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Motoring
Hatch vs small SUV: what’s the difference and which is best?
Should you buy a hatchback or a small SUV? This guide will help you decide.
When it comes to choosing a practical, compact car for everyday driving, many Australian motorists find themselves weighing up two popular options: the hatchback and the small SUV.
A traditional small passenger car and small SUV both offer distinct advantages, but depending on your lifestyle, budget and driving habits, one may suit your needs better than the other.
It’s easy to be persuaded by this newer breed of SUV, which is the fastest growing segment in Australia, compared to a traditional hatch that remains a favoured choice for many buyers but today only accounts for less than half the sales of small SUVs.
That doesn’t mean you should follow suit. Here’s a breakdown of the key differences between hatch vs SUV, pros and cons of each, models to consider across different size brackets, petrol power, hybrid, EV and sports/off-road variants and key considerations to help you determine which car is best for you.
RACV guides for buying new and used cars
- Australia’s best family cars
- Australia’s best hybrid and PHEV cars, SUVs and utes
- Australia’s best electric cars and SUVs
- The best affordable SUVs in Australia
- The cheapest hybrid and PHEV cars in Australia
- The cheapest electric cars in Australia
- Best used cars and SUVs under $50,000
- Best used cars, SUVs and utes under $20,000
In this article
Should I buy a hatchback over an SUV?
Small passenger cars still make up about 10 per cent of all new vehicle sales in Australia, with hatchbacks overwhelmingly favoured over sedans for the extra versatility provided by the tailgate, roomier cargo area and fold-down rear seats.
As a new vehicle, hatchbacks are among the cheapest cars available, and as a used car their popularity over a long period means they’re prolific and competitively priced. Small cars were still the number-one best-selling vehicle category in Australia in 2017 but have now slipped to fifth in 2025 behind utes and small, medium and large SUVs.
Small cars are typically fuel efficient, affordable to maintain, comfortable to drive and easy to manoeuvre.
Comparing a similarly specified Toyota Yaris hatch versus a Toyota Yaris Cross small SUV using RACV data highlights many of these benefits. Comparing the Volkswagen Golf with the Volkswagen T-Roc also provides an insight into hatch vs SUV similarities and differences.
Hatchback pros:
- Affordability: New and used hatchbacks generally have a lower purchase price compared to comparable SUVs.
- Fuel efficiency: Hatchbacks are usually smaller, lighter and more aerodynamic than SUVs, which should translate to lower fuel consumption.
- Running costs: As well as typically using less fuel, hatchbacks may also bring lower costs with replacement tyres, scheduled servicing and, in some cases, repairs.
- Easy to park: Smaller dimensions and a tighter turning circle can make hatchbacks perfect for city driving, especially in narrow streets and crowded carparks.
- Driving performance: A lower centre of gravity, lighter weight, improved aerodynamics and other factors can help make a hatchback more stable and enjoyable to drive than a higher-riding SUV.
- Sporty styling: Styling is always a personal choice, but hatchbacks usually have sleek looks compared to taller SUVs that are sometimes an odd mix between passenger car and traditional 4x4 wagon.
Hatchback cons:
- Lower ground clearance: Hatchbacks are less suited to challenging road conditions, such as rough and bumpy dirt roads, where SUVs can benefit from a higher ground clearance.
- Less visibility: The lower seating position in a traditional passenger car can put the driver at a disadvantage compared to a higher-riding SUV, not least because most cars on the road are taller SUVs or utes.
- Reduced cargo space: Hatchbacks are flexible but their overall cargo volume is typically less than a small SUV.
- Tighter rear seat room: Hatchbacks tend to have a more compact cabin, especially in the rear seats. Taller passengers may find rear headroom and legroom more cramped compared to an SUV.
Best hatchbacks to consider:
- Micro/light hatch – Kia Picanto – tiny, fun, super-efficient, affordable.
- Petrol hatch – Volkswagen Golf – all-round driving excellence, quality feel, refined.
- Hybrid hatch – Toyota Yaris – stylish, economical, safety focus with emergency call (eCall).
- EV hatch – BYD Dolphin – high-tech, efficient, comfortable, enjoyable to drive.
- Sports hatch – Hyundai i30 N – brilliant performance, tuned for Australian roads, spacious.
More: Australia’s best, affordable, new first cars for drivers in 2025
Should I buy an SUV over a hatchback?
There are some genuine hardcore 4x4 off-road small SUVs available in Australia – stand up, Suzuki Jimny – but the vast majority are crossover-style vehicles that blend car-like comfort with a higher driving position and, usually, an extra dose of space and practicality.
