(First Posted January 17, 2016) After Paul announced last week that this would be Toyota Week, we were so excited that we ran out and bought one. No, not really. However it is true that if every car has a story, then this one’s is just beginning with us. After driving the Chrysler 300C for all of last year, I found myself deciding it was a great car without any objective faults but, for me at least, it just didn’t do it. I know, I know, so a Toyota does? Read on…
I admit I have a short attention span when it comes to my cars, and have to praise the Chrysler, it did everything well and never let me down. But I noticed my eye wandering by the end of the summer and after thinking about it, realized that I really preferred something with a hatch or cargo space to drive around. I also tend to trundle a bit, and don’t feel the need to floor the throttle at every opportunity anymore
Options I considered along with many others included the current Audi Allroad (superb design and materials, but just too small), Nissan Murano (very weird interior trim but I love the adventurous exterior styling), Jeep Grand Cherokee (very hard to find with the options I wanted and no more), 2012-2014 VW Touareg Hybrid (this was interesting, cool tech and very powerful and wonderfully depreciated but Allison rejected VW after their recent shenanigans came to light) and the Mercedes ML350/550 (Gen 2 and Gen 3 since we liked our GL but prices seemed to increase a lot over the fall for some reason) and then I rode in a friend of my wife’s new Highlander.
Previously I had a fairly low (and most likely entirely undeserved) opinion of the Highlander (Camry on stilts, right?) but did have a high opinion of every other Toyota we’d actually owned (Cressida, Land Cruiser, Sienna, Rav4). I thought I’d give it a real chance and looked at a few of the last generation ones and then some new ones. I quickly realized that these things really hold their value to the point that slightly used ones are asking higher prices than brand new ones after incentives are applied.
Between the last generation and the current generation the feature content has seemed to change by an entire trim level. By that I mean that the former top of the line Limited trim is roughly equivalent to the current mid-level XLE while the current Limited trim has many features that were not even available in a Highlander last time around. For example, the current mid-level XLE has navigation and leather standard along with niceties such as rear window sunshades that descend into the doors.
The major new items (besides some trim differences and better audio) on the Limited consist of a whole suite of additional driver-aid and safety technology but to get ALL of the tech, you have to jump further up the ladder to the Limited Platinum which includes a panoramic sunroof. This was one feature I did not want, I had it on the Chrysler as well as on the Touareg, never used it on either, and was determined not to again pay for something useless to me.
I further decided that I didn’t like the look of the 19″ “Chromatec” wheels on the Limited. These have a chrome effect plastic skin/hubcap that is bonded/glued to an alloy wheel underneath and is neither removable nor separately replaceable. It’s kind of weird, and I wasn’t personally thrilled with the look. Some other items would be nice to have, such as memory seats and a power passenger seat along with additional interior accent lighting, but the “bones” of the car were the same.
I guess you can tell where I am going with this, I decided that the XLE trim level was just fine for me (us). One of the best things about a mass-market brand such as Toyota is that there are many dealers around, we have six or so within fifty miles. I got several price quotes online and then decided to drive one, which I did and during which drive came to understand why there are so many of these around, they just get the job done in a very pleasing way. Sure, there are other options that are faster or have more gadgets, but the other cars in our garage can fulfill those desires.
It turned out over the next few weeks that my biggest issues were A) getting a dealer to commit to a decent trade-in price for the Chrysler and B) actually finding a Highlander in stock (or already in transit) in a color combination that I liked; just like Subarus they tend to get sold before even being delivered and many of the colors I thought I might like were somewhat rare or at least not the ones being produced in abundance.
Interestingly, just like Subaru around here, although the cars are hard to find in stock on a lot, the dealers are discounting the cars tremendously. It was not difficult at all to get around 10% off the MSRP. Toyota’s issue is that they have too many dealers cannibalizing each other’s business. Or, more likely, it’s all built in already and there are significant volume bonuses in play that a buyer has no knowledge of. In any case the discount for the leftover 2015’s was the same as for the new 2016’s (and most dealers were handling this the same way) so there was no reason not to spring for the one calendar year newer one.
The XLE also has an interesting option, that being the choice between a second row bench or captain’s chairs with a passageway to the third row along with a folding cupholder/tray table. After mulling it over and watching some online reviews, we realized that the separation in the second row would be good and if one of the kids was in the third row, then having the passageway would make it feel more airy and open back there in addition to the easier access.
The Limited on the other hand is only available with the captain’s chairs, while the lower LE level is only available with the bench. The folding split third row is standard in all Highlanders. The captain’s chair option costs $275 which we considered worthwhile even if it does remove one potential seating position. The last generation had a removable insert that accomplished a similar effect but with much less space in the “aisle”.
The Highlander was last redesigned for the 2014 model year, making ours the third year of the new series. In the XLE, literally the only difference I’ve found compared to the 2015 is the color of the non-spoke area of the wheels, in 2015 it was kind of a gray, and in 2016 it is a much darker almost-black. The wheels pictured on my car currently are actually from a 2015 while the loose wheel/tire to the left is one that our 2016 car came with.
I found a set of never-used 2015 take-off’s on ebay, they arrived in perfect condition and then I mated them with another set of TPMS’s and a set of the newest Blizzak DM-V2 winter tires. Both sets are exactly the same size with an 18″ diameter, something about the picture above makes the “black” ones look larger, they are not, they are the same wheel except for the paint color. The original wheels and tires are in the garage waiting for spring.
