Hatchback vs. sedan – which one should you buy?

Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
Our authors
, updated on November 25th, 2021       

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According to official statistics, throughout the 2010s, Australians bought and sold about 1.15 million motor vehicles. Also, data shows us that the hatchback holds the reign on the Australian road, being among the most popular vehicle choices. It would appear that Australians enjoy driving small cars. Industry experts indicate that the Mazda3 was a favourite for two consecutive years while Ford, Hyundai and Toyota all report that Australians prefer hatchback models over the sedans, which were preferred in the 1990s and 2000s.

What is a hatchback?

A hatchback is described as a rather small passenger car, equipped with a large boot. The roof of a hatchback doesn’t typically drop to reach the boot. However, it comes with a rear door that can be opened upwards. This way, you can reach the cargo area. The greater majority of hatchbacks allow you to fold down the rear seats when you don’t need them so that you can enjoy more space.

What is a sedan?

Typically, a sedan is a passenger car, having a roof that slopes down to the boot that is distinct from the passenger cabin. Sedans received this name due to the sedan chair, which is a throne equipped with a roof and four different carrying points attached.

The hatchback – pros and cons


  • The boot is rather spacious, which means you can fit more things inside! Families tend to prefer hatchbacks because they can put even a pram and the groceries together, unlike most sedans. Plus, you can even fold the rear seats down, if you need to transport some new furniture when you’re moving in!
  • According to experts, hatchbacks seem to hold the resale value better in comparison with larger cars.
  • Hatchbacks are normally short, which makes it quite easy for beginner drivers to park, even in small spaces!
  • Hatches come equipped with windscreen wiper on the rear window, which ensures your visibility, even when driving in harsh weather conditions.
  • In comparison with sedans, hatches have better fuel economy.


  • The greater majority of hatches and sedans present equal levels when it comes to grunt power. Nonetheless, the strongest hatch won’t be as reliable as the strongest sedan.

The Sedan – Pros and Cons


  • Sedans come with high driving power – which equals a smooth driving experience for both passengers and driver.
  • Being longer than a hatch, the sedan comes with more leg room for tall guys in the back.
  • Concerning road noise, sedans tend to be overall quiet, as they are equipped with a range of layers of isolation between the cabin and rear wheels.


  • Typically, sedans are much more expensive than hatches.
  • Concerning fuel economy, the hatchback is more economical.

One more word

Hopefully, this article encompasses the main points you should get acquainted with before deciding whether you should buy a hatchback or sedan. Just one more thing, before you go to the dealer, make sure that the car finance you opt for is truly the right one for your financial situation! Good luck!

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