Toyota Built a Bigger Highlander. Was That the Problem?
The 2024 Grand Highlander costs up to $62K and seats 8. But depreciation, fuel costs, and a confusing trim ladder make the math harder than Toyota wants you to think.
Want to see the exact numbers for your situation?
Run the comparison →Advertisement
Toyota Built a Bigger Highlander. Was That the Problem?
Toyota already sells a three-row SUV. It's called the Highlander, it's been around since 2001, and millions of families have bought one without complaint. So why does the 2024 Grand Highlander exist? The answer says something honest about where Toyota thinks its customers are, and it's not a flattering picture of the American car market. The Grand Highlander is longer, taller, and more expensive than the Highlander, and it slots below the 4Runner in off-road credibility and below the Sequoia in outright size. It is a vehicle that exists to fill a gap that Toyota itself created.
That is not necessarily a reason to avoid it. But it is a reason to look hard before you buy.
Who This Is Actually For (And Who Should Look Elsewhere)
If you have three kids, a dog, a stroller, and a weekend schedule that involves soccer fields and grocery runs, the Grand Highlander makes a real case for itself. Third-row legroom is genuinely usable for adults on short trips, which is more than you can say for most competitors in this class. Cargo space behind the third row is 20.6 cubic feet, which is decent.
If you want to tow a boat or a camper, stop here. The max tow rating is 5,000 pounds with the base engine, bumping to 5,500 pounds with the hybrid. That's fine for a small trailer, not fine for anything serious.
If you're a single adult or a couple without kids, skip this entirely. It's a people-mover. That's what it does.
The Powertrain Situation: Three Engines, One Clear Winner
Toyota offers three powertrain options for the Grand Highlander. You should know about all of them, but one is obviously the right choice.
2.4L Turbocharged 4-Cylinder (265 hp): The base engine. It moves the car adequately. Front-wheel drive or all-wheel drive available. EPA-rated at 23 city / 28 highway / 25 combined with AWD. Acceptable, not impressive.
2.4L Turbo + Electric Hybrid (362 hp, front-wheel drive only): This is the smart pick. More power than the base engine, better fuel economy, and it doesn't carry the price premium of the top-tier plug-in. EPA-rated at 35 city / 34 highway / 35 combined. At 15,000 miles per year, that's roughly 430 gallons of fuel versus 600 gallons for the base AWD. At current gas prices near $3.50 per gallon, you save around $590 per year.
2.5L Plug-In Hybrid (PHEV, 362 hp AWD): Available on the top Platinum trim. It offers about 37 miles of electric-only range. If you have a short commute and a place to charge, it could make financial sense. If you don't charge it regularly, you're hauling around a heavy battery pack for no benefit.
Trim Levels and What You're Actually Paying For
Toyota offers five trims. The jump from XLE to Limited is where most buyers will spend their real decision-making energy. You can build and price on Toyota's site here.
| Trim | MSRP (Base) | What You Actually Get |
|---|---|---|
| XLE | $43,870 | 8-inch infotainment, Toyota Safety Sense 3.0, cloth seats, 18-inch wheels, wireless Apple CarPlay and Android Auto |
| XLE Premium | $47,170 | 12.3-inch screen upgrade, power-folding third row, SofTex (faux leather) seats, panoramic sunroof |
| Limited | $51,985 | Genuine leather seats, JBL audio, 360-degree camera, ventilated front seats, 20-inch wheels |
| Platinum | $56,990 | Max Tech package option, larger screens, head-up display, rear-seat entertainment available |
| Platinum PHEV | $62,170 | Everything above plus plug-in hybrid drivetrain, AWD standard |
All prices are before destination charges, dealer markups (which still exist on popular Toyotas), and any add-on packages. Budget an extra $1,200 to $1,500 for destination and at least a conversation about what your dealer has added to the sticker.
What Toyota Got Right
The interior is the strongest argument for this car. Third-row access is easier than in most three-row SUVs because the vehicle is simply bigger, so the second-row seats don't have to fold as dramatically to let people through. Third-row passengers sit at a reasonable height, not in a footwell.
Toyota Safety Sense 3.0 comes standard on every trim. That means automatic emergency braking, lane departure alert, adaptive cruise control, and automatic high beams from the base model up. You shouldn't have to pay extra for a system that prevents crashes. Toyota doesn't make you.
The hybrid powertrain is genuinely quiet and smooth. Around town, the transition between gas and electric power is barely noticeable, which matters if you're doing a lot of stop-and-go driving.
