Car Buying

Hatchback vs. SUV: Which Should You Choose?

Identifying a hatchback versus an SUV can be challenging. Learn more about the pros and cons of a hatchback versus an SUV and which you should choose.

Read time

6 minutes

Date

11.30.2023

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Hatchbacks and SUVs currently represent two of the most popular segments in the automotive industry. The large market share of SUVs includes everything from compact to full-size. Hatchbacks straddle the line between sedans and SUVs, their wagon-like design giving consumers extra cargo space to work with when needed. Choosing between these two segments on the dealership lot can be challenging, especially with so many models available in both categories. 


Ready to drive both hatchbacks and SUVs? Check out a FINN car subscription to access a fleet of electric and gas-powered vehicles. With convenient home delivery, flexible terms, and a single inclusive monthly subscription fee, FINN allows you to figure out if a hatchback or SUV fits your lifestyle. 

What is an SUV?

An SUV, or sport utility vehicle, typically sits higher off the ground than a sedan or hatchback to offer a better view of the road. This higher ground clearance and ride height go hand-in-hand with four-wheel or all-wheel drive. SUVs are known for their off-road capabilities, rugged nature, and durable construction. You might also hear an SUV called a crossover


SUVs come in various sizes, from seating only five passengers to up to eight occupants. Two- and three-row variants exist, depending on the make and model you choose. Many SUVs also have a large cargo area accessible from the rear by lifting a (powered) tailgate. 

What is a hatchback?

Built upon a shorter-wheelbase chassis and similar to a sedan, hatchbacks can hold up to five occupants and have two or four doors. Most hatchbacks ride identically in height to a sedan, with sporty or luxurious accommodations depending on the brand and model. With such a small footprint, hatchbacks are often easier to park than their larger SUV counterparts. Similar to a wagon and somewhere between a sedan and a small minivan in driving position, hatchbacks are easily recognizable by their practicality and the rear hatch that takes the place of a trunk on a sedan. 

What is the difference between a hatchback and an SUV?

Hatchbacks and SUVs vary greatly based on design, performance, safety, cost, and many other characteristics. It’s important to note these features before deciding which type of vehicle best suits your lifestyle. 

Design

Hatchback styling works best in sporty applications because most luxury sedans incorporate (more than) enough creature comforts to satisfy most consumers. For example, the Audi A3, S3, and RS3 certainly check enough luxury marks to earn the four-ring badge, but this platform is especially sporty and capable in the S3 and RS3 variants


Compare that to the Cadillac XT5, which balances sumptuous interior appointments with the all-wheel drive capabilities bred into the luxury brand’s larger SUVs. Styling has a larger canvas and higher seating position with the Cadillac than the A3. 

Performance

Though the Audi SQ5 surpasses the Hyundai Veloster N in horsepower (349 versus 276), both represent performance-oriented versions of different categories. The Veloster N incorporates a smaller four-cylinder engine standard on performance hatches. However, the SQ5 carries a powerful three-liter V6 engine, albeit smaller than the V8 engines many larger SUV variants rely on. 

Safety

Hatchbacks and SUVs typically score well in safety but have their own Achilles heels when it comes to testing. For example, many SUVs face a higher probability of rollovers than hatchbacks, which tend to fare worse in frontal crashes. However, the Mazda Mazda3 and Volvo XC60 scored high points with the National Highway Traffic Safety Administration (NHTSA) and won Top Safety Pick for 2023 from the Insurance Institute for Highway Safety. SUVs tend to make better family cars, while hatchback cars cater to singles and couples. 

Cost

Clothes in bigger sizes cost more because they require more material, and the same principle can be applied to the cost of hatchbacks versus SUVs. You’ll typically pay more for an SUV than you would a hatchback. SUVs are larger, have more expensive equipment, and tend to have a higher starting price than most hatches. For example, the Chevrolet Spark (now discontinued) began at $13,600 in 2023, compared to the 2023 Ford Explorer, which starts at just under $37,000. 

Space

It’s evident from their physical presence that SUVs not only take up more space but also offer more interior space and cargo capacity behind the rear seats. Most SUVs seat between five and eight passengers, depending on the configuration. In addition to more headroom and a higher seating capacity, SUVs tend to have a higher cargo capacity. Then again, maneuvering them through the city to park can require some serious mirror work. 


Hatchbacks can’t hold as much cargo as most SUVs, but many hatchback owners rank seating and cargo capacity low on their priority list. A Honda Fit may have less than half the cargo space of a Hyundai Tucson, but it’s also much easier to park downtown. However, if you plan to go to the grocery store, you might consider a Hyundai Santa Fe if you buy in bulk. 

