The hottest segment of the market right now is car-based SUVs. These are basically tall cars with all-wheel-drive. The idea is to combine the space and all-weather capability of an SUV with the ride and handling of a car. Toyota was one of the pioneers, with its compact RAV4 and luxurious Lexus RX 300. For 2001, Toyota introduced a Toyota version of the latter, the Highlander. The Highlander, like the RX300, is based on the Camry. Your average American loves the Camry, and loves SUVs. Is the Highlander the average American’s ideal vehicle?

Toyota Highlander Reliability

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Styling

The Highlander is actually four inches longer than the Lexus RX 300, yet costs thousands less, so something has to give. On first glance, the concession appears to be in the area of styling. The RX 300 is fairly stylish for an SUV, even pretty (too pretty?). This Highlander, in contrast, is quite homely. Actually, why mince words. To my eye, this is an ugly pseudo-truck. It’s not the boxiness I mind—I still think the ancient Cherokee looks sharp—but the proportions are all wrong. Nothing I can quite put my finger on—maybe the hood is too long, the bodysides too flat, or the windows too shallow, I can’t quite say—just wrong. The artless fender bulges aren’t winning me over, either. Even with them the Highlander doesn’t look SUV tough.

To my eye, the Highlander's styling lacks presence, a necessity with an SUV (otherwise you might as well buy a minivan). The flat surfaces suggest it is stamped out of tin. This is especially the case with lighter shades. (The red vehicle shown on this page looks better than any I've seen in person--the photographer may deserve some credit for lighting and angle.) Calty, Toyota's California design studio, couldn't have had a hand in this one. I'm not sure any designers did. Maybe it was styled by engineers?

Update: Now that the Nissan Murano, with its highly original styling, is on the road the Highlander looks even blander. Click on the hyperlink to read my review of that vehicle.

Inside the Highlander fares better. Though it’s clearly no Lexus in here, the materials are all tasteful and high in quality, especially with leather. The trim plates have the same metallic look I found attractive in the Toyota Sequoia--a great alternative to fake wood. That said, I found the similarly costly Honda Pilot to have a sharper interior.

Accommodations

Both the front and rear seats are comfortable and supportive, perhaps a bit more so than those in the Honda Pilot. Visibility is very good. To let you know this is an SUV the Highlander’s hood is high and flat, making its entire expanse clearly visible from the drivers seat. This recalled the classic old K-Blazer in my mind. Few hoods, even in SUVs, are quite so visible these days. Many people dislike how current styling often renders the edge of the hood invisible. They’ll be happy here.

Unlike the Honda, the Toyota’s shifter is on the center console and not the steering column. Gear indicators are provided both next to the lever and in the instrument cluster. This avoids an ergonomic disaster I discovered in the Honda.

Where the Pilot blows the Highlander away is in interior space. Though only four inches longer, it offers a compact third row that the Highlander does not. With this third row folded, the Honda offers considerably more cargo capacity than the Toyota. Five inches of additional width (the Pilot is a wide vehicle) also contribute to a much roomier feeling interior and cargo volume.

Both quasi-SUVs offer many interior storage compartments, though the Honda’s are a bit more innovative.

On the Road

Areas I suspected the Highlander might have an advantage were handling agility, ride quality, and noise levels, especially as the last two are typically Toyota strengths. I found the Pilot’s steering numb, and hoped the Highlander would do better here.

It does, but not enough to turn the tide. The Toyota feels like the smaller vehicle it is, more agile and generally more responsive. That said, we’re talking near (but not quite) Camry levels. You won’t feel like you’re driving a sports car. The steering does provide more feedback. At times it even provides too much feedback. When accelerating over rough patches I felt a surprisingly large amount of kickback through the wheel. Nothing dangerous or even disconcerting, just rare these days except in some highly tuned sports cars.

Ride quality and noise levels might be marginally better than the Pilot’s, but the two are close enough that I’d have to drive them back to back to be sure. The Highlander lacked the fluid luxury feel present in the luxurious Lexus lines and some Toyota cars.

The Highlander has a smaller, less powerful (by twenty horses) engine than the Pilot, but it’s also a quarter ton lighter. End result: The Highlander feels marginally quicker and more responsive. The engine also sounds a bit better to my ear than the Honda unit.

Pricing

The Highlander I drove had every option on it, pushing the sticker over 35k. This makes it as expensive as a loaded GM or Ford mid-sized SUV, and thousands more than the base Pilot EX. However, this vehicle included many options not even available with the Honda: a sunroof, skid control, a locking differential, heated seats, and a six disc in-dash CD changer. Delete these options and the sticker would drop to $32,625. This is still nearly two grand more expensive than the larger Honda.

But wait, there’s more. Honda dealers are not discounting the Pilot. In fact, many are asking more than sticker. Toyota dealers, in contrast, often knock a grand or two off the Highlander’s sticker. (Edmund's suggests a discount of just over $2,000 is the norm.) Bottom line: a comparably equipped Highlander should cost about a thousand less than the Pilot, though the margin will vary based on area of the country.

For most people the Pilot will be well worth the extra money. Especially if they want the DVD entertainment system available with the Honda. Toyota offers no such system in the Highlander.

Last Words

The Highlander faces stiff new competition in the Honda Pilot. The Highlander performs a bit better than the Honda, and is a bit more comfortable, but this cannot entirely compensate for its lack of a third row, less spacious interior, and generally less substantial feel. With the Pilot, you’ll feel like you’re getting a lot more SUV for about the same price.

Last year, I'd have given the Highlander four stars. With the Pilot now available, I feel compelled to knock it down to three. (I'd go 3.5 if that were an option.) For the same reason, I now find it hard to recommend, even though it remains a very good vehicle in many ways. A lower price would help. The final call depends on what the dealers in your area are charging. They might be charging $5,000 over sticker for the Pilot, for example. If the margin is over $2,500 in the Highlander's favor, I would recommend it for people who do not need a third row--as long as they do not find the styling as artless as I do.

To learn more about my reliability research and sign up to participate in it, or to perform thorough, up-to-date new car price comparisons, visit www.truedelta.com. A link to this website and alphabetized links to my other vehicle reviews can be found on my profile page.

Amount Paid (US$): 35000
Model Year: 2002
Model and Options: Limited with all options