The engine is a 3.5liter V6 generating 270hp at 6200rpm and 248 lb-ft of torque at 4700rpm with a 6-speed automatic transmission. The engine appears to be a carryover from the prior generation, which is how Toyota seems to do things. At this point it does not have the latest technology such as direct injection etc. as the closely related engine in the Lexus RX350 does but the thinking is that along with a slight cosmetic update for 2017 the engine may change to that as well. No matter, the tried and true works for me.
Surprisingly the engine is actually a bit louder than I thought it would be. It’s not loud per se, but you are aware it is on and running. It doesn’t cause visible vibrations in the cabin but does make you realize that it is part of the experience. I don’t dislike it at all as I don’t generally like my cars to be sensory deprivation chambers, it’s hard to describe though.
The AWD is unobtrusive (more so than in my old RAV4), one of the display options is to show where power is apportioned, this seems to indicate that almost all of the time under any acceleration some (up to half) is going to the rear wheels no matter the grip level. Like my old RAV4 it also has the “diff”-lock button that can keep it set at a 50/50 front/rear split until one reaches 25mph at which time it automatically shuts off, which is helpful in deeper snow conditions. It also has a “Snow” button which aids launch in slippery areas or currently in my neighborhood where the streets are a mixture of snow and ice, presumably by lowering torque or simply starting in a higher gear.
It drives pretty much how you all would expect a Highlander (or any Toyota for that matter) to; i.e. it starts, and gets you there and back with no drama. It does have a few surprises though. While the steering is a bit lifeless without much feedback, it is pleasant to drive at higher speeds.
Early this week I was in Wyoming with it and took Highway 287 back home, this is a road between Laramie and Fort Collins composed of many elevation changes and a lot of high speed sweepers. The Highlander was quite enjoyable, much more than I would have thought and the drive confirmed the other reviews I had studied before purchasing it.
But that isn’t its main mission, the idea is to transport family and others in comfort and safety without causing extra stress or aggravation. To that end, and especially concerning its interior, it excels. Large comfortable seats, lots of headroom and tons of legroom all help with this. The driver’s seat has an adjustment wherein the front seat cushion literally sort of unfurls to create an extra measure of thigh support (very slick) and the second row seats are movable forward and rear depending on how you want to apportion the second vs. third row room.
A marvelous feature is the almost full width shelf under the instrument panel that is ideal for phones, pens, change, notepads, or whatever other oddments you might want to stash there. The last time I saw something like this was in my friend’s 1972 VW Squareback back in high school. What a great and virtually zero cost feature!
The center console is not obtrusively wide but it does contain one of the largest storage compartments I’ve seen, the lid of which doubles as the arm rest. Heated seats are appreciated in the winter, especially with a rheostat-style control that doesn’t reset after every restart like our other cars do with their pushbutton heat controls. The second row has to do with non-heated seats, another Limited option along with the heated steering wheel, which is the one thing we do sort of lament not having. Oh well, we will just have to suffer.
Overhead along with cabin lighting is a “conversation” mirror, like that in many minivans where you can see every seated position which I don’t use as it somehow messes with my head and makes me uncomfortable. What it also has though is a feature that amplifies your voice (the level is controllable) throughout the cabin. One can speak softly and still be heard in the way back if it is turned up. Perfect for road trips, no more need to potentially wear out the vocal chords admonishing the children to “Don’t make me stop this car, Junior!”
Styling is obviously subjective. I personally think Toyota did a good job with this generation with the large and fairly flat front end and some interesting sculpting going on in the hood and along the sides. In recent Toyota fashion, the lights front and rear sort of “bug out” which doesn’t disturb me. A very nice feature is the rear glass which can open separately from the (powered) hatch, like the old Explorer did. More hatchback rear ends should have this, the convenience factor is huge.
Picking the color was one of the toughest things. In the end we got the exterior color that my wife thought she would not like at all and the interior that I didn’t think I wanted. Our color is called “Creme Brulee” and is sort of a dusty silver-gold but more on the gray/brown side of the spectrum rather than red/yellow if that makes sense. It changes a bit based on the light.
Inside we chose black after considering both the Ash (Gray) and Almond (tan but very buttery, almost yellow). The black interior has contrasting brown stitching on the seats as well as some matching brown trim on the door panels and dashboard. It works with this exterior color but wouldn’t with all of them, there is definitely more to think about than usual. (The tan interior has the same brown accents and the gray has blue accents, obviously some interior/exterior pairings work better than others.)
The exterior color is interesting to me in that I believe color may be something like one’s sense of taste (as in food), perhaps one’s perception of these things changes as one matures. Neither of us consciously like or have ever liked “gold” colored cars but I find that as I age I appreciate the tone more or at least certain variations of it. This particular shade works very well for me, much like the “platinum” color that the Subaru Outback uses that is similar.
After we did the paperwork and drove it home, my wife said she really liked it much more than she thought she would and would I mind if it became “her” car. We all know there is only one correct answer to that question so it now resides on her side of the garage. But I do get to drive it whenever I want and am also thrilled that after years of working her way “up the ladder” she is happy to drive a very nice, but definitely more mainstream-label car again. I was kind of fretting as to what might strike her fancy eventually after the Mercedes.
The other interesting thing we realized is that we bought it on December 5th, a year to the day after we were involved in the accident that totaled our Outback. In many ways, the current Highlander is the car that Subaru needs to build and a logical successor to the Outback that used to grace our driveway (which is what the new 2019 Subaru Ascent is but not for our driveway).
Update as of August 5, 2018: Well, here we are about two and half years later. We still have this Highlander, it has performed well for almost 37,000 miles in that time span and is comfortably broken in. Did we make the right decision buying this one? Yes, I would say so.
