I tested the world’s best-selling car – then worked out whether you should finance or lease it

The Toyota RAV4 sold more than one million units worldwide in 2025, making it one of the world’s best-selling cars, according to data platform Statista. It’s not hard to see why: it’s practical for families, easy to live with and has a brilliant plug-in hybrid engine.

Having spent some time behind the wheel of a RAV4 myself, I started wondering: would it be better to finance or lease this car?

So, I crunched the numbers for a new Toyota RAV4 over three years and 24,000 miles to find out what you could really expect to pay on a PCP finance deal. I’ll also look at whether leasing could work out cheaper than buying.

Remember, you can buy a brand new or used car right here on Carwow. And you can sell your car, too. We’re here to help you through every step of your car-changing journey.

How much does it cost on PCP finance?

First, let’s look at the cost of buying a Toyota RAV4.

For our calculations, we’ve used the entry-level Icon version. It comes with a 272hp 2.5-litre plug-in hybrid engine, with prices starting from £44,195.

Of course, most people don’t hand over £44,195 in cash when they buy a new car. Instead, they’ll usually use some form of finance, which means the amount you actually pay can be higher once interest and fees are taken into account.

PCP lets you spread the cost of a new car through monthly payments that cover its depreciation, plus interest and fees. At the end, you can hand it back, pay a final lump sum to keep it, or put any equity towards another car.

For this example, I’ve used Toyota’s own finance figures and assumed a £5,000 deposit, a three-year agreement and 8,000 miles of driving each year. I’ve also assumed that the RAV4 is handed back at the end of the three-year agreement rather than bought outright.

Here’s a breakdown of the costs you could expect. At the time of writing, Toyota’s RAV4 finance offer had a 6.9% APR and a 10.84% fixed annual interest rate. That’s why I’ve included the total amount payable, which shows how much you’d pay over the full agreement. Toyota was also offering a £5,500 finance contribution, which I’ve factored into the figures.

To get the total cost over three years when you return the car, you take the total amount payable and subtract the optional final payment.

But is it cheaper to lease a Toyota RAV4?

Leasing can be a good option if you like driving a new car every few years and want predictable monthly payments without committing to owning the car.

I’ve calculated the cost of leasing a new RAV4 to see how it compares with PCP. The leasing figures are based on relevant Carwow deals available at the time of writing, assuming a three-year term and 8,000 miles per year.

Here’s a breakdown of costs for a lease deal found on Carwow for the RAV4:

The calculations show that you could save around £5,300 over three years by leasing the RAV4 rather than taking the same car on a PCP agreement.

Taken together, these figures suggest that leasing offers a lower overall cost based on the costs included in this comparison. However, it’s also important to factor in insurance, maintenance and fuel costs, as the overall cost can vary depending on your age, location, mileage, fuel economy and how well the car is maintained.

Car change? Carwow!

Looking for a new set of wheels? With Carwow you can sell your car quickly and for a fair price – as well as find great offers on your next one. Whether you’re looking to buy a car brand new, are after something used or you want to explore car leasing options, Carwow is your one stop shop for new car deals.

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