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Many people wonder about the difference between AWD and 4WD. The answer is that there is basically no difference. All Wheel Drive vehicles operate on the same concept as Four Wheel Drive vehicles do; all wheels are driven and distribute torque evenly.
AWD was created as a safety feature for the modern vehicle. It is not specifically designed to handle the off-road terrain. For this a 4WD vehicle is recommended. The focus of AWD is performance and increased on-road safety. There are two types of AWD: full-time and automatic.
Automatic AWD was introduced as a system to increase stability. Automatic AWD vehicles are essentially 2WD cars with 2WD handling and all four wheels will only power when stability is threatened in adverse conditions. This system is often referred to as an "on demand" system. False PR calls the automatic AWD "part-time 4WD". This is not the case. Automatic AWD should not be used in an off-road situation; it will not offer the handling of the full-time AWD or the full-time 4WD.
The main difference between full-time AWD and full-time 4WD is that the system cannot be augmented. Full-time 4WD has the ability to switch to 4-low and as previously discussed, 4-low increases the torque of the wheels. For this reason, the AWD vehicle is not as capable of handling off-road situations, but does perform safely and capably on-road.