Of all the three-row mid-sizers this is possibly one of the smaller ones as regards the third row. We don’t use it very much but at this point it is our only three-rower so if we all go to the airport or out for dinner or on a trip, well, someone gets stuck in the back. The boys argue over who has to head to the back but once ensconced back there they seem OK (and usually trade on the return trip).
In return however the second row is very large with a low floor, tons of legroom (adjustable) and plenty of hip and shoulder room. The third row is a 60/40 split arrangement so with one passenger back there it can still provide a modicum of luggage space.
No hail damage this time, thankfully.
We’ve had a couple of minor issues. Soon after we got it something went awry in the lumbar support area of the driver’s seat and it took a couple of visits for the dealer to finally take the seat apart and once and for all correct the situation, something was poking in a manner it wasn’t supposed to. It’s been good for over two years now.
Then, around 30,000 miles the brakes starting pulsating heavily due to warping. I was requesting that they replace the rotors but was told that the first remedy would be to resurface the rotors and if that didn’t work the matter would be escalated. Happily, the resurfacing worked and has been fine now for several thousand miles.
The oil change interval is 10,000 miles with synthetic oil, the maintenance minder (or profit) light comes on every 5,000 miles. I finally figured out how to manually reset it via YouTube and now just have the oil etc. service done per the published maintenance schedule (every 10k).
It’s proven to be a very “car”-like vehicle to drive. The controls are light, most inputs are low effort but with enough tactile response to give some feedback. It’ll never be a “driver’s car” but that’s not really its mission. It gets us where we need to go. Over the time we’ve had it, I believe the engine to have loosened up a bit and it now surprises me with how much power it actually has. For a while I thought I may be missing out on the newer, somewhat upgraded 2017 engine but no, this is more than adequate really. The six speed transmission shifts smoothly and unobtrusively as well, this is what Toyota does so well.
The real reason for the road trip to Canada.
The first year we had it I took my youngest son on a roadtrip through the northern US, Manitoba and Saskatchewan in it without issue. Last Thanksgiving we took it to Las Vegas along with some stops along the way, piling around 2500 miles on it in a week’s time. Again, no hiccups, no issues to report, just an all-day comfortable place to be.
The stock tires might need replacing next summer the way they look now, rotating the winter tires into the mix obviously is extending their lifespan but they aren’t the hardest wearing things I’ve ever seen. We got the Bridgestone Duelers as stock fitment but will likely replace them with the Michelin option when the time comes.
What else? I guess the main gripe might be that the paint, while applied well, is frankly very thin. The finish has been VERY susceptible to scratches, especially along the sides. Not so much rock chips on the front even though we have had to replace the windshield once already due a crack from a rock and it is chipped yet again. I think I noticed the same thing on my old RAV4 and am at least glad this color hides it better than the black did on that one.
If I had to name a second gripe, it might be that fuel mileage at a combined 19.3 average so far is lower that I’d prefer it. At least it just takes regular and I suppose it does offer a good amount of power in return. They do offer a Hybrid version, now available on all trim levels if I am not mistaken that does better in that regard.
But you know what, it’s a mass-market Toyota Highlander, meant to move people and their stuff around, it’s not a showpiece and will never be collectible, as long as it does what it does how it’s doing it, it will be appreciated both by us as well as the thousands upon thousands of others that made the same choice. I believe the Highlander is the #2 selling vehicle here in Colorado (Outback is #1) and it makes sense.
My favorite parts of it continue to be the shelf under the front dashboard for the convenience of it all and secondly the glass opening in the hatch. I had to get a 10-foot long countertop from the Lowe’s in Cheyenne to a house in Laramie and the employee helping me load it told me I really needed a pickup like his and then pointed it out to me.
I asked him how would he load a 10-foot counter in his CrewCab’s 5foot 7inch bed without almost half of it extending over the tailgate, i.e. in no way better, and he didn’t really have an answer for that and got back to helping me. Here we just folded the second row, moved the front passenger seat all the way up and ended up with no more than two feet extending out the back window. It worked just fine. Regular lumber is even better, 10-foot lengths will fit if angled and placed on top of the center console with a towel underneath, and the back hatch and glass can be completely closed.
Do we look at other options sometimes? Of course we do! But we keep realizing that this Highlander is almost perfect for us currently and nothing else would be appreciably better in more than perhaps one aspect per different vehicle and usually with a larger tradeoff in another area. So it’s still with us and likely to remain so for the foreseeable future.
Thanks for sharing the details on your new Highlander. I really like it, and think it is one of the best looking vehicles in Toyota’s current lineup. These are hugely popular where I live, and I can see why. I also admire how Toyota continues to excel in the little details that make vehicles so useful day-to-day, like the great interior stowage and the opening tailgate window. My 2014 Grand Cherokee has neither…
Like you, I’m also very particular about the color and options combo on my cars. Other than my Honda Preludes many years ago, I’ve always specifically ordered a car, and needed it built or sourced from another dealer. The dealers may not like it, since they’d rather sell what they’ve got, but for my money I always want what is best for me, not them 🙂
GN, like you I would always special order a new vehicle, getting exactly what I wanted. This was great, especially back in the day before trim packages when options were mostly a la carte. Things seemed to have changed quite a bit nowadays, especially with imports. A few years ago when buying my wife’s Lexus ES I planned to do the same. I had all the options selected I wanted, with none that I didn’t. No vehicles in inventory came close, as they are all shipped with pre-determined options for different sections of the country. The dealer greatly discouraged my plan to order, stating it would take over six months and there was no guarantee. Also, my nice discount would disappear. In order to get navigation I had to accept thousands in other unwanted options.
