I've driven over 1,000 miles in a 2008 non-hybrid Highlander as a rental car, and we own an MMH. This will end up being a big post...

The Highlander first:
The rental car company didn't have the compact car we ordered, so I jumped at the chance to get the Hi since the '08s brand new at the time (in fact, this one had 20 miles on the odometer when I drove off the lot), and we were thinking about buying a hybrid SUV.

Since it was obviously not a hybrid, I focused on things like ride and interior space on my "extended test drive". I was really impressed with the ride--it was very smooth on some of the bumpy back roads of New England. It felt very big in parking lots, but I don't have much experience driving SUVs. It didn't feel so large that I would have ruled out buying one.

It was huge inside, but the second row seats had an opening between them when folded which I thought would probably collect loose stuff when loaded with camping gear. The third row seat was a joke unless you have kids, in which case it would definitely come in handy. The seats were comfortable, even after sitting in them all day.

Over the trip, I calculated mileage for the second two (of 3) tanks. The first tank was 25.5mpg averaging 50mph on back roads and the second was 23.5mpg with more interstate driving (65mph) so an overall average of 24.5mpg. I thought this was really good for a brand new, non-hybrid SUV. I used mild hypermile techniques but no FAS or drafting.

We bought a Mariner about a month after the New England trip. The big reasons were: cost, mileage and smaller size. It was not possible to find a HiHy that wasn't fully loaded and over $40k, and there was no federal tax credit. We got the Mariner on X-plan pricing loaded for ~$31k (look into this if you work for a large company) and we got the full federal tax credit. The other clincher was that we don't need a V6 and a large car so the Mariner was a better fit for our kidless lifestyle, and I would rather have a car I can get 35mpg vs. 30mpg over the long haul.

Now thoughts on the Mariner:
I wasn't very interested in the FEH/MMH at first, but my wife wanted us to test drive it (among other non-hybrid mini SUVs). The test drive warmed me up to the car, but after 5 months I really like it. There were a few annoyances at first like the windshield wiper controls and the key fob, but I've gotten used to them by now and don't care.

The ride is smooth, (although not quite as smooth as the Hi) and it is a very comfortable highway cruiser. The only caveat is the ride is sometimes choppy on concrete highways with expansion cracks. There is plenty of room for my wife and I plus two passengers which was what we were looking for. Folding down the seats is a three step process, but there is lots of room and I like the flat fold seats. The front seats are very comfortable, although I would again give a slight nod to the Hi for all day drives.

Mileage-wise, our average number isn't quite as high as I would like, but it's had a "hard" life so far. The first 3,000 miles were all highway in 0 degree temps and I had to drive a lot faster than I would like. It is also my wife's car, and because she works from home, it sees lots of short trips to and from the store without ever warming up. On my commutes, I've managed 38mpg (per computer) and I can get to the mountians and back at 35mpg (per tank calculation) so the potential is there for sure. I expect the mileage to rise quite a bit over the summer.

Bottom line: they are both great cars. If you have the need for a larger car, and don't mind the $40k+ price, get the Highlander. If you don't NEED a larger car, I would get the FEH/MMH--you won't be sorry. BTW, the 2009 versions will have a slightly larger engine with variable valve timing which should boost power and mileage. If you don't need a car right away, that might be worth the wait.

Edit: Regarding the AWD since I didn't mention it and you asked about it. I've done lots of snow driving and between the winter road trip and my ski trips and the Mariner has done great. One thing that I like (vs my Outback) is the FWD bias. With the Subaru, I had to be cautious at times powering through corners because the back end would snap out (fun in a parking lot, not fun in traffic). The Mariner tracks very well in the corners (when it's probably not using the rear wheels much) but I've never had any slippage issues.

Commuter car, grocery getter, and summer road tripper--average 10k miles per year.


Winter road trips and ski trips, bad weather commuter and my wife's "daily" driver--expected average 4k miles per year.