Toyota’s new RAV4 is scheduled to be released in Japan within fiscal year 2025. While it will undergo a major evolution with a full model change, the biggest concern for many potential buyers is likely the price.
For those wondering about the price of the new RAV4
In this article, we will provide a detailed explanation based on the latest information about the expected price of the new RAV4, the reason behind the price increase, and residual value loans (residual credit) that will be useful for financial planning when purchasing.
Estimated price of the new RAV4: Price range by grade
Expected price of hybrid (HEV) models
It has been announced that the new RAV4 will discontinue the conventional gasoline model and become an all-electric vehicle, which will undoubtedly increase the entry price from the current model.
Current RAV4 price (reference)
- Gasoline X (4WD): 3,237,300 yen
- Hybrid X (E-Four): 3,859,900 yen
- Hybrid G: 4,334,000 yen
Estimated price of the new RAV4 Hybrid
- RAV4 CORE HEV E-Four: Approximately 4 million to 4.2 million yen
- RAV4 ADVENTURE HEV E-Four: Approximately 4.5 million yen
The price is expected to rise by approximately 150,000 to 200,000 yen from the previous hybrid model. This price increase is due to the adoption of an evolved hybrid system from the fifth generation to the sixth generation, the adoption of the next-generation multimedia system “Arene,” and significant improvements to safety equipment.
Expected price of plug-in hybrid (PHEV) models
The new RAV4 PHEV model will be equipped with Toyota’s first sixth-generation hybrid system. Battery capacity will increase by approximately 30%, from 18.1 kWh to 22.7 kWh, and the EV driving range will be significantly extended from 95 km to 150 km.
Current RAV4 PHEV price (reference)
- RAV4 PHV Z: 5,661,700 yen
Estimated price of the new RAV4 PHEV
- RAV4 CORE PHEV E-Four: Approximately 5.8 million to 6 million yen
- RAV4 GR SPORT PHEV E-Four: Approximately 6.5 million to 6.7 million yen
The GR SPORT in particular is expected to be priced in the high 6 million yen range, as it will be equipped with special suspension tuning, lightweight aluminum wheels, aerodynamic parts, and more.
Why are prices increasing? 5 reasons for price increases
1. Electrification costs due to the discontinuation of gasoline models
The biggest factor is the all-electric powertrain: hybrid systems and batteries are more expensive to manufacture than conventional gasoline engines, and this is reflected in the price.
2. Adoption of a sixth-generation hybrid system
The new RAV4 will be equipped with the latest 6th generation hybrid system. The PHEV model in particular uses silicon carbide semiconductors to achieve compact size and high efficiency, but this advanced technology is what is driving up the price.
3. First adoption of the software platform “Arene”
This is the first car to use Toyota’s Arene, a next-generation software platform currently under development. The increased digitalization of features, such as a customizable home screen, an improved voice recognition system, and support for over-the-air (OTA) updates, is driving up costs.
4. Significantly improved safety equipment
Equipped with the latest Toyota Safety Sense, the car’s safety features have been significantly enhanced, including an improved driver emergency response system, a sudden acceleration suppression function as standard equipment, and a 3D panoramic view monitor.
5. Improved interior and exterior quality
The price reflects investments made to improve the product’s appeal, such as a large 12.3-inch or 12.9-inch display, newly designed seats, and high-quality interior materials.
Price comparison table with current models
| grade | Current price | New model expected price | Price increase amount |
|---|---|---|---|
| Gasoline X | 3,237,000 yen | – | abolition |
| HV X/CORE | 3,859,000 yen | 4 million to 4.2 million yen | +150,000~350,000 yen |
| HV G/ADVENTURE | 4,334,000 yen | Approximately 4.5 million yen | +150,000 to 200,000 yen |
| PHV Z/CORE | 5,661,000 yen | 5.8 million to 6 million yen | +150,000~350,000 yen |
| PHV GR SPORT | – | 6.5 million to 6.7 million yen | New Settings |
Options for purchasing a new RAV4 with a residual value loan (residual credit)
What is a residual value loan?
Residual value loans (Zankure) are a purchasing method in which you pay in installments the amount of the vehicle price minus the “residual value” after several years. Because it reduces monthly payments, it is an effective option when purchasing an expensive new car.
Example of residual credit usage for the new RAV4
Examples of purchase conditions:
- Vehicle price: 4.2 million yen (RAV4 CORE HEV)
- Down payment: 500,000 yen
- Residual value: 40% (1.68 million yen after 3 years)
- Loan amount: 3.7 million yen
- Loan period: 3 years (36 installments)
- Interest rate: 4.8% per year
Monthly payment example:
- Residual credit usage: Approximately 60,000 yen/month
- Standard loan: Approximately 110,000 yen/month
By setting the residual value, you can reduce your monthly payments by approximately 50,000 yen.
