4WD, AWD, SUV: what's the difference?

Should you buy a 4WD, an AWD, or an SUV? Which option is right for your needs – and what’s the difference? Here’s what you need to think about before driving away.

Australian automotive buyers can pick from around 68 brands and about 380 different models. That’s a lot of choice for passenger vehicles, light commercial vehicles, motorcycles and all-terrain vehicles! But when it comes to the type of everyday car we like best, sports utility vehicles – better known as SUVs – top the leaderboard. In 2020, 916,968 new vehicles were sold in Australia, and half of these (454,701) were SUVs, according to the Federal Chamber of Automotive Industries (FCAI).

That said, plenty of top-selling cars are not SUVs. In 2020, four of the most popular cars were utes (which are often available in 4WD) including the Toyota HiLux, Ford Ranger, Isuzu D-MAX, and Mitsubishi Triton. The Toyota Landcruiser is also available as a ute with the LandCruiser 70 model, and is a popular performer as a wagon.

Is an SUV, 4WD or AWD better?

The question is, which is better – a 4WD, AWD or SUV? According to the FCAI, SUVs are typically all-wheel drive (AWD) or four-wheel drive (4WD) though two-wheel drive (2WD) models may be available. The choice of car that’s right for you will depend. It can come down to a variety of issues, such as safety, running costs and off-road capabilities. SUVs are also often promoted based on their aesthetic too. To give you an idea of what’s involved, let’s take a closer look at what differentiates 4WD and AWD.

What is the difference between 4WD and AWD?

Car manufacturer Subaru explains the difference between 4WD and AWD, saying AWD describes a car that drives using all four wheels all of the time. On the other hand, a 4WD car is often a two-wheel drive (2WD) vehicle where the driver selects to go into 4WD mode. This means a 4WD driver has more control over when the power kicks into all four wheels, though in most (but not all) cases, a bit of human intervention is needed to put the car into 4WD mode, often by pressing a button, or pulling a lever, to mechanically engage the drive to all four wheels.

The benefit of AWD is that power is continuously delivered to all four wheels, thereby enhancing the car’s traction. As Subaru describes it, this means your tyres “can stick to the road like freshly chewed gum”. That may be drawing a long bow, but AWD can have a safety advantage as the car always has double the grip of a driver selectable 4WD system. That can make a difference if your car unexpectedly hits slippery conditions as an AWD already has the traction to safely negotiate the situation. By contrast, with a 4WD the driver may need to actively make the switch to 4WD mode.

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Is an SUV, AWD or 4WD safer?

According to Subaru, the best SUV from a safety perspective is an AWD vehicle that doesn’t require driver selection to drive all four wheels. This is because the car always has twice the level of traction to get out of tricky situations where a split second can make or break the safety of the car and its occupants.

Do note though, in 2013 it became mandatory for all new vehicles sold in Australia to have ‘electronic stability control’ (ESC). ESC is a safety system that reduces the risk of a driver losing control of a car when it swerves or skids if road conditions change. A study by Monash University Accident Research Centre found ESC can reduce the risk of single vehicle crashes by 28% across all vehicles – and by 51% for 4WDs equipped with ESC. As  the Royal Automobile Club of Victoria (RACV) points out, this mandatory safety feature makes it difficult to make a firm call on whether an AWD vehicle is safer than a 2WD car.

If you’re interested in the safety features of an SUV, or even a ute with 4WD capabilities, the   2021 models awarded a 5-star ANCAP safety rating are shown below.

5-star ANCAP 2021 SUV and ute models

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Source: ANCAP, 2021. *Launches in 2022 in Australia.

You can search for the safety rating of makes and models more widely, including those not tested in 2021, on the ANCAP website.

Car safety ratings and ANCAP explained

Is an SUV or 4WD better for off-road driving?

As Ford explains, AWD systems continually monitor road conditions, sending power and torque to each wheel for the traction control best suited to the immediate environment. However, it adds that while both AWD and 4WD can go off-road, 4WDs are “made for the extreme”. So, unless you want, say, a ute with 4WD options, a 4WD SUV can be a good choice if you’re exploring particularly rugged or difficult terrain.

Is my car insured for off-road driving?

This is always something to check with your insurance company. AAMI says that its car insurance policies provide cover if you take your car off-road for private and recreational use. But there are limitations. As some examples, you may not be covered if you’re competing in a race or contest, or if you compound any damage by continuing to drive after an incident. If you are considering or comparing insurance, it can be a good idea to read the fine print of documents such as a Product Disclosure Statement (PDS) and Target Market Determination (TMD), to understand the coverage and exclusions offered in a car insurance policy.

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Does an AWD or 4WD cost more to run?

AWD can seem like a brilliant car feature. A downside is that sending power to all four tyres calls for a more complex system, and that can mean increased vehicle weight, and potentially a loss of fuel economy. According to a ute and truck service body manufacturer in Melbourne, Ridgeback Service Bodies, AWD cons can include both a higher cost of insurance premiums, plus a higher initial “sticker price” that’s up to several thousand dollars.

With so many SUVs and 4WD cars to choose from, running costs can vary widely between makes and models. For a general guide, the Royal Automobile Club of Queensland (RACQ) calculates the annual running costs of a wide range of cars, including SUVs and utes (classified as ‘light commercial’). The results take into account depreciation and car loan repayments. RACQ’s estimated running costs for SUVs, all terrain vehicles and utes with 4WD capability for 2021 are shown below.

SUV and light commercial (4WD) private car running costs 2021

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Source: RACQ car running costs. All costs are averages, and are current as at 1 May, 2021 unless shown otherwise.

Which is the right car for you?

A car is a major investment, and the choice of 4WD, AWD or SUV should hinge on your budget and what you plan to use the car for. Safety might be another priority. If you’re looking for a family car, an SUV may be preferable. If you’re a tradie looking for some decent tray space, a 4WD ute may be your ideal vehicle. Or, if you’re after a car to tow a caravan, boat or horse float, your preferred vehicle could be one with the towing capacity – and creature comforts, that tick off your bucket list and your budget.

Don’t forget to think about the tax implications, if they apply, for your potential vehicle of choice too. Most Australian businesses can now immediately deduct the full business-related costs of all purchases of capital items, including utes, delivery vans and most cars, to a capped amount using the instant tax write-off.

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Image source: By Mino Surkala/Shutterstock.com.