There is a solid reason behind the roaring popularity of the Toyota RAV4 in the USA, which is still high despite the arrival of newer SUVs with time. Apart from the unquestionable reliability, which the brand Toyota is famous for, RAV4 puts its case as a complete all-rounder with a spacious and comfortable cabin, easy drivability, decently long equipment list, and fuel efficiency. No wonders the Toyota RAV4 has consistently ranked as the highest-selling SUV in the USA.

There is one more aspect for which the Toyota RAV4 gets highly preferred by a huge chunk of American buyers – its low cost of ownership compared to the other SUVs in its category. Based on five prime aspects like depreciation, insurance, maintenance, loan interest, and fuel costs, we have analyzed that the total ownership cost of a Toyota RAV4 for five years is around $26,000. Following is a complete breakdown of the total ownership costs.

Related: The Best Features Of The 2022 Toyota RAV4

Cost Of A New Toyota RAV4

2023 Toyota RAV4 Hybrid Woodland Edition in the woods side view
Toyota

Currently, the US market gets the Toyota RAV4 in twelve different variants across two versions – Standard and Full Hybrid.

The Standard version of the Toyota RAV4 comes in six variants – LE, XLE, XLE Premium, Adventure, TRD Off-road, and Limited. All these versions have a 2.5-liter four-cylinder naturally-aspirated petrol engine, which produces 203 hp of maximum power and is available with an 8-speed automatic gearbox as the standard transmission. The Standard range starts at $26,975 and tops at $35,475.

The Full Hybrid versions are available in six variants – LE, XLE, XLE Premium, SE, XSE, and Limited, all of which get the same 2.5-liter four-cylinder naturally-aspirated petrol engine with an electric motor and a battery setup. Paired to an e-CVT gearbox, this powertrain produces a combined power output of 219 hp. The prices of the Full Hybrid range vary between $29,575 and $38,075.

For our analysis mentioned below, we have taken the range-topping variant of the Standard range of Toyota RAV4. Priced at $35,475, it is one of the highest-selling variants of the SUV.

Related: Come On An Adventure With Toyota And Their New RAV4 Hybrid Woodland Edition

The Depreciation Hit You Take For A Rav4

Toyota RAV4 front three quarter parked beside a beach
via Toyota

The actual difference between the price of a brand new vehicle and the price of the same car after a fixed duration is called depreciation. Like every other vehicle, the Toyota RAV4 also depreciates with time, albeit at a comparatively lower pace. The depreciation costs depend on several factors like model year, mileage, and vehicle condition. Still, after five years, the value of a new Toyota RAV4 Limited depreciates by around $7,378 on average. It means that compared to a new Toyota RAV4, which is available at $35,475, the actual residual value of the vehicle after five years will fall to $28,097.

How Much It Costs To Insure A Rav4

Toyota RAV4 front three quarter in motion
via Toyota

On average, you will require $1,438 as insurance renewal costs annually, thus totaling $7,190 if you take five years of ownership into account. The insurance renewal costs of all the vehicles, including the Toyota RAV4, depend on certain factors like good driving record, vehicle condition, and the state of claims (if any). At the same time, you should be aware that the insurance costs vary significantly among different insurance providers for the same coverage policy. To get the best deal, it is always better to compare the quotes of multiple insurance providers before settling down for one particular company.

Maintenance And Repair Costs For A Toyota Rav4

Toyota RAV4 side profile parked
via Toyota

If you factor in the regular periodic maintenance costs for a Toyota RAV4 over five years, it will come to around $1,503 for five years. These maintenance costs include wear and tear of components in use, usual maintenance tasks like engine oil replacement, and even some unexpected repairs. These costs do not include replacing a faulty part under the warranty period. These costs can be higher or lesser than the value mentioned above, depending on factors like the roads on which you drive your vehicle and the way in which you take care of your vehicle.

The Costs Of Financing A Rav4

Toyota RAV4 rear three quarter parked beside a beach
via Toyota

If you are availing of a loan to purchase the Toyota RAV4 with a time duration of 72 months, down payment of 20 percent, and APR of 4.75 percent, the average cost of finance amount at the end of tenure totals $4,114. You can further decrease these financing costs by increasing your down payment or by reducing the time duration of the loan.

Fuel Costs Of Owning A Rav4

Toyota RAV4 front and rear three quarter parked on a rocky surface
via Toyota 

On average, the Toyota RAV4 returns a fuel economy of around 31 MPG if you drive 55 percent in the city and 45 percent on the highway. If you have a driving cycle of 12,000 miles annually, it accounts for $1,182 worth of fuel bills a year. SO, for five years, the fuel bills can go up to $5,190. The fuel prices can vary from time to time, but in most conditions, they only go up. In addition, the fuel costs also depend on a couple of other factors like driving behavior and the engine condition.

Based on all these aspects, you can make out that the Toyota RAV4 Limited will cost you around $25,375 over the actual amount of the SUV ($35,475).