Toyota RAV4 Vs Tesla Model Y: Ownership Costs Compared

Let's take a look at how this all adds up financially.

By: Steven Loveday

Feb 6, 2020 at 1:04pm ET

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It's important to compare Tesla's offerings, and especially its upcoming Model Y, which is supposed to come to market very soon and way ahead of schedule, to current successful crossovers from legacy automakers. In order to encourage EV adoption, we need to look more fully at the current gas-powered competition to see if it makes sense for folks to take the plunge.

With the above said, the Toyota RAV4 was completely redesigned for the 2019 model year. Since then, it has proven to be one of the best-selling SUVs in the United States. Even prior to Toyota's extensive redesign, the RAV4 SUV fared well for years. This is because of its roomy accommodations, huge cargo hold, and impressive safety and predicted reliability ratings across the board.

The recent RAV4 redesign welcomes a plethora of advanced driver assistance systems, as well as newly standard tech and convenience features. In base form, it will cost you $25,950 before taxes and destination. With all-wheel drive it starts at $27,245. It's important to note here that there is no three-row option, and all-wheel drive is not standard.

The all-wheel-drive Tesla Model Y has a starting price of $52,990, which is about double that of the RAV4. However, we do know that, down the line, Tesla will offer a base Model Y at a cheaper starting price. At any rate, the EPA says you'll save some $3,750 over five years in "fuel" costs choosing the Model Y over the RAV4.

Sadly, that means you'd have to own a Model Y for many years to make up the difference. Nonetheless, if you require a three-row SUV and plan to go all-electric, the Model Y is your only option.