We have owned our 1997 2-door 5-speed 4WD RAV4 for nearly 4 years and over 72,000 miles. In that time, it has proved itself to be reliable, economical, practical, and a lot of fun to drive.
We bought the RAV4 for our family of three to be able to haul more stuff around than a sedan could. It has served us well - with the addition of the factory roof rack and a roof carrier bag, the RAV4 has enough room for everything we need for a week-long vacation on the road. It's quite comfortable on long trips for an SUV, and is roomy enough to accept my 6'3" frame without trouble.
Over 4 years, including New England winters, our RAV4 has averaged 25.1 MPG, on over 240 tanks of regular unleaded fuel. It has had no unscheduled visits to the mechanic. The only non-maintenance work was a minor cosmetic problem covered under warranty in the first month. The RAV4 is very easy to work on, if you're so inclined, with oil changes being about as simple as they get.
The RAV4 drives very much like a car, which is not surprising considering that many major components of the RAV4 are based on other Toyota car platforms. It's high enough off the ground for a clear view, and there's enough ground clearance to handle snow or mild off-road work. Yet, it corners very well, not as good as a sports car, but better than most SUVs. It could use more power, but it is adequate. It's also an excellent winter vehicle - the 4WD and optional Limited-Slip Differential make it capable and confidence-inspiring in bad weather. It's somewhat noisy, especially if you drive it hard, but it's very tolerable.
The exterior styling of the RAV4 is very much the love-it-or-hate-it "cute-ute" style, especially in the 2-door form we have. There's certainly no losing track of it in the parking lot. The spare tire is mounted to the rear door offset slightly to the passenger's side - wheel locks are a good idea if you opted for alloy wheels. The spare tire is an excellent place for a strap-on bike or ski carrier. Our RAV4 also has dual removable sunroofs; on nice days, with the roofs stored in their built-in holder on the inside of the rear door, it's rather reminiscent of being in a convertible.
The interior is very functional and businesslike. The big tachometer next to the speedometer is handy for us 5-speed enthusiasts, but aside from an ungraduated temperature gauge, the rest are idiot lights. The climate control is an easy-to-use set of sliders, and the vents are well placed and easy to redirect - there's even a vent under the steering wheel to keep the driver's nether regions well ventilated. There is no front cupholder standard from the factory, but the front cupholder unit from the 1998 model is easily retrofitted and much appreciated. There's a neat little cubbyhole to the driver's left that's the perfect size for a garage remote control. The cruise control is among the easiest to use and most accurate I've ever seen.
There are two small storage compartments in the rear section, one of which contains the included vehicle tool kit. It is possible to mount a CD changer in one of these storage areas. I keep a set of jumper cables in one of mine, and my daughter is allowed to store drive-time toys in the other.
The factory stereo leaves much to be desired. The speakers are cheap paper cone type speakers, and the head unit in the dashboard is only adequately functional and marginally powerful. For anyone with even mild audiophile aspirations, replacing the speakers and head unit is a necessity, and adding additional speakers and a subwoofer is a good idea. A CD changer can be mounted under the driver's seat (the jack is stored under the passenger's seat).
The 2-door RAV4 is not for everyone. It's certainly suitable for a small family, and would be great for a couple or single. Larger families should consider the 4-door, or even something bigger.
The RAV4 has a lot going for it - legendary Toyota reliability, a good balance between SUV practicality and car-like performance, and good economy.