Is the Toyota RAV4 Prime Eligible for the Tax Rebate?

Is the Toyota RAV4 Prime the best hybrid SUV on the market right now? Some drivers might agree that is the case. The 2021 Toyota RAV4 hybrid combines the reliability of a Toyota SUV with the benefits of hybrid fuel economy. What are some of the specs on this compact SUV?

How much will the Toyota RAV4 Prime cost?

A red Toyota RAV4 Prime
The Toyota RAV4 Prime XSE | Toyota

The Toyota RAV4 Prime comes in two trim levels, the Prime SE and the Prime XSE. Both options are a 2.5L Plug-in Hybrid and get 94 MPGe. The EPA-estimated mileage estimates from Toyota are 40 mpg in hybrid mode in the city, 36 mpg on the highway, and 38 mpg combined. The electric driving range is 42 miles.

The 2021 Toyota RAV4 Prime SE price is $38,350, while the Toyota RAV4 Prime XSE starts at $41,675. Both SUVs come with a 36-month, 36,000 warranty. The hybrid battery comes with a 10-year, 150,000-mile warranty. Your local dealership likely has a few Toyota RAV4 Prime for sale, but you might have to look a few miles further than usual. The price of used and new cars will hopefully level out in the near future and vehicles like a used RAV4 will be more affordable once again.

Is the Toyota RAV4 Prime eligible for the tax credit?

At the time of publication, the RAV4 Prime XSE and SE are both still eligible, according to the United States Department of Energy (DOE). The PHEV is eligible for the full $7,500 federal tax credit right now. The tax rebates and credits are in the process of changing, but it still qualifies. The Toyota RAV4 Prime is one of a few 2021 Toyota vehicles that still have the total rebate.

While the hybrid option is suitable for some families, the non-hybrid 2021 Toyota RAV4 is also a reliable SUV. The compact vehicle also offers cargo space, a comfortable ride, and modern technology. It has room for five passengers and has 302 hp.

Consumer Reports review of the compact Toyota SUV

Consumer Reports gave the RAV4 Prime a positive review. It came in sixth on the list of 23 compact SUVs. On the road test, the SUV scored 85 out of 100. The predicted owner satisfaction was above average, while the reliability was average.

Some of the safety features that are included on the Toyota RAV4 Prime are forward-collision warning and automatic emergency braking. It also provides pedestrian detection, lane departure warning, and lane-keeping assistance. The National Highway Traffic Safety Administration (NHTSA) has one recall for the headlights. It was reported that the horizontal headlight beams might be incorrectly adjusted and could increase the risk of a crash.

There will be a 2022 RAV4 Prime, too, so keep up to date on the tax credits to get a good deal. Don’t overlook a good deal on some of the model year-end sales. Plus, some of the 2021 vehicles might qualify for a used EV rebate at some point. There is a big push for electric vehicle incentives right now, including a proposal for a $12,500 EV incentive.

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