BTW, the Highlander is quite nice. Wonder why Toyota had the Venza, which probably captured potential Highlander customers.
I was wondering how long you’d keep the Chrysler…trunks are a bit limiting.
Nice color. And I know about “losing” the new car to the better half. I bought the Forester to replace the Cherokee I was driving, but within a few days, I was driving the Caravan. Just as well…
“trunks are a bit limiting” — Yes. After driving hatchbacks and small wagons for a decade now, I am so reluctant to go back.
This is a major reason I have the Rio. I love the convenience of a hatchback.
Here in Soviet Canuckistan our tax laws much favour leases, 100% of which are a write off. However, leasing a car that is worth more than your annual income in final transaction price, the CRA will certainly audit you.
Don’t attract too much attention is my credo when it comes to cars.
I’ll never go there. Always been a hatch driver, for my DD.
Yep Xsara hatchback to a C5 Hatchback most usefull bodystyle other than a wagon Ive owned, did find a C5 wagon for sale but automatic and rougher than I wanted.
I rather like this and the color isn’t too bad. Of course, with creme brûlée being a favorite of mine….
Not being overly conversant in any more tax law than I need to be, your explanation might explain the prevalence of higher weight (and GVW) vehicles seen in various applications. Especially those insidious crew-cab pickups. 🙂
But, Jim, you do continue to impress me. You are the only person I know that instead of getting an oil change will simply buy a different vehicle.
Hey now, I got two oil changes in the Chrysler! But with intervals getting longer and longer these days…The Toyota and Mercedes both specify 10k intervals and both use synthetic. The Porsche also specifies 10k but with the history of those engines specifically, prudence has begun to dictate much shorter intervals, more like 4000 miles even with the synthetic. Or at least once a year, like the others above.
I recall you driving one of those insidious crew cab pickups yourself…In red to boot, so nobody, but nobody, misses you driving down the road 🙂
Red tends to have a nice contrast with snowy roads. Plus it complements the advertisements covering the U-Haul trailer I rented yesterday.
You remind me I need to finish a COAL on my most versatile of vehicles.
My father has bought nothing but red Fords since 2001.
I thought Jim did this when a light came on, which directs the rest of us to fill up…..;-)
Oh, I thought the little orange symbol was the signal to find a cash machine. And the handy gauge tells you how much longer you can drive until replacement needed!
This is a very timely writeup for me, as we are going to be parting company with our faithful 2006 Avalon Limited, which has been the best overall vehicle that we have ever had and plan to buy a new Highlander Limited Platinum, in pearl white with black interior. We had no intention of keeping the Avalon as long as we did, but circumstances beyond my control (owning a construction business during a recession) proved that we had made the right choice.
I’m on the fence about the AWD, I have it in a Volvo XC70, but I wonder if it is necessary in Southern CA where all we get is occasional rain.
I have an Outback in Houston, where rain is all it deals with. I love the tracking of AWD. Very confident. But no necessary I guess unless you have snow or trails.
Looks like a nice rig. Too bad Toyota lost me as a customer for life back in ’87. I must, however, tip my hat to someone who changes cars more often than most people change their underwear. 🙂
Wow, I remember when I thought a 2 ton vehicle was big/heavy.
BTW, the “magazine” Trucker’s News recently had a story about a tractor-trailer driver who nearly destroyed a bridge. The bridge was rated at 6 tons MAXIMUM and she (supposedly?) was unsure how heavy her truck and it’s load of water bottles weighed.
With the Highlander being so popular, I’m surprised it’s one of the few Toyotas that no one in my extended family owns, or has ever owned. RAV4s? Yes, Highlanders? No.
The tractor-trailer driver was even more stupid than you report: she actually did not know how many pounds are in a ton.
https://www.washingtonpost.com/news/dr-gridlock/wp/2015/12/29/woman-drives-30-ton-tractor-trailer-across-bridge-with-a-6-ton-limit-guess-what-happens/
I had heard of that story, but looking at that link and it is more stupid/incredible than I thought – she didn’t even realise the truck was far too tall for the bridge! Just wow.
Also Howard, it would seem that the Highlander is lighter than Jim’s old 300!
We like that stretch of Highway 287 from Laramie to Fort Collins quite a bit, having discovered it when our daughter lived in Erie. We’ve driven it both in the Accord and a rented 6-cylinder Mustang, both of which do well on such roads.
Jim, what a handsome “car”, I also like the Creme Brulee even though I usually prefer a more vibrant color. A family member had (he has a short vehicular attention span like you) a 2014 model with the Cromatec wheels, and you should be glad you don’t have them as they got all chipped up. I’m amazed that the plastic cover is not replaceable. His car also had the captain’s chairs, and as an occasional 3rd row passenger, I found this set up very accommodating. So, I hope your family enjoys this addition to your fleet, and I look forward to your next COAL, although I think you’re caught up for the moment.
I’m not an SUV guy, but my girlfriend is. She’s partial to Dodges but I’m doing everything I can to steer her away from the Journey and Durango because they seem to have poor reliability reputations. I’ve been thinking of the Highlander, and your review pushes me over the edge. Actually, your photo of the glass portion of the back door being up is what did it, as that is an enormously useful feature that so many automakers skip.
Yeah, I really like that window, but IIRC your girlfriend really liked the Crosley! The Highlander drives very carlike, definitely more so than the Durango.
