2021 Toyota RAV4 Vs Highlander: Which SUV Depreciated Faster?
The Toyota RAV4 and Highlander are among the Japanese auto giant's bestselling crossover SUVs in America. Toyota sold more than 407,739 RAV4s in 2021, and that's despite the model having just a few updates after debuting as a fifth-gen variant in 2019. Meanwhile, more than 264,100 Highlanders reached American homes in the same period, outselling other large Toyota vehicles like the 4Runner, Sequoia, and Tacoma pickup.
Although the RAV4 is competing in the compact SUV category, it would be interesting to find out how it compares to the Highlander, a larger three-row SUV, in depreciation and resale value. As it turns out, the 2021 Toyota Highlander depreciated a bit faster than the 2021 RAV4. Kelley Blue Book did the number-crunching for us and determined that a 2021 Highlander has depreciated 29% in the past three years. From a base starting price of around $35,000 (not including destination fees), you can snatch a 2021 Toyota Highlander in 2026 for about $22,500. Based on the depreciation numbers, the trade-in value is at $18,200.
On the other hand, the 2021 Toyota RAV4 has retained its value a bit better than the Highlander, having depreciated 25% in the last three years, said KBB, which is equivalent to around $7,120. With a starting MSRP of $26,250 (destination not included) in 2021, resale values for the RAV4 in 2026 are at $21,100. The trade-in value is at $19,150. The RAV4 is among the slowest-depreciating Toyota vehicles, which includes the affordable yet ho-hum Corolla Cross, Tacoma, and Sienna minivan.
Larger SUVs like the Toyota Highlander tend to lose their value faster
The Toyota RAV4 and Highlander are both unibody crossovers riding on the automaker's TNGA-K platform, which they share with other Toyota vehicles like the Camry, Sienna, and the rather pleasant-looking Crown Signia. However, the three-row Highlander has a bigger, heavier body and is 14 inches longer and 3 inches wider than the RAV4. It also rides on a lengthier 112.1-inch wheelbase compared to the RAV4's 105.9 inches.
With a heavier body comes a larger engine. All 2021 Highlanders have a 3.5-liter V6 with 295 horsepower. Meanwhile, the 2021 Toyota RAV4 has a 2.5-liter four-cylinder engine with 203 horsepower. Although the age, mileage, make, and model of a vehicle play significant roles in determining the depreciable value, high gas prices and maintenance costs have made larger SUVs like the Highlander less desirable in the used car marketplace, hence leading to lower residual values. It's not the same story with smaller cars and SUVs like the Toyota RAV4, which tend to hold their values better than midsize SUVs.
The hybrid Toyota RAV4 and Highlander depreciate a bit slower
Hybrids are more fuel-efficient than their gasoline counterparts, leading to lower depreciation and higher resale values. The Toyota RAV4 Hybrid, now in its sixth generation, retains the same TNGA-K bones as the outgoing variant, and depreciated by 24% (around $7,616) over the last three years, according to KBB. The resale and trade-in values are $23,400 and $22,100, respectively.
Like the RAV4 Hybrid, the 2021 Toyota Highlander Hybrid has held on to its value better than its gas-only sibling. KBB data shows the Highlander Hybrid has depreciated 24% (or around $8,769) over the last three years, with resale and trade-in values at $26,600 and $24,800, respectively.
For reference, the EPA rates the 2021 Toyota RAV4 gas at 27 city, 35 highway, and 30 mpg in the combined cycle. The RAV4 Hybrid does it better at 41 city, 38 highway, and 40 mpg combined. The 2021 Toyota Highlander returns 20 city, 28 highway, and 23 mpg combined, while the hybrid version is good for 35 city, 34 highway, and 35 mpg combined.