They are typically built on the same platform as hatchbacks or other passenger cars but often stand apart with styling that reflects a bolder spirit of adventure (or simply an active lifestyle) compared to a hatchback’s metro chic.
As with traditional small cars, the small SUV genre includes highly compact vehicles that are, indeed, best described as high-riding hatchbacks, while at the other end of the scale there are surprisingly roomy and highly versatile models to suit a broad range of buyers, including families.
Carmakers typically have multiple entries in the small SUV segment that you can compare. These include the Hyundai Inster, Venue and Kona, the Kia Stonic, Seltos and EV3, and the Toyota Yaris Cross, Corolla Cross and C-HR.
Model names can sometimes be misleading, too. For example, a Mazda CX-3 might appear to be a taller version of the Mazda3 hatch, but it’s more closely aligned with the smaller Mazda2. The larger Mazda CX-30 is based on the Mazda3.
Small SUV pros:
- Higher driving position: Sitting up higher in an SUV offers better visibility of the road ahead compared to a lower passenger car.
- Easier access: Small SUVs tend to offer easier ingress/egress due to their higher hip point (seat height) compared to hatchbacks. This can also be helpful for parents securing childen in child restraints.
- Extra ground clearance: The higher ground clearance and other aspects such as a typically longer wheelbase in an SUV compared to a hatchback can help improve ride comfort over rough and uneven surfaces.
- Broader skillset: As well as extra clearance, small SUVs are sometimes available with all-wheel drive (AWD) and/or specific off-road driving modes that makes them more suitable for basic recreational touring.
- More versatility: Small SUVs tend to have a taller, deeper cargo area than a traditional hatchback, along with a wider tailgate opening. The extra height can also make loading and unloading easier.
- Perceived safety: Some motorists feel safer driving a slightly bigger vehicle that creates a sense of security with its improved visibility, extra clearance, stronger road presence, etc.
Small SUV cons:
- Higher purchase price: Whether buying new or used, small SUVs are generally more expensive than a hatchback that has a similar equipment level, powertrain, performance, etc. In some cases, they may also depreciate more quickly than a hatch.
- False sense of capability: Despite their rugged looks, many small SUVs are not designed for off-road driving and might not perform any better than a hatch in slippery conditions. They are often only front-wheel drive, might not have much extra ground clearance and typically don’t have underbody protection.
- Extra running costs: SUVs are typically less fuel efficient than hatchbacks due to factors such as size, weight and design. They often have larger tyres that are more expensive to replace and extra components like a 4WD system may bring higher servicing costs. Off-road and/or rough-road driving can also lead to components wearing out more quickly.
- Bulkier to manoeuvre: Small SUVs at the bigger end of the scale can feel much different to drive than a hatch, especially when negotiating laneways, performing U-turns or fitting into tight garages or parking spaces.
Best small SUVs to consider:
- Micro/light SUV – Volkswagen T-Cross – Euro style, quality feel, great all-rounder.
- Petrol small SUV – Hyundai Kona – highly equipped, solid ride/handling, spacious (EV and hybrid options too).
- Hybrid small SUV – Honda HR-V e:HEV – powerful, economical, clever packaging.
- Electric small SUV – Kia EV3 – classy, comfortable, quiet, efficient, tech-laden.
- Off-road small SUV – Suzuki Jimny – proper 4x4, cult status, utilitarian, but limited appeal.
Hatchback vs small SUV – buyer’s checklist
Choosing between a hatchback and a small SUV will come down to buyers’ preferences and their individual needs. Here are four key considerations:
- City vs regional driving: If you mainly commute in the city, a hatchback’s size and efficiency might be more practical. For rural roads or occasional gravel tracks, a small SUV’s extra clearance and other attributes may be preferable.
- Passenger and cargo needs: Consider how often you’ll be carrying passengers, pets, prams or sports gear. Cargo space and versatility can vary between models, so closely check each model’s specifications.
- Running costs: Factor in not just fuel use, but other costs such as servicing, insurance and tyre replacement.
- Safety and comfort: Many new small SUVs are launching in Australia compared to hatchbacks, bringing the latest safety technology and creature comforts. Always look for five-star ANCAP safety ratings based on the latest testing protocols where possible.
More: Search and compare cars with our expert reviews, price guide and data insights.
The information provided is general advice only. Before making any decisions please consider your own circumstances and the Product Disclosure Statement and Target Market Determinations. For copies, visit racv.com.au. As distributor, RACV Insurance Services Pty Ltd AFS Licence No. 230039 receives commission for each policy sold or renewed. Product(s) issued by Insurance Manufacturers of Australia Pty Ltd ABN 93 004 208 084 AFS Licence No. 227678.