How do they ride, though? Not just this generation of Highlander but all of them. I can’t say I’ve ever had any seat time in one. I’m sure they’ve gotten more harsh with each generation, as is the case with all modern cars. I did rent a Land Cruiser a couple of years ago and that was beautifully smooth and absorbent, almost enough to make up for the school-bus-sized footprint and 12 MPG in the city.
Whenever my mind wanders into dirty, dirty fantasies about owning a CUV/SUV (yes, I realize they are useful for some people, but as a single 20-something who works in an office with a modest income and has no kids, it would be a vulgar waste), the only reason I could really justify it to myself would be if it was insanely comfortable. I don’t “need” anything above a compact sedan, but the choppy ride quality inherent to all sub-3000 pound cars with 100-inch wheelbases does wear on you over time.
I know many people with Chevy Equinoxes, which are very affordable, but those ride absolutely terrible. I’ve driven the current Ford Escape and the larger Traverse/Enclave, those are better but still not great. Why do so many people buy such bulky ill-handling vehicles over the equivalent sedan if they aren’t even any more comfortable? Just for fashion? (and I’m talking about the people who don’t haul things regularly or have kids, many of whom buy CUVs) Toyotas have some of the smoothest and quiet rides in my experience, so I’d imagine the Highlander is one of the better ones? It looks useful and better packaged at the very least – I’m not impressed by the interior room of most CUVs given their exterior footprints.
Because many (if not most) CUV buyers came not from sedans, but trucks or truck-based SUVs. Compared to those, a CUV is (or at least, can be) very plush. Growing up in pickup trucks and minivans, I speak for myself and a lot of other people who just aren’t comfortable sitting low to the ground in a sedan. A natural seating position is eminently more comfortable.
Compared to BOF vehicles, CUVs have a lot of interior room. And CUVs have improved their ride greatly since the late ’90s, at least in my experience. My mother’s new CR-V can be driven much faster on washboard gravel roads than my ’02 Mazda before the rear seat passengers start to complain. Cars get a choppier ride each generation (partially) because of lower-profile tires.
To answer the first question, though, the Highlander seems to rate just below the Sienna in ride quality. In other words, right where a mid-size CUV should be.
The Land Cruiser, though, is incomparable. It’s a BOF SUV with no expense spared in passenger comfort.
Toyota Land Cruiser WB: 112.2″
Blue Bird All-American WB (72-pass.): 232″
112.2 != 232
Nice looking vehicle. One of my favorite new Toyota designs. I especially like the color you chose. I think black is the best interior color with that exterior color. I recently rode in a 2016 and was very impressed with the fit and finish.
I am surprised that you didn’t have the Acura MDX on your list of choices as well. Seems like it would have fit in nicely with what you were looking for.
I did look at the MDX. Very nice especially in that olive green color and the interior is great but A) the local dealers the closest of which is almost an hour away were very proud of them B) sticker price was quite a bit more to begin with and C) another one below 6000 GVWR putting it into an even worse position. At the end of the day it would have been well over a $10k difference and the new for 2016 9speed is not being spoken of affectionately either.
So not this time.
Hmmm… We don’t get these in Europe, the nearest are the Land Cruiser or Lexus RX and they hardly sell any, so Toyota would be wise to keep those in the US. Tax advantages do exist here (Austria) for I think any vehicle provided it is used as a part of your business – need to check whether tax on light trucks is lower (so perhaps a VW T6 classified as such, would be a sort of an equivalent).
There’s also the RAV4, the current one is substantially bigger than the previous generations. Very thin on the ground though, unlike the older types.
The Land Cruiser 150-series (Prado) is quite common here. Yet only as a commercial vehicle. They’re capable all-round trailer towers, up to 3,500 kg (7,700 lbs) towing capacity for the factory 150-series. The older 90- and 120-series can also be seen on the roads frequently.
All in all it’s very orderly: either a RAV4 soft-roader or the real McCoy Land Cruiser 150-series and the big V8. Or that other real McCoy of course, the HiLux.
Below a Land Cruiser 150-series, registered as a commercial vehicle, in its element.
I hate to mention this, and I am not sure I am 100% correct, but the IRS depreciation scheme is for SUV’s OVER 6,000lbs….so 6,000 lbs doesn’t count but 6,001 is fine. At least that’s from every source I’ve ever read, and my CPA poo pooed a 6,000 lb GVWR Infiniti QX60 hybrid I had my heart set on. But yes, the deduction works well and is a huge benefit, whether I am right on that point or not. And actually the benefit is even more than you describe…..
For a new SUV of over 6,000 lbs GVWR, you immediately expense the first $25,000.00 AND one-half of the balance of the purchase price, including TTT fees. So, my small business in December bought a 2016 Porsche Cayenne. After 10% discount off sticker, plus TTT, it was $68,000.00. You expense the first $25,000, PLUS one half the balance or $21,500.00, for a total expense of $46,500.00. The exact tax benefit depends on your tax bracket, but let’s say you pay 40% between federal and state, probably a conservative estimate. I reduced my tax bill an actual, real $18,600.00. The Porsche was, in effect, $49,400.00. Yes, I spent the money on the car, but that $18,600.00 was gone to Uncle Sam regardless, if I did nothing.
The catch, if there is one, is that you are pulling forward your depreciation on the vehicle and you have less depreciation over the 5 year “tax life” of the asset. Over the 5 years you would depreciate a regular passenger vehicle, I will depreciate the balance or $68,000-$46,500=$21,500. So the benefit in future years is less. But the up front discount on your tax bill is nice.
