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Hatchback vs Sedan: What’s Best For You?

Aug 17, 2017 | Insights

It’s the age old question: Hatchback vs Sedan. Now is the time to weigh up the pros and cons.

It’s the age-old debate when it comes to buying a new car. Hatchback vs Sedan makes for a challenging decision, but ultimately one you must make when the time comes. Contrary to popular belief, the hatchback has grown in popularity in the past decade to become the number one body shape to rule our roads. But sedans still have their pros when it is time to weigh up the options in the car yard


A hatchback is a small passenger car that typically has a large boot accessible from inside the vehicle. The roof does not curve down to meet the boot and rather is accessible by an additional door at the back of the vehicle. As a single cabin, the seats can also be reclined to create more boot space.

Practicality – Hatchbacks traditionally have a larger boot space, but can also be increased by folding down the back seats, something that you can’t do in a sedan.
Better resale value – According to CarsGuide, hatchbacks like Mazda3, Volkswagen Golf, and Mini Cooper hold their resale value (56%) better than larger cars (40%) over 3 years.
Shorter body – Typically, hatchbacks have a shorter body, making it easier to see the end of your bonnet. This will make those pesky, busy car park hunting days a little bit easier compared to a larger and longer vehicle.
Better fuel economy – A hatchback fuel economy is typically far better than that of a sedan, meaning you can drive for longer on one tank of fuel.

Lack of privacy – As a hatchback does not have an enclosed space, you are able to see what is in the boot through the rear window making it easier for thieves to spot something they want. You can, however, invest in a privacy shelf if your car does not already have one installed.
Less engine power – If you’re a revhead, a hatchback probably isn’t the way to go. Although hatches and sedans are relatively similar in power, the strongest hatch still won’t beat the strongest sedan when it comes to engine power.


A sedan is the traditional model of car body. The roof slopes down to a boot that is enclosed at the back of the vehicle, and not easily accessible from the passenger cabin. Recent sedan models now feature fold down middle seat should you need extra room to fit items in the boot.

Longer body – With a longer body usually comes more leg room. Although this may be a pain when it comes to shopping centre carparks, you’ll be grateful when embarking on a long-haul road trip.
Boot items don’t fly – Being in a sedan means that you don’t have to worry about securing your items in the boot. There is no real risk of items flying around and hitting passengers when you hit a speed bump, so cargo nets won’t be on your shopping list.
Sleeker – Some sedans can have a sleeker aesthetic compared to hatchbacks, making them more in demand when it comes to design.
Stronger driving power – Sedans offer a smoother drive due to its stronger driving power on the road.

Lower seating – Although hatchbacks have a similar seating build, the front of the car is longer, making it difficult to see what is in front/below you when going to park or stop in traffic.
Less fuel economy – Compared to hatchbacks, sedans have less fuel economy, meaning you will be fuelling up more often and spending more money over time.
More expensive – Sedans often come with a higher price tag than hatchbacks as they are considered the grade higher in body shape.
Now you’ve got our low-down, it’s time to look into vehicle finance and get deciding on what suits your needs best. If you are still completely stuck on what to choose, a station wagon or SUV can give a driver the best of both worlds. Happy shopping!

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Makala Elliott

Makala is the Marketing Manager at Finance One. She has worked in the Finance and Lending industry for over 10 years, gathering a wealth of experience. She is passionate about helping Australians get back on track with their finances by passing on her knowledge.

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