Advantages of residual value loans
- Monthly payments can be reduced
- Approximately 40-50% of the vehicle price will remain the same, reducing the actual borrowing amount
- Easy to switch to a new car in a short period of time
- You can return or transfer after 3 or 5 years
- Adaptable to lifestyle changes
- Flexible response to changes in family structure, etc.
- You can continue to drive a car equipped with the latest safety features
- Regular switching ensures you always benefit from the latest technology
Points to note about residual value loans
- There is a mileage limit
- Generally, the limit is 1,000 to 1,500 km per month.
- If you exceed this limit, an additional fee will be charged.
- The condition of the vehicle is limited
- Scratches, dents, and interior dirt affect the appraisal.
- Additional costs may be incurred when returning
- Total payments may be higher than a regular loan
- The final total amount may be higher as interest is applied to the entire amount, including the residual value.
- Limited customization
- Major modifications are generally not permitted
- When returning, the item must be restored to its original condition.
Features of Toyota’s residual value loan “Toyota Finance”
Toyota offers a unique residual value credit called “Toyota Finance.”
Toyota Finance Features:
- Relatively high residual value rate (reflecting high resale value)
- Discount when combined with a maintenance package at dealerships
- Clear options for three and five years from now
- Switch to a new car
- Purchase by paying the residual value
- Return the vehicle
Estimated residual value of the new RAV4:
- After 3 years: Approximately 55-60% (due to high resale value)
- After 5 years: about 40~45%
The RAV4 is a popular SUV with a high resale value, making it a good fit for residual value loans.
Points to consider when purchasing the new RAV4
1. Hybrid or PHEV?
Hybrid is recommended for:
- There is no charging environment
- Mainly long distance driving
- Want to reduce initial costs
PHEV is recommended for:
- Have charging facilities at home
- Daily travel distance is short (can be covered by EV driving)
- Considering securing power supply in case of disaster (V2H compatible)
- I want to prioritize environmental performance
2. Points to consider when selecting a grade
The new RAV4 is available in three grades, each with its own unique character.
Adventure – Outdoor-oriented
toyota rav4 adventure
This grade is aimed at off-roaders. It features a tough design and specifications that emphasize practicality, making it the perfect choice for those who enjoy outdoor activities.
ADVENTURE:
- Emphasis on off-road performance
- Hybrid-only configuration
- Recommended for outdoor enthusiasts
Core – A balanced bestseller
toyota rav4 core
This is a basic grade that offers a high-quality finish. Its appeal lies in the flexibility of being able to choose between a hybrid and a plug-in hybrid (PHV), and it is expected to be popular with a wide range of users.
CORE:
- Well-balanced with standard equipment
- Both hybrid and PHEV options available
- Ideal for urban use
GR Sport – On-road sports specification
Toyota RAV4 GR Sport
This is a sporty model exclusively for plug-in hybrids. With its special suspension and design elements, this grade pursues on-road driving performance and styling.
GR SPORT:
- Specialized driving performance
- Available only for PHEV
- For those who want to enjoy driving with special tuning
3. How to create a financial plan
Bulk Purchase:
- Pros: No interest charges, immediate ownership
- Disadvantages: Requires a large amount of capital
Standard loan:
- Pros: Ownership, no mileage restrictions
- Cons: High monthly payments
Residual value loan:
- Advantages: Lower monthly payments, easier regular switching
- Cons: Mileage restrictions, potential for higher total payments
lease:
- Benefits: Monthly flat rate, maintenance included
- Cons: No ownership, limited customization
Release date and purchase timing
Expected release date
Release in Japan:
- Announcement: May 21, 2025 (Completed)
- Release date: December 17, 2025
- Start of production: HEV December 1, 2025, PHEV March 2, 2026
Considering the timing of purchase
Purchased immediately after release:
- Benefits: Get the latest models first
- Disadvantages: No discounts, long delivery times
3-6 months after release:
- Market reputation is established
- Information on initial defects is coming out
- Possibility of some price negotiation
Targeting fiscal year end:
- It is easier to negotiate discounts during the fiscal year endings of March and September
- Dealer option services can be expected
Summary: The new RAV4 is expensive, but worth it.
The new RAV4 is expected to be priced at around 150,000 to 300,000 yen higher than the current model, but it has undergone improvements that are worth the price increase.
Key advancements that justify the price increase:
- Improved environmental performance through full vehicle electrification
- Adoption of sixth-generation hybrid system
- Advanced software platform “Arene”
- Significantly improved safety features
- High-quality interior and exterior design
Key points for planning your purchase:
- Residual value loan to reduce monthly payments
- For long-term holding, you can usually get a loan or buy it in one lump sum.
- If you have a charging environment, PHEVs are a good long-term option
- Plan to take advantage of high resale value
If you are considering purchasing the new RAV4, we recommend that you take into consideration your lifestyle, usage environment, and budget to choose the most suitable grade and purchase method.
There is still some time until the release, so take your time to gather information, test drive the car at a dealer, get quotes, and make a purchase plan that you are satisfied with.