I did this in 2011 on a new LR4, so for tax year 2015 we will take the final small depreciation. For those of you thinking this is too kind to businesses, when/if I sell the LR4 I paid for, I will have to pay capital gains tax on the proceeds from the sale. So I’ll get taxed again on the car I already bought and paid for. Largely due to this, I’m keeping it for an adult child to drive.
I think you may be correct after reviewing some correspondence, article has been edited a bit, thanks! Will confirm in the morning.
We looked at these a bit, but like most CUVs we found them disappointing for 3 kids. Back seat is tiny, there’s very little storage when it is in use, and the console intrudes on the center middle position.
From what I’ve gathered about 3-row midsize CUVs, the 3rd row is not for daily use.
If you have more than 2 kids, you almost “have” to get a truly full-size CUV, which is almost entirely the domain of General Motors. Ford has the Explorer and Flex, but the Explorer can’t compare to GM’s Lambda CUVs for third-row seat comfort (that extra 6″ of WB really helps). The Flex is definitely on par with the Traverse/Acadia/Enclave, but a lot of people are put off by its styling.
It’s not huge but it is fine for either the 6 or the 8year old and the 12year old in a pinch. Having the walk-through in the second row is huge as while it does reduce a seat, it makes it MUCH easier to access the third row. It also makes the third row less claustrophobic.
That being said, I’m the first to admit that a minivan is by far the best option if required to frequently haul more than 4 people, followed by a full-size 3-row SUV, then it gets worse as you get smaller.
We are glad to have two 3-row SUV’s at present and don’t often have all five of us in the car together anymore.
The Flex surprised me. It was roomy for a CUV, drove very well, and had a well thought out interior. But it was also quite a bit more expensive and still a lot smaller than a comparable minivan.
For pure practicality with 3 kids, reliability record, ease of use, and future resale value for a day to day vehicle (hereby excluding the argument for large tow-rigs for those that use their huge boat and camping trailer equipment every weekend), I do not believe that there is a better option than the Sienna AWD (if you need AWD). All others vehicles with three rows are pretenders and have a greater or lesser set of compromises in comparison but compromises nonetheless.
Sienna AWD is a nice choice, but even in Minnesota I haven’t ever really had issues with FWD vans, except for towing. There were rumors the new Pacifica would bring back AWD to Chrysler, but no word at the release last week.
Interesting read as always Jim. My closest comparison is a long trip in a Ford Territory hire car a few years back, a very similar vehicle although the Highlander is a bit larger now.
A good point of the Territory is that part of the tailgate lifts with the rear glass, to lower the load lip that is pretty high on a lot of CUVs that have this feature. It also has the adjustable second row, which was even available if you didn’t have the third row of seats in the base model. The other claim to fame is how well it drives, I took it over the Bells Line of Road through the Blue Mountains west of Sydney with is popular with sports bikes, and it was very enjoyable. From memory the 4.0L/4sp auto got 25mpg on a mostly highway trip.
Forgot to post the picture illustrating the half-hatch opening
Nice write-up, Jim. We purchased a 2015 LE, AWD, a few months back, to replace our 2006 LE FWD. In comparison, the 2015 is way more refined. It has a more planted feel and less wind noise on the highway. It does, as you stated, drive like, well, a Toyota……nothing earth shattering, but quite competent. The engine is indeed a little louder than I expected. Maybe due to the timing chain versus the belt in the 2006 with a 3.3L?
We plan to keep it for a long time. Heck, it was only the 3rd brand new vehicle I’ve ever purchased…….. the most expensive, too.
Very nice! Coincidentally, my BIL just bought a new Honda Pilot last evening. Proving that there are Honda people and Toyota people. Actually, I was surprised that he didn’t go with the Highlander because he has been very happy with an Avalon for several years.
That color reminds me of the one on my 96 Odyssey that was neither gold nor silver. I found that it practically eliminated the need for carwashes.
The Highlander is an excellent SUV, I got one as a dealer loaner. It handles well, brakes well and has accurate, direct steering. It moves from a standstill very quickly. When one punches the gas, the engine roar sounds like a hot-rod. I really enjoyed driving it and I didn’t think I would ever like an SUV that much. They are worth the money.
My brother just got one of these as a company car; here in oz it’s a Kluger. I haven’t spent much time in it, but I think the styling works and was impressed with the front passenger seat spaciousness.
Nice. It is spacious in the front, probably at least as much as our GL. The seating position is different though, in the Highlander you are sitting physically lower than the GL compared to the road but you are sitting higher within the body of the vehicle if that makes sense. Headroom is a non-issue in either.
As an aside, what is a “Kluger”? Does it have a meaning in your part of the world? I tried looking it up and couldn’t find anything except for the Urban Dictionary definition which I am pretty sure Toyota did not intend.
Seating stance makes sense.
No meaning that I know of. Just looked it up. hehehe
Onomatopoeically speaking, it’s too close to ‘loogie’ (as in hucking) for my… taste.
Congrats Jim! If you were a long-term car keeper (and apparently you’re not), the Highlander will easily go 10-15 years with proper upkeep. Resale is astounding.
I’ve always been a Highlander fan….we got one when they first came out, a base 4 cylinder, and with the exception of no sunroof or power seat (life is too short to deny yourself either), I loved that thing! Unfortunately after 6 years and 100k miles my wife wanted something more stylish so we bought an Edge. Stylish yes, reliable no.
Last month as we shopped to replace the Edge I tried to get her to look at the new Highlander, but her mind was made up that she was going to get a Lexus or Audi. An RX it is.
The Highlander Hybrid is astounding in it’s own right. They don’t make that many, and very hard to find on the ground.
