As I just leased this November of '03, my review is based on just over a month with this new (and improved) '04.
First things first - the engine. Wow.
The original RAV4's were underpowered and buzzy. This new 161 HP engine is smooth, quick and does a lot to make you feel as if you spent ten to fifteen thousand more. As stated by the previous poster, visibility is exceptional as well, and my wife commented on the strong brakes. As a Spyder owner, I am a tough judge on braking and handling and was still impressed(relieved?) when I first drove it.
The car it replaced, a 1998 Kia Sportage, seems primitive by comparison, in terms of performance as well as fit, finish, and ergonomics. It says a lot that this automatic is faster than the 5-speed Kia, which had a mere 130 horses.
We bought the base RAV4 with 2-wheel drive, as we almost never used the 4-wheel drive on the Kia, and upgraded it with dealer-installed leather.
Therein lies our one real beef - the seats. They are a bit shallow, and not curved up at the front of the seat, so you never feel like you are 'in' them, but sitting 'on' them.
Also the leather installed was poorly matched and had a horrible glue smell from the side panels which took forever to fade. For a short ride the seats are OK, but with better seats this would be a perfect long-trip vehicle. Also, easier adjustments for height, etc. would be welcome(no height adjustment at all on passenger side).
The stereo has better than average sound, if not quite up there with the best, but again better than you would expect in this class. Clean powerful and well balanced sound and the mandatory CD player.
The new body style is very attractive, with some excellent paint colors(we chose 'evergreen' which looks grey or green depending on the lighting.)
As for cargo, the side-opening/automatically unlocking rear door, and fold down/removable rear seats make the RAV4 a snap to load and unload.
The dash and interior layout are ergonomically correct and aesthetically pleasing, adding to the excellent value.
It seems as if Toyota woke up and decided that small does not have to mean junky. Now if only they can do something with those seats...
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