The second-generation Toyota RAV4 (code name XA20) marked a turning point in the history of compact SUVs. More mature, more spacious, and better finished than its predecessor, it consolidated Toyota's dominance in this segment. Available in 3-door (very agile) and 5-door (more family-oriented) body styles, it relies on a very effective permanent all-wheel drive system (50/50 distribution with viscous coupling), although 2-wheel drive (front-wheel drive) versions were offered as entry-level models. A facelift occurred in late 2003, bringing new bumpers, clear optics, enhanced equipment, and technical corrections. While the gasoline engines are of legendary reliability, the introduction of the D-4D diesel engine tarnished this generation's reputation in Europe due to costly breakdowns.
The Toyota RAV4 XA20 is an excellent compact SUV, provided you choose the right version. With a gasoline engine (2.0 VVT-i) coupled to a manual gearbox, it's an almost indestructible vehicle that fully justifies Toyota's reputation. However, the D-4D diesel version, very popular in Europe at the time, is a hotbed of costly problems (flywheel, injection, turbo) that are best avoided today, unless all defects have already been corrected with supporting invoices. Also, be wary of automatic transmission versions from before 2004, whose defective ECU can ruin the transmission.