Good choice on color – my Trooper is a silver/gold mix, and I really wanted my Outback in that platinum except I couldn’t get a black interior. That color shows the design lines well.
You phrased the headlights/taillights well – I prefer ‘warts’….still not a fan of that style.
10-15 years on a Jim Klein car – HaHaHaHaHaHaHaHa! 🙂
Interesting story and good summary on the car and its ownership.
One aspect of car buying in the US that is different to the UK is the idea o driving tot he dealer in the old one, doing some paperwork and driving home the same day in the new one. We always need about a week to get all the finance or payment, registration, insurance and so on sorted out. Plus the time to take all the stuff out of the old car.
One question Jim – is this an American car (as in built or at least assembled in the US) and if so how American is it seen to be?
It is built in the U.S. (in Indiana, which is where the CC branch office is located) but I still think of it as a Japanese car much in the same vein that I think of our Mercedes as a German car even though that was built in Alabama due to the “feel” of the car. I do not believe that the average person knows where their car is built, no matter the manufacturer.
Japanese cars are very accepted here in Colorado and everywhere else that I’ve lived in the US (mainly California). Parts of the upper midwest may feel different in that regard for obvious reasons.
My personal opinion is that while at the end of the day the profit from the Toyota may end up in Japan at HQ, the actual assembly of the vehicle as well as that of many of its components takes place right here and employs a lot of Americans. On that level I think that a lot of the Value Added dollars stay right here, which is good, and in my mind makes it more beneficial to my fellow taxpayers than if I were to buy a Ford that may be built in Mexico for example. I don’t really care that much that the development money and the profit stay here when the labor is going elsewhere. I believe that the labor and materials portion benefits a greater number of people to a greater degree than the development and profit dollars do.
In short, I believe a Toyota built in Indiana or a Honda from Ohio is more “American” in principle (as opposed to feel) than a Ford that is assembled in Mexico or for that matter my old Chrysler (car assembled in Canada, engine from Mexico, engineering in Michigan but the HQ is in the Netherlands.)
I’ve always been more management than labor in my career(s) but I generally support labor rather than management in my purchasing decisions if that makes any sense.
How do you guys feel about a Honda built at Swindon in the UK, does the average guy know where it’s made and is that a factor as compared to a VW built in Bratislava for example?
To add to this, in order to answer Roger’s question “how American is it seen to be?”, keep in mind that this and the previous generation Highlander are not sold in Japan, and were clearly designed primarily for the US market, as well as China, the only two places it is built.
I don’t know how many are sold in China and how much influence that market had in its design, but I’d say the Highlander presents itself as very much an American vehicle. This also applies to a number of other Japanese vehicles, such as the Toyota Camry, the Sienna minivan, the Sequoia SUV, the Tacoma and Tundra trucks; these are all designed exclusively or primarily for the NA market.
A similar situation is the case for a number of Honda’s comparable vehicles; the Accord, Pilot, Odyssey, Ridgeline, etc.
The big Japanese derive a very large percentage of their profits in the US, and design and build their vehicles with this market in mind, most of all. It’s part of why they don’t do so well in Europe; these companies have shifted so much of their focus to NA, and also China. The Japanese market has been difficult, as has the European. So they go where the big profits are, and build for those markets. Fortunately, the US and China markets like many of the same type of vehicles, including big SUV/CUVs.
Thanks Jim, Paul.
For the avoidance of any doubt, I’m not querying your patriotism or challenging your choice on that basis.
To answer your fair reverse questions; obviously most of the historic British brand names have now gone and the only remaining popular British brands still building in the UK are Vauxhall (the Astra only) and MINI, which is arguably premium anyway. Ford does not manufacture cars in the UK, but does built engines (petrol and diesel) in qtys greater than the cars ever were. Peugeot (formerly Chrysler Europe, ex Rootes) ended in 2006. The importance in “buying British” is nothing like as high profile or even used as reason for choosing a model as it was (“at least my Allegro is British” etc)
Apart from the premium brands (MINI, Jaguar, Land Rover, Rolls, etc) and the Astra, all manufacture is now by the Japanese – Nissan, Toyota and Honda all have successful plants in the UK. Nissan produce over 500,000 cars here, and just keeps growing and is a huge successful success story.
In terms of buyer knowledge and perception, brands fall into 3 groups – known as British and actively (maybe subtly) promoted as British (Jaguar, Land Rover, Rolls etc); brands with clear national links (BMW, Mercedes, Renault, Fiat, Citroen, Volvo for example) and many buyers of these would be surprised to hear of the origins of their cars – how many drivers Fiat 500 know their cars are assembled in Poland, or the Volvo XC60 in Belgium for example?
And thirdly what we might call international brands – Ford, GM, Toyota, Nissan, Honda, maybe VW brands like Skoda and SEAT.
Many UK Nissan Qashqai and Juke drivers know of the UK assembly, but for a Toyota Auris or Honda Civic that is less likely, and some drivers will still think their Ford Fiesta came from Dagenham.
For the record, my Fiesta is nominally German, with an English engine and a French gearbox. My previous Focuses were also German, but with Welsh (petrol) engines.
You mentioned that lightly used examples are going for just as much as, or more than, new Highlanders after incentives.
Who, exactly, are these people who are paying as much or more for a used vehicle than a new one? Why on earth would you do that? If there is a severe supply restriction on the new one, then maybe, but in this case…just why?
I believe it all depends on your credit score. A high enough credit score gets you financed on a new one at a fairly low interest rate. Those with a lower credit score might get the chance to finance a similar late model used one but with a substantially higher interest rate. It’s a risk/reward ratio thing. The person with the lower credit score finds out the hard way they are not in a stable enough financial position to negotiate on price or interest rate.
