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Now there’s room for two more.

For some, that’s probably the biggest news concerning the completely redesigned Toyota RAV4.

Or, perhaps it’s that a V-6 engine is now available in addition to the base four-cylinder.

But for some, the fact that the RAV4 can now tow up to 3,500 pounds just might be the kicker.

And with all three of the RAV’s new attributes put together – the ability to seat seven people instead of just five, V-6 power, and expanded towing capacity – this vehicle seems ready to appeal to a much broader range of consumers.

I’m sure that was Toyota’s idea in creating the RAV4’s third generation, which went on sale in December as a slightly late-arriving 2006 model.

With the redesign, Toyota hopes to continue moving the RAV4 from its original niche-vehicle status into a mass-appeal sport utility that can fill the needs of families looking for an affordable family hauler.

The extra power and seating capacity allow consumers to have the attributes of larger SUVs without giving up the economy of operation that a compact sport utility provides. Besides the RAV4’s starting price at just under $21,000, it offers better fuel economy that those bigger SUVs, even with the RAV’s new V-6 engine. With the V-6 and two-wheel drive, the ’06 RAV4 achieves EPA ratings of 22 miles per gallon in the city and 29 mpg on the highway. You won’t come close to finding that kind of fuel economy in a large sport utility. Even with four-wheel drive, the ratings are quite decent for the V-6 – 21 city/28 highway.

If you can live with the four-cylinder engine, which has surprisingly good power despite the new RAV’s higher weight, the EPA ratings are even better, although not dramatically. Our test vehicle for the week, the four-cylinder model with all-wheel drive, has EPA ratings of 23 city/28 highway, and the two-wheel-drive four-cylinder model is rated at 24 city/30 highway.

We found the four-cylinder to be more than adequate for our needs, but we didn’t routinely operate the vehicle with a full load of people and cargo, and we didn’t have any trailers to tow. People who need the extra power, especially to pull a trailer, should go for the V-6. But if you can get by with the four-cylinder, it’s cheaper to buy and to operate. About 70 percent of buyers are expected to choose the four-cylinder model, Toyota said.

Front-wheel-drive four-cylinder models begin at $20,905 (including freight), while front-drive V-6 versions start at $22,940. All-wheel-drive base models with four-cylinder engine begin at $22,305, while the starting price of a V-6 with all-wheel drive is $24,340. Our uplevel Limited model with all-wheel drive and a four-cylinder engine had a base price of $24,560, which included a long list of standard equipment.

On all models, the third seat is an $800 option. It was included on our test vehicle, along with a power moon roof ($900), driver and front-passenger side air bags and side-curtain air bags for the first and second rows ($650), a trailer hitch receiver ($750), and an upgraded audio system ($340), among other things.

The extras raised the sticker on our tester to a total of $28,159 (including freight), which gave us a very well-equipped family hauler for much less than the cost of a comparably equipped midsize or larger SUV.

With the makeover, the new RAV4 is 14 inches longer, three inches wider, and a half-inch taller than the second-generation model, which was introduced in 2001. The first RAV4, introduced for 1997, was even smaller.

Toyota says the redesigned model comes on an all-new chassis, which for now is unique to the RAV4. As before, it’s a crossover SUV, which means it has unibody construction like a car, rather than having a body mounted on a steel frame as with the traditional truck-based models such as the Toyota 4Runner.

The third seat is a first for the compact crossover segment, and the second in the compact SUV class as a whole. Until now, only the Suzuki XL-7 offered a third row of seating in a compact. Later this year Mitsubishi will roll out the redesigned compact Outlander with a third seat.

In the RAV4, the third row seats just two, as it does in the XL-7; the Outlander’s will seat three. And because it’s rather tight back there, the RAV4’s third seat is intended for occasional use only. Toyota says it’s not meant for everyday use or for long trips. The automaker expects only about 15 percent of RAV buyers to choose the third-seat option. The RAV’s base engine continues to be a 2.4-liter inline four-cylinder. For 2006, it’s rated at 166 horsepower and 165 foot-pounds of torque. That’s up from 161 horsepower in the 2005 model.

Standard with the four-cylinder engine is a four-speed automatic transmission. Last year’s manual gearbox has been discontinued.

The optional engine is a 3.5-liter V-6, a slightly smaller version of the 4.0-liter V-6 used in the Tacoma midsize pickup. In the RAV, it’s rated at 269 horsepower and 246 foot-pounds of torque. The V-6 equipped RAV can accelerate from zero to 60 mpg in less than seven seconds, which might come in handy for freeway merges on an uphill ramp. Along with the V-6 engine comes a five-speed automatic transmission.

