2009 Toyota RAV4 Limited (© Toyota Motor Sales, U.S.A.)Click to enlarge picture

The RAV4 was one of the first entries in the highly competitive crossover market, and today's third generation benefits from years of refinement and many first-in-class features.

The great American migration to smaller vehicles is in full swing, rapidly turning big, burly SUVs into white elephants — bagged, tagged and hung up in dealer showrooms. But for some consumers, downsizing is not as simple as trading a Dodge minivan for a MINI Cooper, or a Chevy Tahoe for a Toyota Prius. There are those who still need — or simply want — the versatility of a vehicle with lots of space for passengers and room for all their stuff. For these consumers, the compact crossover eases the transition, trimming the bulk and boosting mileage without sacrificing capability or versatility. For this reason, and this reason alone, the crossover is today's fastest-growing vehicle segment.

Don't take our word for it — the numbers speak for themselves. In 2000 small crossovers had established a foothold with 2.9 percent of the market, according to sales data from J.D. Power and Associates. By last year one of every 10 cars sold in America was a compact crossover. Currently they are outselling subcompact cars by better than three to one. Even as the recession has withered sales in general, these models are expected to rise to 11.6 percent of the market by the end of the year.

Video: Consumer Reports Top Pick: Toyota RAV4

The Rise of the CUV
The increased popularity of these compact machines, experts say, has a lot to do with the way they've adapted to American tastes.

"There are two overlapping consumer trends happening right now, and crossovers capitalize on both," says Jeff Schuster, director of forecasting for J.D. Power. The first is "the push to 'small,'" which is happening across every vehicle segment as buyers are trading in their bulkier gas-guzzlers for more diminutive, efficient machines to help make ends meet during these trying economic times.

The second is the movement from heavier, more capable, truck-based SUVs to lighter, more nimble, car-based utility vehicles. Some consumers take full advantage of the rough and ready nature of their full-size sport utes. Most do not, however — a fact that hasn't gone unnoticed by automakers and the owners themselves, many of whom are left to question why they are paying for capability they never use.

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Crossovers typically aren't what you'd call rough and ready. They are lighter and designed to perform optimally on pavement doing everyday errands. Because they weigh less, they use less fuel (engines don't have to work as hard to get them going), and because they are less substantial in terms of build (that doesn't mean they are less safe), they cost less to make. Consequently, the monthly payment is generally less for a small ute when compared with that of a bigger beast.

Size Still Matters
But even though smaller is increasingly more popular, it's clear that Americans still demand a bit more elbow room and utility from their vehicles. Although most of the consumers who participated in the recent Cash for Clunkers frenzy snapped up subcompact cars, Schuster says, pint-size crossovers found lots of takers as well: The Ford Escape, Honda CR-V and Toyota RAV4 were among the most popular purchases during the government-sponsored incentive free-for-all. In fact, many dealers sold every small utility vehicle they had in stock this summer.

Compare: Ford Escape vs. Honda CR-V vs. Toyota RAV4

Crossovers haven't always offered the room we desire. When the groundbreaking Toyota RAV4 came to America in 1996, it was dubbed a "mini SUV" by some in the press. Only 146 inches long in its 2-door guise — nearly 3 feet shorter than today's Honda Civic compact sedan — the RAV4 was powered by a tepid 4-cylinder 120-horsepower engine.

Today the RAV4 is in its third generation. Over the years it has grown 3 feet longer and 5 inches wider. Its optional engine is a burly V6 that develops 269 horsepower.

Video: 2010 Ford Escape Review

These expanded small crossovers, including the RAV4, Hyundai Santa Fe, Honda CR-V and Chevy Equinox, deliver between 66 and 79 cubic feet of storage space. In comparison, old-school SUVs such as the Ford Explorer and Chevy TrailBlazer — markedly larger on the outside, and several hundred pounds heavier — could swallow up only 80 cubic feet of storage. Not much of a difference, is it?

Discuss:  Are you interested in a new crossover or "small" SUV?

Yet despite big gains in power and in passenger and cargo space, the compacts have maintained or even increased fuel economy over the past 10 years. The RAV4 V6 engine delivers 27 mpg on the highway, a huge gain over the Explorer V8's 19 mpg, yet the Toyota still easily out accelerates the Explorer.