Toyota's Rav4 is short for Recreational Active Vehicle. The Rav4 looks like a small sport-utility, drives like a car and, within limits, delivers the best of both. Power comes from a 2.0-liter, four-cylinder adapted from the Celica family. It doesn't produce quite as much horsepower as the Jeep Wrangler four-cylinder, and far less torque. But the RAV4 doesn't need as much punch because our two-door, five- speed test truck was 400 pounds lighter than the Wrangler SE we were driving.

The Rav4's appeal won't be limited to the young and restless members of Generation X. I can imagine all sorts of people finding uses for a RAV4, from suburban errand-runners to commuters to small families headed out for a week in the woods.

A four-door has enough room inside for five passengers, there's a surprisingly big cargo well behind the rear seat and it's the only sport-utility in this size and price class to offer full-time all-wheel drive.

The Rav4 is better at all-terrain driving than we expected, and it's much easier to live with on a daily basis than most SUVs. With the price of larger sport-utility vehicles increasing steadily, we're going to see more of this kind of vehicle in the next few years.