Purchased vehicle: 2006 RAV4, Base model, 4WD, V6. Color: silver with ash interior. Options: side/curtain airbags, alloy wheels, roof rails and cross bars, tonneau cover with cargo net, floor/cargo mats.
It seemed this was the only option combination in my area that included side airbags, so I had to get it all. All things I would want anyway, apart from alloy wheels, but these are nice nonetheless.
I also considered (test drove and priced) 2006 Subaru Forrester X automatic and 2006 Honda CRV, so the review will reference them.
Buying Experience
Purchase price was $24,550 (plus tax, title, and license), which is $1K over Edmunds.com invoice, and $1.5K below MSRP. I shopped online, and went with the best quote. Overall, the online shopping experience was quite pleasant, no pressure. The problem was not the price, but availability: different dealers were quoting the same vehicles to me, and in the 'wrong' colors. So, once I got a lead on this silver model from another dealer, I asked the dealer with the best quote to get it for me. It took a couple of days to lock it in, as it was in transit. They had to do a trade and worked hard to get it for me.
One quote I got was at MSRP, but most were $1000 below MSRP. Carsdirect.com, which I considered first, was MSRP! You can do much better requesting quotes from Autobytel.com, kbb.com, Edmunds.com, or cars.com. Most internet/fleet sales managers were nice to deal with. Internet is definitely the way to go, if you want to avoid the whole dealership experience, with sales person, sales manager, and the F&I manager pouncing on you. As a woman, I don't think I would be buying a new car if this option was not available.
Interior
The Base RAV4 feels downright luxurious (This is no surprise, as I made the switch from a 1997 Nissan Sentra). Quality, workmanship, and ergonomics are excellent. Lots of thoughtful touches like illuminated ignition key area, huge side view mirrors, 6-way manually adjustable driver seat, telescopic steering wheel, adjustable seatbelt position. Easy to use controls for the radio, CD, A/C, etc. The doors feel very substantial when you close them.
Rear seats fold down by pressing the lever on each side. They don not fold down quite flat, but nothing to prevent you from loading it up with large items (we already used the RAV to transport a bunch of stuff from Ikea). There is plenty of legroom in the second row, but the seats themselves are not overly comfortable - they could use more cushioning. Still, compared to a 2006 CRV, RAV4 is much better appointed. The CRV seems ages behind; add to that the steering-wheel-mounted gear shifter and the weird placement of the emergency break - it was a no-go. Forrester's interior was quite nice, in its own way, with quality materials and excellent creature comforts.
Exterior
You get a full-size spare tire, but it is mounted on the outside, making the vehicle even longer. I think the RAV would look more streamlined if the tire was inside. Otherwise, no complaints. The car looks refined, with nice lines. No quirky look of the second-generation RAV4 (some will miss it, but not me). As far as competition goes, one review described CRV as 'competent, but dour-looking,' which sums it up pretty well. Forrester looks nice, in a rugged and outdoorsy way, but maybe too rugged or 'manly' for everyday use. It is still a tall station wagon, so I found the RAV more appealing.
Safety
Excellent with all the latest advancements: side/curtain airbags, vehicle stability control, anti-lock brakes, etc, etc. The competition is about equal here, with CRV having much the same features, and Forrester's 5-star crash ratings, but the Forrester lacks VSC and side curtain airbags (side airbags come standard).
AWD
Both RAV and CRV use electronic on-demand AWD system, while Forrester's is on at all times. While Subaru's system seems more of a sure thing, the on-demand setup is fine for California driving, with a few ski trips up the mountains a year. If I were living in the Northwest or had to drive gravel roads on a regular basis, I would have probably gone with the Subaru. Otherwise, on-demand system is adequate and helps with fuel economy as well.
Engine/Power
I originally considered a I4 on the RAV, but was so impressed with a V6 (269 hp) that I had to get it. On my second test drive, the only Base model available was a V6, and I was a lot of fun to drive. You feel no effort getting on the freeway or passing, with no whine from the engine like with a I4. I ended the test drive by taking it up a very steep hill, and it had no problem whatsoever. In addition to the fun factor, I did not want to regret getting a 4 in the future: with a V6, RAV is best in class in power-to-weight ratio, while with a four-cyl engine, it is its weak feature (per Consumer Report). The engine is very quiet. Another advantage of the V6 is the 5-speed automatic transmission, which helps with fuel economy (I4 has a 4-speed automatic transmission). Overall, with a V6, RAV is in a class of its one compared to CRV and the Forrester X. Honda's engines have a great reputation, and CRV's 4 is a 5-speed automatic, but no match to the V6 in the RAV. The Forrester is the lightest of the three, so the four-cyl would probably be adequate.
Handling & Driving Impressions
Excellent, very comfortable. Forrester also handled really well, but the ride was rougher. CRV's performance did not impress me at all; it did not handle as well as the RAV4 or Forrester, so I did not feel as comfortable driving it (well, maybe I was so turned off by the above-mentioned gear shifter, that I was unjustly prejudiced). Still, the RAV drives like a much more expensive car. Road noise is minimal and is better that with either CRV or Forrester, although at speeds above 70 miles an hour wind noise is more noticeable than on the Sentra.
Pricing
The final decision came down to Forrester vs RAV4. Overall, Forrester is "rugged and outdoorsy" while RAV is "refined and smooth" (which probably explains why my husband was leaning towards the Forrester and I wanted the RAV). And CRV was just bland. Forrester can be had under invoice, while RAV4 is at least $1,000 over. CRV was somewhere in-between price-wise.
Between the Forrester and the RAV, the latter is a step above in refinement, and has advanced safety features - vehicle stability control, brake assist, and side curtain airbags. Still, the price difference between the Forrester X and RAV4 Base AWD I4 was $3,500 (due to $2K cashback on the Forrester in March), which made it difficult to make a decision. But once I was settled on the V6, there was no contest. It ended up being $5K more for the RAV, but it is a whole new class of vehicle. Plus I liked it a lot better.
Final Shopping Tips
If you are looking for a particular RAV4 model, and would rather not wait for a factory order, be aware that not all dealers have access to the same inventory. Also, not all dealers trade with all other dealers, so you need find a dealer that can get the vehicle for you. Finally, different car sites are affiliated with different dealerships, so you need to cast your net pretty wide when you request quotes (see the websites above).
For the purchase itself, get a loan pre-approval letter from your bank or credit union before you go in to sign the papers. The dealership wants you to finance with them, and they will most likely undercut the bank by a couple of points. If not, you still have the option to go with your bank, or you at least will get a fair rate.
Do not get talked into buying extended warranty or prepaid maintenance without doing your research ahead of time. I got talked into prepaid service, and later found a deal online for 30% less. The good thing that you can cancel either within 60 days. So that is what I will do when my loan paperwork arrives.
Note: At the time of this review's writing (4/2006), the picture shown is of the second generation RAV4, not the 2006.