And for 2006, all RAV4 models come with electric steering, in which the steering motor gets its power from the car’s electrical system instead of the engine. It’s designed to improve fuel economy.

Other standard features include four-wheel disc brakes with antilock braking system and electronic brake-force distribution. Electronic stability control will be included on all models, and is designed to help prevent rollovers. It is coupled with traction control.

Optional is the automatic, electronic on-demand four-wheel-drive system, which is designed for bad-weather and limited off-road driving. No low-range gearing is offered, so this is not the vehicle for serious trail-driving or hill-climbing. But it does come with hill-assist control for up- and downhill driving. On downward slopes, the system will let the car cruise at a steady four mph with the driver’s foot off the gas pedal and the brake. An optional hill-control feature is standard on all V-6 models, as well as four-cylinder models with the optional third seat.

The new RAV has 25.2 more cubic feet of space than the model it replaced. Without the third seat, or with the third seat folded, that gives the vehicle more cargo space as well as a roomier middle row of seating.

The middle seat has a 60/40 split with a center fold-down armrest that includes two cup holders. The third row is a split-and-stow setup that folds flat into the rear floor either all or by half. With both the middle and third seats set up with split-folding backs, the interior of the vehicle can be configured to carry either people or cargo, or a combination. With the third seat in place, however, cargo space behind that seat is just 12 cubic feet. The newest RAV comes in three trim levels: base, Sport and Limited.

Sport models get 18-inch alloy wheels, over-fenders, privacy glass, roof rack and a unique interior seat fabric.

Limited versions get even more, including dual zone air conditioning, power driver’s seat and an upgraded audio system with a six-disc CD changer. Leather seats are available.

Toyota says about 65 percent of RAV4 buyers are expected to be women ages 25-45. But the vehicle also should appeal to young couples and young professionals, including single men, the company said. The average age of the buyer should be 40, 60 percent will be married, and 60 percent will be college graduates, Toyota said. Average annual household income of buyers is expected to be $65,000.

The higher gasoline prices are expected to help boost RAV4 sales as consumers continue to choose smaller and lighter SUVs. Toyota expects to sell about 135,000 of the RAV4 this year, about double the amount the company sold for model year 2005.

G. Chambers Williams III is staff automotive columnist for the San Antonio Express-News and former transportation writer for the Star-Telegram. His automotive columns have appeared regularly in the Star-Telegram since 1995. Contact him at (210) 250-3236; chambers@star-telegram.com.

2006 Toyota RAV4
The package: Compact, four-door, five- or seven-passenger, front- or all-wheel-drive, four-cylinder or V-6 powered crossover sport-utility.
Highlights: The third generation of Toyota’s RAV4, the original mini-SUV, arrived for 2006, but it’s not so mini anymore. This completely redesigned model is bigger than the previous generation, and now comes with its first third-seat option and available V-6 engine.
Negatives: No low-range gearing for serious off-road use; third seat is cramped for adults.
Engine: 2.4-liter inline 4-cylinder; 3.5-liter V-6.
Transmission: 4-speed automatic (4-cylinder); 5-speed automatic (V-6).
Power/torque: 166 HP/165 foot-pounds (four-cylinder); 269 HP/246 foot-pounds.
Overall length: 181.1 inches.
Curb weight: 3,300-3,677 pounds.
Towing capacity: 1,500 pounds (4-cylinder); 3,500 pounds (V-6 w/tow package)..
Brakes, front/rear: Disc/disc, antilock.
Fuel capacity/type: 15.9 gallons/unleaded regular.
EPA fuel economy: 24 miles per gallon city/30 highway (4-cylinder/2WD); 23/28 (4-cyl./4WD); 22/29 (V-6, 2WD); 21/28 (V-6, 4WD).
Major competitors: Honda CR-V, Ford Escape/Mercury Mariner/Mazda Tribute, Mitsubishi Outlander, Saturn Vue, Subaru Forester, Pontiac Torrent/Chevrolet Equinox; Suzuki Grand Vitara, Suzuki XL-7, Nissan Xterra, Hyundai Tucson, Kia Sportage, Jeep Liberty.
Base price range: $20,300-$25,870, plus $605 freight.
Price as tested: $28,159 (Limited 4WD, including freight and options).
On the Road rating: ***** (five stars out of five).

All prices shown are manufacturer’s suggested retail; actual selling price may vary according to manufacturer and/or dealer rebates, discounts and incentives, if any.