Choosing between a hatchback or an SUV for your family

Getting a new car could significantly enhance your lifestyle by offering freedom and convenience. If you’re torn between a sports utility vehicle (SUV) and a hatchback, it’s important to choose a car that will suit your style and needs.

Before you consider financing and dealer options, it’s important to work out the type of car you want to drive. This will affect not only your bottom line, but help speed your search for the perfect car. 

Why an SUV?

• Size: An SUV stands out for its size, characterised by elevation and large wheels. Styled as both sporty and large, an SUV is engineered and designed so that it can be driven on rough terrain while avoiding damage to the underside of the car, thanks to the ground clearance. If you plan to go off-road often, an SUV will likely serve you better than a hatchback.
• Space: As SUVs are larger than other cars, they tend to offer more space inside. Five to seven people can easily be seated, depending on the make and model you’re buying. An SUV also has good boot space to accommodate your luggage if you’re planning long drives. This can be a lifesaver for many families, especially those with small children that need to travel with nappy bags, spare clothes and extra toys to reduce the risk of roadside tantrums.
• Better view: Apart from the size, an SUV can provide a better view of the road because of high ground clearance. Some people prefer an SUV for this reason alone, as it gives them a commanding presence on the roads.
• They’re trendy: According to the Federal Chamber of of Automotive Industries (FCAI), SUVs have been growing in popularity for some time. In October 2022, SUVs and Light Commercial Vehicles made up 80% of Australia’s new vehicles sold. And in January 2023, the CX-3 and CX-5 SUVs from Mazda were two of the month’s top five best-selling vehicles.  

Why a hatchback?

• Compact: A hatchback is a compact vehicle and smaller than an SUV, with a limited space in the boot. Hatchbacks are ideally suited for driving a maximum of five people. If you’re looking at buying a car for just yourself or perhaps you and your partner, a hatchback may be a good choice.
• Economical: Hatchbacks are generally a lot cheaper than SUVs. Apart from the price tag to buy the car, hatchbacks can sometimes offer good fuel efficiency as well. If you plan to drive the car every day to work or uni, a hatchback may just work. Besides that, a hatchback typically costs less to maintain because of lower servicing costs, when compared to an SUV.
• Easier to drive: A hatchback, being smaller, is often easier to drive in cities bustling with traffic. You will find it easier to fit your car into tight parking spots. Many will appreciate these features in a metropolitan area, which is likely to get more and more crowded every year.

Are SUVs or hatchbacks safer?

A longstanding myth is that bigger cars are safer than smaller cars, as the extra weight could help to insulate you from the impact of a crash. Additionally, the extra height could help improve your awareness of your surroundings. By this logic, you may assume that a larger SUV may be a safer choice than a smaller hatchback.

However, the statistics don’t always match the myths. According to car safety organisations, such as ANCAP and UCSR, you’re generally safer in newer cars than in older cars, due in part to the extra safety features that are more likely to be included as standard.

You can check the safety ratings of individual vehicles, including SUVs, hatchbacks and more, at car safety sites like How Safe Is Your Car.   

Should you choose a hatchback or an SUV?

The best type of car for you will vary depending on a range of factors, from your household budget to your lifestyle goals.

A smaller hatchback may appeal if you’re looking for an economical vehicle that’s simple to run and maintain. However, if you go on longer drives over rougher terrain, have a bigger family, or require more interior and boot space, an SUV could be worth a look. Once you have a good idea of the type of car you want, it’s time to go shopping.

After comparing offers for new and used vehicles, you can organise finance to make a purchase. While dealer finance remains an option, there are also a range of car loans available to suit Australians in different financial situations. The best car loan for you may depend on whether you’re looking for a new car or a used car, if you have good credit or bad credit, and a range of other factors.

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