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Can anyone explain to me why we need 4 wheel drive passenger vehicles?
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Most truly don't. That said, AWD handles better than FWD or RWD, even on perfectly dry roads. With some vehicles there is none or little rated difference in mileage although it's obvious there has to be some type of penalty given that you're tacking on several hundred pounds of additional metal and fluids.
Just having a 4th tire on a vehicle is wasteful. With a single rear wheel and drive going to that wheel, a differential isn't needed.