Hatchback vs sedan: How to make your decision

What’s the main difference between hatchbacks and sedans?

The main difference between a hatchback and a sedan is the boot space. Generally, hatchbacks have no divide between the rear seats and the boot door, allowing greater storage. In sedans, the boot is separated from the rear passenger compartment. While SUVs currently dominate the passenger vehicle market in Australia, there are still various hatchback and sedan models to choose from, depending on your needs.

What is a hatchback?

A hatchback is a small passenger car with a rear door that opens upward, making it easy to reach the cargo area. The passenger and luggage spaces are combined, and in most models, you can fold down the rear seats to create even more storage space.

Hatchbacks at a glance:

• Relatively large boot with a flat loading area.
• Compact size, which makes it ideal for learner drivers.
• Lighter weight, which can improve fuel efficiency compared to a sedan.

What is a sedan?

A sedan is the traditional shape of passenger cars where the roof slopes down to a separate boot. It gets its name from the sedan chair—a throne that was used to carry royalty and dignitaries.

Sedans at a glance:

• Usually longer than a hatch, which can mean more leg room for those in the back.
• Often quieter in terms of road noise due to more layers of isolation between the rear wheels and the cabin.
• Strong driving power, which can mean a smoother drive for both driver and passengers.

Hatchback vs Sedan: deciding which is right for you

Whether you choose a hatchback or a sedan depends on your preferences and lifestyle. A hatch might make sense if you’ll be zipping around narrow city streets for short trips or carrying things like a bike for weekend rides. A sedan might make for a better family road trip car, given they often have more legroom and engine power.

Here are some important features that can help you make an informed choice.

Cargo space

Part of a sedan’s extra length is a separate boot, which keeps your luggage out of sight and often gives you more cargo space.

On the other hand, a hatchback gives you more vertical space and easy access to your cargo. This makes it easier to load bulky or awkwardly shaped items. Most hatchbacks also have back seats that fold down, so you can fit anything from sporting gear to flatpack furniture or a pram.

Interior space and comfort

A sedan typically offers a roomier cabin, especially for rear seat passengers. As the trunk is separate, the passenger cabin stretches further, resulting in more legroom and comfort on long trips. But the sloping roofline can limit headroom, so taller passengers may find a hatchback more comfortable.

Ease of driving

Rear visibility is generally better in hatchbacks, owing to a larger rear window. This makes them easier to reverse and park, especially for learner drivers. The compact size of a hatch makes it easier to drive through crowded streets and park in tight spaces.

Engine power

Hatchbacks are generally designed as smaller and lighter cars for city driving. The engine is usually smaller, focussed on fuel efficiency. Sedans, on the other hand, are likely to offer higher-powered engines, making them more suitable for highway driving and long distance rides.

If engine power is an important point for you, remember to check your options as many modern hatchbacks, especially performance models, may match the power of a typical sedan.

Safety

When it comes to safety, there’s no clear winner between sedans and hatchbacks. Modern examples of both can be equally safe. Sedans, owing to their longer bodies and separate boot, may offer more safety in a rear-end crash. On the other hand, hatchbacks often have better rear-end visibility. This makes parking and manoeuvring easier, reducing the risk of low-speed collisions.

When comparing cars, the most important indicator of any car’s safety is its ANCAP safety rating. Cars with the latest five-star rating are safer than those with an equivalent but older rating, as ANCAP continually refines its testing criteria.

Will the car I choose affect loan approval or interest rates?

Choosing a hatchback or sedan is unlikely to have a direct impact on your loan approval or interest rate. Lenders focus mainly on your credit score, income, and repayment ability. For the car itself, age, value, and condition matter more than body style.

New cars, whether hatchbacks or sedans, often qualify for lower rates because lenders view them as less risky. Once a vehicle is older than three years, you need to apply for a used car loan, where interest rates may be higher and the maximum loan term shorter. Very old or high-mileage cars might not qualify for standard finance at all, but you may be able to take out a personal loan to finance such a vehicle.

The value of your chosen car also plays a part. Higher-value models may let you access larger loans if you can demonstrate the ability to repay. But higher value models often come with higher insurance premiums. Insurance costs also depend on other factors, such as the level of coverage you choose, the car’s safety rating and repair costs.

Besides comparing car features, consider comparing your financing options and the running costs of the specific models you have in mind to make an informed choice.