ve got around $40,000 to spend and want an all-wheel-drive hybrid SUV. That includes two very different models that surprisingly fall within the same price range.
In the sections below, we’ll break down the key specs and features of each vehicle to see which offers better value. We’ll also highlight a few final factors to consider before you make your choice.
This is a specs-and-pricing comparison based on information accurate at the time of writing. Details may change as manufacturers update their offerings, and all models mentioned are standard hybrids, not plug-in hybrids.
RAV4 vs. Highlander: Models, Generations, and Pricing
The current, fifth-generation Toyota RAV4 debuted for the 2019 model year and enters 2025 in its seventh year on the market. For 2025, all RAV4 Hybrid models come standard with all-wheel drive.
Trim options for the RAV4 Hybrid include LE, XLE, XLE Premium, Woodland Edition, SE, XSE, and the range-topping Limited. This variety gives buyers a broad range of features and price points to choose from.
The fourth-generation Toyota Highlander launched for the 2020 model year and remains the current version. In 2023, it received a major update featuring a new gas engine, a redesigned infotainment system with a 12.3-inch touchscreen, and a relocated, more user-friendly wireless charger.
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The 2025 Toyota RAV4 Hybrid Limited starts at a base MSRP of $40,605, not including options or destination fees. It’s a top-rated hybrid SUV and one of the best-selling crossovers in the world, making it a popular and reliable choice.
When new, 2024 Toyota Highlander models started at just under $40,000. Today, lightly used XLE trims often hover around that same $40k mark, according to sources like Kelley Blue Book and Autotempest.
Many of these used Highlanders are still on their first oil change. That means you’re essentially getting a nearly new, higher-tier SUV for the price of a compact crossover.
RAV4 vs. Highlander: Size, Space, and Cargo
|
2025 RAV4 Hybrid |
2024 Highlander Hybrid |
|
|
Length |
180.9 inches |
194.9 inches |
|
Width |
73 inches |
76 inches |
|
Wheelbase |
105.9 inches |
112.2 inches |
|
Height |
67.2 inches |
68.1 inches |
|
Ground Clearance |
8.1 inches |
8 inches |
These two SUVs fall into different size categories—the RAV4 is a compact, while the Highlander is a mid-size. That size difference brings notable contrasts in space, footprint, and practicality.
If you’re dealing with tighter parking or a smaller garage, the RAV4 is easier to manage. It’s 3 inches narrower, 14 inches shorter, and 1.1 inches lower than the Highlander Hybrid.
Ground clearance is nearly identical, with both models sitting around 8 inches off the ground. The Highlander technically offers a bit less clearance, but it’s a negligible difference for most drivers.
Despite being 14 inches longer overall, the Highlander’s wheelbase is only 6.3 inches longer than the RAV4’s. This gives it a more spacious cabin without dramatically changing driving dynamics.
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The interior space tells a bigger story, mainly because one model has two rows of seating while the other offers three:
|
2025 RAV4 Hybrid (5 Seater) |
2024 Highlander Hybrid (7 – 8 Seater) |
||||||
|
1st Row |
2nd Row |
1st Row |
2nd Row |
3rd Row |
|||
|
Headroom |
37.7 inches |
39.5 inches |
41.2 inches |
39.4 inches |
36.1 inches |
||
|
Legroom |
41 inches |
37.8 inches |
42 inches |
38.7 inches |
28 inches |
||
|
Shoulder Room |
57.8 inches |
56.4 inches |
59 inches |
58.4 inches |
55 inches |
||
|
Cargo Space: Min – Max |
37.5 – 69.8 ft³ |
16 – 84.3 ft³ |
|||||
|
EPA Passenger Volume |
98.9 ft³ |
136.3 – 141.8 ft³ |
The Highlander has a slight edge in front headroom compared to the RAV4. However, it gives up a bit in rear-seat headroom, though the difference is less than an inch.
Legroom is also closely matched, with the Highlander offering about an extra inch in both the front and second rows. It’s a small gain, but one that adds to overall comfort on longer drives.
Where the Highlander really pulls ahead is in shoulder room. It gives front passengers 1.2 inches more space and second-row passengers a notable 2.3-inch advantage over the RAV4.
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The Highlander Hybrid includes a third row of seats, which the RAV4 Hybrid doesn’t offer. Still, the first and second-row dimensions are quite similar between the two.
This means that while the third row may be a bonus, overall passenger space in the first two rows is only slightly better in the Highlander. For many, that may not justify the extra size alone.
Cargo space, however, tells a different story. The Highlander delivers 29 percent more room behind the second row and 21 percent more maximum cargo volume than the RAV4 Hybrid—clear wins in practicality.
Comparing Their Hybrid Powertrains
|
2025 RAV4 Hybrid Limited |
2024 Highlander Hybrid XLE |
|
|
Engine |
2.5-liter hybrid |
2.5-liter hybrid |
|
Total Horsepower |
219 hp |
243 hp |
|
Towing |
1,750 lbs |
3,500 lbs |
|
Fuel Economy* |
41/38/39 mpg |
35/35/35 mpg |
|
Annual Fuel Cost** |
$1,200 |
$1,350 |
* City/Highway/Combined as per the EPA ** As per the EPA
Both the RAV4 and Highlander Hybrids use Toyota’s well-established hybrid system, which pairs a 2.5-liter gas engine with electric motors to boost efficiency and torque. These are standard hybrids—not plug-in models—so there’s no need to recharge them manually.
The battery recharges automatically as you drive, requiring no extra effort from the driver. It’s a seamless setup designed for everyday convenience.
When comparing these two, a few key performance differences stand out. The Highlander Hybrid makes 24 more horsepower than the RAV4 Hybrid, yet only costs about $150 more per year in fuel, according to EPA estimates.
Perhaps the biggest difference? The Highlander Hybrid can tow twice as much as the RAV4 Hybrid for the same purchase price.
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Which One Should You Pick?
Both the RAV4 Hybrid and Highlander Hybrid are mature products with proven drivetrains, reliable tech, and strong reputations for dependability and resale value. They’re safe, well-rounded choices backed by years of customer trust.
The Highlander received a major interior refresh for 2023, giving it an edge over the RAV4 in terms of screen size, cabin storage, and overall refinement. It also features Toyota’s latest infotainment system, anchored by a large, modern touchscreen.
For similar money, a lightly used Highlander Hybrid offers more space, power, and towing capability. The trade-off? A slightly higher annual fuel cost.
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Think about how your SUV will fit into your lifestyle. The Highlander Hybrid is likely the better pick for growing families, thanks to its third-row seating and double the towing capacity.
On the flip side, the smaller, more nimble RAV4 could be ideal as a second family car or for daily commuting. Its compact size and easy maneuverability are great for urban driving or student use.
Driving feel is another factor to weigh. The RAV4 has a sportier, firmer ride, while the Highlander Hybrid leans toward comfort with a softer, more relaxed driving experience.
If you’re an enthusiast, the RAV4’s sharper handling and responsiveness might appeal more. But for those prioritizing comfort and calm, the Highlander has the edge.
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Having options is always a good thing. And in this case, we’d lean toward the Highlander Hybrid.
We appreciate the slight headroom boost and how it improves outward visibility—great for taking in the scenery on long drives. The ride also feels softer and more composed over rough roads compared to the RAV4.
The Highlander Hybrid naturally encourages a more relaxed, fuel-efficient driving style. Its quiet, comfortable nature makes it easy to settle in and let the hybrid system do the work.
Sources: Toyota, EPA, Kelley Blue Book, AutoTempest
