How Much Does the 2021 Toyota RAV4 Prime Cost After Tax Credits?

The 2021 Toyota RAV4 Prime has turned out to be one of the most exciting plug-in hybrid models of the year. The RAV4 Prime may seem expensive, but it is eligible for a federal electric vehicle tax credit. Here’s how much the RAV4 Prime can potentially get discounted.

The 2021 Toyota RAV4 Prime is a steal thanks to tax incentives

RELATED: The 2021 Toyota RAV4 Prime Is Way More Affordable Than You Think

The 2021 Toyota RAV4 Prime is a plug-in hybrid vehicle. Hybrid vehicles often use regenerative braking to power their motors. Hybrid vehicles use electric motors in tandem with gas engines to optimize fuel efficiency, Plug-in hybrids allow drivers to recharge electric motors using charging stations similarly to fully electric vehicles. Plug-in hybrids also have electric-only ranges, allowing vehicles to travel a certain range on just electricity.

Plug-in hybrid vehicles are the closest class to fully electric vehicles. PHEVs (plug-in hybrid electric vehicles) also happen to be eligible for the federal electric vehicle tax incentive since they are much more environmentally friendly than gas-powered vehicles. The current federal electric vehicle tax incentive is a $7,500 tax credit after the purchase of eligible EVs or PHEVs.

The 2021 Toyota RAV4 Prime SE currently starts at $38,350. The Prime XSE starts at $41,675. After the tax credit, the Prime SE’s price becomes $30,750. The XSE’s price becomes $34,175 after the tax credit.

Thanks to the federal electric vehicle tax incentive, the RAV4 Prime is much more affordable than it appears. Considering its unique power and capabilities, the RAV4 Prime SE is a steal at under $31,000.

The 2021 Toyota RAV4 Prime provides incredible value for its price

A red 2021 Toyota RAV4 Prime is driving on the road.
The 2021 Toyota RAV4 Prime | Toyota

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The Toyota RAV4 is currently the most popular SUV in America. It even beat the Honda CR-V for the top position. When it comes to the RAV4 Prime, the apple doesn’t fall far from the tree.

The RAV4 Prime provides incredible value for its price because it does so much more than a regular RAV4. According to Car and Driver, it uses a 2.5-liter four-cylinder engine and electric motors to make a whopping 302 horsepower. That’s 99 more horses than the base model 2021 Toyota RAV4.

The RAV4 Prime also has amazing fuel efficiency along with an incredible acceleration rate. The RAV4 Prime gets 40 miles per gallon in the city and 36 miles per gallon on the highway. It gets a combined 38 miles per gallon.

Should you buy a Toyota RAV4 Prime?

The Toyota RAV4 Prime | MARK RALSTON/AFP via Getty Images

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The 2021 Toyota RAV4 Prime is an amazing hybrid vehicle. It balances power with fuel efficiency to create an SUV that is both fun to drive and affordable to own. The RAV4 Prime perfectly represents the future of the SUV vehicle class. If you aren’t ready to go fully electric yet, it is a great hybrid alternative to consider.

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