If you're shopping for a three-row SUV, the Toyota Highlander is probably on your list. It's been a top seller for years, and for good reason: Toyota has built a reputation for reliability and resale value. But as a procurement analyst who tracks total cost of ownership, I want to know if the Highlander actually delivers on those promises once you look past the brand halo. Let's run the numbers.
The Case for the Highlander
The Highlander's sweet spot is the middle-of-the-road buyer. You get a comfortable ride, decent fuel economy for its size, and Toyota's proven durability. Starting around $40,000 for a gas model and $43,000 for the hybrid, it's not cheap, but it's not luxury pricing either. The hybrid version is where the value really shines: it gets an EPA-estimated 36 mpg combined, which is class-leading. Over five years, that fuel savings can offset the hybrid premium by about $1,500–$2,000 depending on gas prices. The Highlander also holds its value well. According to Kelley Blue Book's five-year depreciation data, it retains around 60% of its original value after three years and about 48% after five. That's better than many competitors like the Ford Explorer or Nissan Pathfinder.
The Hybrid Advantage
If you do a lot of city driving, the Toyota Highlander Hybrid is the smarter play. The hybrid system uses a 2.5-liter four-cylinder engine paired with electric motors for a combined 243 horsepower. That's enough for daily driving, but don't expect quick acceleration. The trade-off is fuel economy: 36 mpg combined versus the gas V6's 24 mpg. If you drive 12,000 miles a year, the hybrid saves about $400 annually in fuel costs at $3.50 per gallon. Over five years, that's $2,000. The hybrid also holds its value slightly better, so you're looking at almost no net cost premium after factoring in resale. One catch: the hybrid third row is tighter because the battery pack eats into cargo space. If you're regularly hauling adults in the back, the gas model's third row is a bit more livable.
Depreciation and Resale Value
Resale value is where the Highlander flexes its muscle. A three-year-old Toyota Highlander with 36,000 miles still sells for about $30,000–$33,000, depending on trim. That's ~60% of its original MSRP, which is excellent. Compare that to a Chevrolet Traverse, which drops to under 50% in the same timeframe. The Highlander's depreciation curve is flatter, meaning you lose less money each year. For a buyer keeping the car five to seven years, total depreciation cost is roughly $18,000–$22,000. That's competitive, but not as good as a Honda Pilot or Kia Telluride (both slightly cheaper). However, the Highlander's reliability history reduces the risk of big repair bills.
Common Complaints and Maintenance Costs
No car is perfect. The Toyota Highlander has some issues. The most common complaints center on the infotainment system: it's outdated, slow, and the screen is too far from the driver. The cabin also feels a bit cramped for a three-row SUV. Third-row access is tight, and cargo space behind the third row is only 16 cubic feet—enough for a few grocery bags. Maintenance costs are below average for the segment. ToyotaCare covers the first two years or 25,000 miles, so only oil changes after that. Over 10 years, expect to spend about $4,500 on scheduled maintenance and repairs, according to RepairPal. That's less than the Ford Explorer or Dodge Durango. The Highlander's powertrain is reliable, but the newer 2.4-liter turbo engine (replacing the V6 on 2024+ models) has some unknowns. Early reports suggest it's fine, but long-term data is thin.
How It Stacks Up Against Competitors
The Toyota Highlander competes with the Honda Pilot, Kia Telluride, Hyundai Palisade, and Subaru Ascent. The Telluride and Palisade offer more passenger space, a nicer interior, and a longer warranty for roughly the same price. The Pilot is roomier and has a more intuitive infotainment system. But the Highlander beats them all in fuel economy (hybrid) and resale value. If you plan to keep the car for 8–10 years, the Highlander's lower depreciation and known reliability give it an edge. But if you prioritize space and tech, the Telluride is a better family hauler. The Highlander is also available with all-wheel drive, which is standard on most trims and adds about $1,600 to the base price. It handles well in snow, but the ground clearance is only 8 inches—less than the Subaru Ascent's 8.7.
The Bottom Line
So is the Toyota Highlander worth it? For a buyer who values long-term reliability, strong resale, and good fuel economy (especially the hybrid), yes. The numbers work if you're planning to own the car for seven years or more. You pay a premium upfront, but you get most of it back at trade-in. Where the Highlander falls short is interior space and infotainment. If you regularly carry three kids in car seats or need to seat adults in the third row, the Kia Telluride offers more room for about the same money. And if you're on a tight budget, a used Highlander from the 2020–2023 generation (with the V6) is a smart buy—it's proven, cheaper to insure, and still has plenty of life. But for new buyers, the hybrid Highlander is the pick. The fuel savings and resale make it the most cost-effective choice in the segment. If the numbers don't work, the car doesn't work.
If you want to dig deeper, run your own numbers on insurance costs and monthly payments. The Highlander's insurance rates are about average for the class, typically $1,200–$1,500 per year for full coverage. Factor that in before you sign.