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The Toyota RAV4 and the BMW Z3.

One’s long on function, the other on fun.

Both are small and both fill a void. The RAV4 meets the need for an affordable four-wheeler able to pass the fuel pump without whining; the Z3, to pass Detroit’s five-passenger sedans in two-seat, open-top style.

Except for the Jeep Wrangler and the Chevrolet Geo Tracker, automakers have focused on larger compact SUVs that cost a year’s salary or more.

So here comes Toyota with a subcompact $15,000 to $18,000 RAV4 SUV at a time when many youthful SUV intenders don’t have $20,000 to $30,000 for club membership.

Toyota went to the parts bin to cut costs. RAV4 uses the same platform as the all-wheel-drive Celica, last sold in 1993, and the 4-cylinder engine last used on the previous generation Camry.

The RAV4 (Recreational Activity Vehicle with 4-wheel drive) comes with two or four doors, two- or four-wheel drive. The 2WD models are front, not rear drive.

We tested the 1996 RAV4 in two-door, full-time 4WD form and confess that the four-door would be our choice, based on wheelbase (94.9 inches versus 86.6) and length (162 inches versus 145.9), which translates into more room and should mean better ride and handling.

The two-door offers optional removable glass sunroof panels ($600) that the four-door doesn’t, but two extra doors sure would help rear seat entry/exit.

RAV4’s primary attraction is that like its bigger bretheren it has 4WD pulling power for driving in snow, off-roading, or hill climbing, although we’d bypass Baja and the Grand Tetons in this subcompact 4-cylinder unit.

Despite small dimensions, it offers dual air bags and anti-lock brakes (a $590 option) like the big boys. Two bags and ABS don’t make the RAV4 any bigger, but they do serve to erase some of the fears about size.

The RAV4 has one benefit the big ones lack–the ability to sip fuel rather than gulp an octane elixir. Its 2-liter, 120-horsepower, 16-valve 4-cylinder delivers 22 miles per gallon in the city/31 m.p.g. on the highway.

The 2-liter has adequate pep, but m.p.g., not m.p.h., is the reason you’d consider an RAV4. You can expect power upgrades in the future. The 2-liter is teamed with a very smooth 5-speed manual. You can’t get automatic with the two-door 4WD model.

RAV4 pluses include 16-inch tires for better roadability, a swing-out rear door that opens wide to make loading/unloading very easy, fold-up-and-over rear seats to increase cargo capacity and cupholders for front- and rear-seat occupants.

But it has faults. You have to buy option packages at $185 to $530 to get a protective cover for the spare tire on the rear door. And there are no 4WD IDs on the vehicle–a badge of honor in the Snow Belt and a handy tidbit for the buyer whose first encounter with a RAV4 will be in the used market.

And while RAV4 is designed to give consumers a low-cost alternative to compact and bigger SUVs, the options can drive the price up well past the $20,000 mark, as illustrated by a display model with a $23,000 sticker at the recent Chicago Auto Show.

An upgrade package, for example, with power windows/door locks/mirrors/digital clock/AM-FM with cassette runs $1,280 (two-door) to $1,460 (four-door).

RAV4 starts at $14,948 for a two-door, 2WD model with 5-speed manual and $18,098 for a four-door, 4WD with 4-speed automatic. The test vehicle started at $16,348.

RAV4 is a high-mileage commuter that performs whether the road is clear or cluttered. It’s a youngster’s first vehicle; the first new vehicle for the young family; the second or third vehicle for the family with grown kids who might limit its use based on weather; or, the vacation-retreat or retirement-home vehicle for folks who want to limit purchase price as well as gasoline expenses.

Though there are only token offerings in the subcompact SUV segment now, Pontiac is developing a small SUV to be built off a car platform, perhaps one from GM’s Opel subsidiary in Europe. Ford hints it will have a small SUV soon, perhaps from its Ford of Europe operations and Honda is talking about a Jeep Cherokee-size SUV next year for less than $20,000. Subaru has its sights set on bringing back an Amigo-sized SUV to be built in the U.S. for less than $20,000, too.

>> 1996 Toyota RAV4
Wheelbase: 96.3 inches Length: 158.5 inches Engine: 1.9-liter,138-h.p., 4-cylinder Transmission: 5-speed manual; 4-speed automatic optional at $975 EPA mileage: 23 m.p.g. city/31 m.p.g. highway Base price: $28,750 Price as tested: $28,750. Add $570 for freight. Pluses: Dual air bags and anti-lock brakes standard, traction control coming as an $1,100 option later this month. Roomy comfortable seats. Easy-down top. Minuses: Removable hardtop not available until 1997. Canvas top noisy. 4-cylinder engine two cylinders short of optimal power. Cupholders from discount surplus store. >>