Or… a high payoff on the trade in, so the dealer boosts the selling price to offer enough trade in to cover the payoff. Can’t do that on a new one, but used anything’s fair game.
Remember, for the majority of customers, the entire transaction comes down to 1. How much down and 2. How much a month.
Well I believe they way he put it is that the asking price on the used car is as much as the new car less the incentives.
That does not mean that the cars actually sell for that asking price to every buyer. But every once in a while a buyer will walk in and pay the outrageous asking price, so they continue to price it like that and let the buyer that asks for a discount have it and still make a decent profit.
Also as mentioned a lot of those incentives are based on your credit rating. So if you don’t qualify for the special interest rate and thus don’t use the captive finance arm you don’t get the extra $1000 rebate.
You also have the buyer that is convinced that the used car is always a better deal and doesn’t even consider or price a new car. They go to a website and the first thing they do is check the used box and then start their search.
As referenced in my earlier comment, I did sell my trusty Avalon, and for a decent price, too! We ordered our Highlander Limited and waited about 8 weeks for it.
We are very pleased with it so far. One of the things that made me even think about buying one was sitting in one that was in a Toyota display at a county fair. This was a vehicle that never even got a second glance from me until I was inside one. The seating comfort is exactly what I thought it would be, we love the little shelf and the accent lighting in the door panels. I love the steering, heavily assisted at parking lot speed and much less assisted at highway speed. It is very quiet inside and has a very solid feel, much better than a Ford Explorer that I was recently in.
No buyer’s remorse here!
Bought previous generation Highlander. 2013 to be precise a Sport with decent options. Mostly wife driven. That was after 3 new SUV/ CUV. In order 2001 Mazda Tribute, 2004 Jeep Liberty and 2008 Hyundai Santa Fe. All decent vehicles except for jeep. Built to a price. Toyota is our last new vehicle and I’m hoping the reputation is true.
Thanks for the update. I bought a new LE Plus AWD back in June and have never been happier with a new vehicle purchase. I’ve really liked every generation of the Highlander but was always put off by the relatively high price for such plain practical transportation. I know several people who have them and they all love them. I get it now. It’s a roomy(without being unnecessary bulky), comfy, practical, wagon that sits at a sensible height.
The new power train is slick and seems to provide better fuel economy than before. That being said, I don’t like the engine auto stop and disable it. I average about 21 to 22 mpg in my stop and go slog to and from work and hit 27 on the one trip over 100 miles I’ve taken thus far. That trip was hilly to mountainous rural highways under 60 mph for the most part. I have a high speed Interstate trip planned for November, we’ll see how it does in that kind of driving. I doubt I’ll hit the EPA cycle 27 highway mpg but who knows. The 8 speed transmission has two overdrive gears with 8th gear being very tall. It’s odd to be driving around at 40 to 50 mph city speeds with the engine at just over 1000 rpm but it works without calling attention to itself so I’m impressed. We’ve come a long way from 1 and 2 speed automatic transmissions!
Pearline.
I am curious if you even considered the Hybrid version, it does say that you considered the VW Hybrid and Toyota is the mfg associated with making Hybrids. The mpg goes from 20/24 to 28/28 and you get 10 extra ponies. Yes that adds to the price but at least on Toyotas you get a lot of that premium back when you sell in addition to the savings on fuel.
I don’t know if I’d trust a VW Hybrid long term, but would have not qualms about a Toyota and in fact I briefly considered a Highlander Hybrid recently.
At the time the Hybrid was only on the top of the line and as such was about $15k more IIRC than the XLE we were looking at. I didn’t find that premium attractive along with reviews not being as enamored with that awd system compared to the regular one. (Electric motors in the back vs a more conventional mechanical connection to the front).
Had the XLE been available as a hybrid back then especially with as small a premium as they are asking now I would have considered it much more seriously. As it was I already didn’t want the features of the Limited let alone the Limited Platinum version that formed the basis of the hybrid. Used examples were almost nonexistent at the time and still sellling for big money.
The VW Touareg Hybrid would have been a used model that was sellling in the mid-to-upper 20’s at the time, incorporating a huge depreciation hit vs its new price.
Yeah they did like to force you into a top trim to get the Hybrid version for many years.
It is interesting that at the time they bill the standard Highlander as AWD while they bill the Hybrid as (on demand) 4WD. I have heard that the rear motor may be a bit on the weak side/lacking enough torque multiplication.
I suspect that people being suspect of a VW hybrid is why its depreciation was so high compared to the gold standard Toyota hybrids.
I bought one of these last year to replace my ’12 Buick Enclave after numerous problems. So far, it has been great to drive, does its job well, and has had zero issues.
I used to hate on “boring” Toyotas all the time, but after a string of troublesome Volvos and a nasty Buick, I think I’ve finally succumbed to Toyotahood. There’s definitely something to be said about a car that is pleasant enough to drive and never creates drama.
Of course, I still keep a college-fund depleting BMW in the driveway for the weekends, but that’s a different [knuckle-busting] story…maybe it’s time to replace it with an old MR2.
The beauty of a “boring” Toyota is that while being used for 90% of the driving drudgery that can’t be gotten away from it creates more time and leaves more money to enjoy the 10% of the time in the non-boring car. Double points if the non-boring car happens to be a Toyota as well. 🙂
I enjoy my “interesting” cars as much as the next guy but no longer feel the need to just sit in traffic in something that would be much happier not sitting there.