Build quality feels solid. The materials in the Limited and above are good. The XLE and XLE Premium use cheaper plastics in places where you'll notice them.
What Toyota Got Wrong
The price ladder is aggressive. Sixty-two thousand dollars for a family SUV is not unusual in 2024, but it is a number that should make you pause. At that price, you are competing with German options that carry better residual values.
The base 2.4T engine doesn't feel like enough car for the size. Merging onto a highway with a full load of passengers reveals the limit quickly. If you're cross-shopping, test drive the hybrid version. The base engine is technically available, but it's the compromise you make when you're trying to keep the sticker under $44,000.
Front-wheel drive on the standard hybrid is a real limitation for buyers in the Snow Belt. All-wheel drive is only available on the base gas engine and the top PHEV. Toyota made this choice for efficiency reasons, and the math on the fuel savings is real, but it will cost the hybrid some sales in colder climates.
The third-row seats, despite being better than most in class, still fold flat for cargo manually. Power-folding third rows exist on competitors at lower prices.
Safety Ratings: Mostly Good, One Caveat
The NHTSA gave the 2024 Grand Highlander a 5-star overall rating, which is the top score. That's meaningful.
The IIHS named the 2024 Grand Highlander a Top Safety Pick+, which is also the highest recognition available. The headlights on higher trims tested well, which is a specific detail that actually matters at night.
One practical note: the IIHS small overlap front test, which simulates hitting a narrow object like a tree or pole at the driver's corner, is where many vehicles fall short. The Grand Highlander performed acceptably here.
This is a safe vehicle. That part is not in question.
What Year One Actually Costs: The XLE Premium Math
Most people look at the monthly payment and stop there. That's how you end up surprised. Here's what ownership actually looks like in year one for the XLE Premium trim at around $47,000 out the door.
Depreciation: New cars lose 15 to 22 percent of their value in the first year. Toyotas hold value better than average, so call it 15 percent. On a $47,000 vehicle, that's roughly $7,050 gone the moment you drive it. This is the largest cost most buyers never think about.
Fuel (15,000 miles, hybrid model): At 35 MPG combined and $3.50 per gallon, that's approximately 429 gallons, or $1,500 for the year. In the base gas AWD trim, closer to $2,100.
Insurance: This varies enormously by driver age, location, and history. For a family-oriented three-row SUV in this price range, expect $1,800 to $2,800 per year for full coverage. Get at least three quotes.
First Service: Toyota recommends oil changes every 10,000 miles under normal conditions. First service at a dealership typically runs $100 to $150. Simple.
Year-One Total (estimate): $10,450 to $13,500, not including the purchase itself. Before the loan payment. That number is not unusual for a vehicle in this class, but it deserves to be said plainly.
How It Stacks Up Against the Competition
Kia Telluride: The Telluride offers a more premium interior feel at a lower price and has consistently won comparison tests since 2020. The Grand Highlander wins on hybrid efficiency and Toyota's historically stronger reliability record. It loses on interior design and perceived value at equivalent trims.
Honda Pilot: The Pilot has a similar footprint and a genuinely useful third row. The Grand Highlander wins on powertrain options, particularly the hybrid. It loses on cargo flexibility, since the Pilot's Magic Slide seats offer seating configurations Toyota can't match.
Volkswagen Atlas: The Atlas undercuts the Grand Highlander on price at most trim levels and offers a genuinely spacious third row. The Grand Highlander wins on long-term reliability confidence. It loses on standard equipment per dollar, where VW often edges it out on paper.
The Verdict: Buy It If, Skip It If
Buy the Grand Highlander if you have a family of five or more, want Toyota's reliability record, and are willing to spend the money for the hybrid model. The XLE Premium Hybrid at roughly $51,000 to $53,000 out the door is probably the version that makes the most sense for most buyers. You get the efficiency, the good safety scores, and enough features without climbing to the prices that push into Lexus territory.
Skip it if you're a family of four or fewer. The regular Highlander is cheaper, nearly as capable for most real-world use, and gives up less than the price difference suggests. Skip it also if towing anything substantial is on your list, because 5,500 pounds is not a serious tow rating for a truck-adjacent price.
And if someone at a dealership is charging more than $2,000 over MSRP, walk. There are enough of these on lots now that you don't have to pay a markup premium the way buyers did in 2021 and 2022. This is a good vehicle at its intended price. It is not a good vehicle at any price someone decides to invent.
Advertisement