Towing capacity

Even though the Volkswagen Golf GTI is technically rated for towing overseas, it’s hardly the workhorse most car owners rely on. Instead, that honor rests with SUVs of all shapes and sizes, from the Jeep Grand Cherokee, which can tow up to 6,200 pounds, to the capable Chevrolet Suburban. Most SUVs come equipped from the factory with the bones of a towing rig, including the power necessary to haul a heavy load. 

Fuel economy 

In a contest of fuel efficiency, hatchbacks win hands-down. Their smaller size and leaner engines sip fuel for hours. However, that’s not to say every SUV guzzles gas down to drain your wallet. Instead, many auto manufacturers have turned to hybrid or electric powertrains to offset the lower fuel-efficiency ratings of SUVs. 


For instance, the Volkswagen Golf GTI gets a combined 28 miles per gallon (MPG), with 24 MPG in the city and 34 MPG on the highway. Compare that to the Buick Encore, which earns 30 MPG combined, or 29 city and 31 highway. Switch to the all-electric VW ID.4, and you’ll pass by gas stations without a care. 

Resale value

Although fickle, resale values tend to favor SUVs over hatchbacks. SUVs continue to be a high-demand segment in the automotive industry, while hatchbacks face the axe like sedans did a few years ago. However, that’s not to say you couldn’t retain value in your Ford Focus RS, similar to how a Tesla Model X holds its resale value. 

Hatchback vs. SUV pros and cons

SUVs and hatchbacks represent two distinct segments within the automotive industry. Each has its pros and cons to cater to various buyers. 


Below are the advantages and disadvantages of hatchbacks: 


Pros

Cons

  • Balance of passenger and cargo capacity 

  • Easy to park and navigate around busy city streets 

  • Can be powerful yet fuel-efficient 

  • More affordably priced 

  • Low, if any, towing capacity

  • Resale value not as robust

  • Not ideal for growing families 

  • Lack more advanced safety features 


Compare those to the following pros and cons of SUVs: 


Pros

Cons

  • Various makes, models, and sizes to choose from

  • High passenger and cargo capacity

  • Tend to hold value longer

  • Higher towing capacity

  • Well-rounded safety features list 

  • All-wheel or four-wheel drive capable 

  • Parking can be challenging due to size

  • Higher maintenance costs 

  • Not as easy to maneuver around tight city streets or park in a garage 

 

Which is safer: SUV or hatchback?

Given the average size of vehicles on the road, SUVs (even compact SUVs) stand a higher chance of absorbing the brunt of an impact in a car crash should one occur. Hatchbacks, due simply to their smaller size, typically don’t fare as well. SUVs are often among the best first cars for young drivers because they account for the impressively devastating forces present in most car accidents, especially those at high speed. 

Should you buy a hatchback or SUV?

Purchasing a hatchback versus an SUV requires careful thought, but the ultimate decision should rest on what you’re looking for in a vehicle, whether it’s brand-new or new to you. If you live in a busy city, don’t need much passenger or cargo space, and stick to paved streets, a hatchback might be more your speed. If you live in a snowy climate, want more purchase options, and value safety over fuel efficiency, limit your search to SUVs. 


If you’re not ready to sift through SUV lease deals or pick apart Black Friday car deals for your new car, subscribe to FINN instead. FINN offers a wide selection of vehicles in popular makes and models. You don’t have to make a down payment, and if you like the process, you can subscribe to another car once your current terms expire. 

Final thoughts

Choosing between hatchbacks and SUVs can leave you with a Chevrolet Suburban-sized headache, but the choice doesn’t have to be complicated. Instead, consider what features rank highest and match those to what either segment offers. With such a high demand for hatchbacks and SUVs, you’re bound to find one that suits your lifestyle. 


If you’re still unsure which make and model to purchase, check out a FINN car subscription. When you subscribe to FINN, you pick the exact car you want, down to the specific trim. Select your mileage and terms, and you’re ready to jump in the driver’s seat for an extended test drive as soon as it arrives. Your subscription fee also includes registration, insurance, depreciation, and maintenance, so you can save your hard-earned funds.

Final thoughts
Final thoughts

Final thoughts

Choosing between hatchbacks and SUVs can leave you with a Chevrolet Suburban-sized headache, but the choice doesn’t have to be complicated. Instead, consider what features rank highest and match those to what either segment offers. With such a high demand for hatchbacks and SUVs, you’re bound to find one that suits your lifestyle. 


If you’re still unsure which make and model to purchase, check out a FINN car subscription. When you subscribe to FINN, you pick the exact car you want, down to the specific trim. Select your mileage and terms, and you’re ready to jump in the driver’s seat for an extended test drive as soon as it arrives. Your subscription fee also includes registration, insurance, depreciation, and maintenance, so you can save your hard-earned funds.

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