SUV vs Sedan for First-Time Buyers: What You Need to Know

Buying your first car is an exciting milestone, but it also comes with big decisions. One of the most common dilemmas first-time buyers face is choosing between an SUV and a sedan. Each has its strengths, and the best fit often depends on your lifestyle, budget, and driving habits. In this guide, we break down everything you need to consider to make an informed choice.

Key Takeaways

• SUVs offer more space and a higher driving position.
• Sedans tend to be more fuel-efficient and easier to manoeuvre.
• Insurance and maintenance costs vary between the two.
• Consider lifestyle, budget, and driving environment before choosing.
• Test drives are essential to determine comfort and fit.

Current Market Trends in Australia

Over the past decade, SUVs have steadily grown in popularity across Australia. Today, they represent more than half of all new vehicle sales. Their spacious cabins, road visibility, and versatility appeal to families and road-trippers alike. However, sedans remain a solid choice, especially for city drivers looking for efficiency and affordability. In 2025, the trend continues with compact and mid-size SUVs dominating the urban market while sedans retain favour among solo drivers and budget-conscious buyers.

Additionally, the rise of hybrid and electric options in both vehicle types is changing the game. More Australians are factoring sustainability into their purchasing decisions, which has led to an uptick in demand for fuel-efficient sedans and hybrid SUVs alike. Government incentives for low-emission vehicles also play a role in shaping buyer preferences.

Understanding SUV vs Sedan

Before diving into comparisons, it’s helpful to define what each vehicle type typically offers:

• SUVs (Sport Utility Vehicles): Known for higher ground clearance, larger storage, and the ability to handle mixed terrains. Some come with all-wheel drive.
• Sedans: Sleeker, lower to the ground, with better fuel economy and easier handling. Ideal for urban and suburban travel.

SUVs offer practicality and presence, while sedans focus on comfort and cost-efficiency. For first-time buyers, it’s about finding which attributes match your day-to-day use.

Key Considerations for First‑Time Car Buyers

When stepping into car ownership for the first time, it’s important to weigh more than just the price and appearance of a vehicle. Your decision should account for how the car will perform in real-world use, from daily commutes to long weekend trips. This section covers the most practical aspects new drivers should focus on when comparing SUVs and sedans.

Safety & crash impact

Safety should be a top priority. Generally, larger vehicles like SUVs can offer more protection in multi-vehicle crashes, thanks to their structure and height. However, modern sedans are equipped with top-tier safety technology and have high ANCAP ratings too. Active tech features like lane departure warnings, automatic emergency braking, and blind-spot monitoring are becoming standard in both.

Running costs & fuel efficiency

Sedans typically outperform SUVs in fuel economy due to their lighter weight and smaller engines. If you’re commuting daily or doing city runs, a sedan will likely save you more on fuel. On the other hand, some smaller SUVs and hybrid options are closing that gap and can also be quite economical.

Insurance, maintenance & depreciation

Insurance for SUVs can be slightly higher due to their value and repair costs. Sedans often have lower premiums and may depreciate more slowly depending on the brand. Also, routine maintenance—tyres, brakes, services—tend to be cheaper for sedans. Always compare running costs specific to the model, not just the type.

Driving practicality

SUVs provide better visibility thanks to the elevated seating position. This can be reassuring for new drivers. However, sedans are generally easier to park and navigate in tight city spaces. If your environment involves regular parallel parking or multi-level car parks, a sedan might feel more manageable.

Balance Sheet: Pros & Cons Table

Feature	Sedan	SUV / Crossover
Fuel efficiency	Generally higher	Often lower, though hybrids narrow the gap
Insurance & maintenance	Usually cheaper	May incur higher costs
Safety (occupant)	Good ratings	Higher ride height, but rollover risk
Safety (others)	Less hazard to road users	Greater mass increases collision impact
Practicality	Compact and city‑friendly	Roomier, better for long trips, rough roads
Resale & value	Depreciates moderately	Strong demand might support resale

Checklist for First-Time Buyers

Now that you’ve explored the key differences between SUVs and sedans and considered practical factors like cost and driving needs, it’s time to bring everything together with a simple checklist. This checklist provides actionable steps to help first-time buyers confidently approach the car-buying process.

Assess lifestyle & driving environment

• Do you mostly drive in the city or take regular highway trips?
• Do you need to fit kids, prams, pets, or sports gear?
• Is parking space a challenge where you live or work?

These questions will help narrow your options based on practical needs.

Crunch cost comparisons

• Compare average fuel consumption (L/100km).
• Investigate insurance premiums across vehicle types.
• Include service intervals and part costs.
• Don’t forget registration fees and stamp duty.

Budgeting for ownership is just as important as the purchase price.

Inspect used vs new: warranties & residuals

Buying new means full warranty coverage and the latest tech, but it comes with faster depreciation. Buying a used car offers savings upfront, but it should be inspected for condition and service history. Many dealerships provide certified used cars with warranties, which can offer peace of mind.

Take test drives in both types

• When you test-drive a car, focus on driving comfort, visibility, and noise levels.
• Check control placement and infotainment systems.
• Drive in similar conditions to your usual routes (urban, highway, etc.).

Hands-on experience can instantly confirm or rule out a vehicle.

Don’t Rush Your Decision

Take your time. Read online reviews, compare specs, and ask questions. Talk to people who own the same models you're considering. A little extra research now can save you from future headaches.

Conclusion

Choosing between an SUV and sedan as a first-time buyer is all about balance, between cost, comfort, and practicality. Sedans tend to suit solo or city drivers who prioritise efficiency and lower running costs. SUVs are better for families or drivers wanting more space and a commanding view of the road. Taking time to weigh your lifestyle and test both types will lead to a more confident decision.

Visit Patrick Auto Group for Quality Cars!

At Patrick Auto Group, we help first-time buyers feel informed and supported throughout the process. Whether you're leaning towards an efficient sedan or a spacious SUV, our team in Port Macquarie is here to guide you through every step—from vehicle selection to financing options. Drop by to explore our broad range of inspected vehicles and book your test drive today. With over 25 years of service in the Mid North Coast, our commitment to friendly service, thorough inspections, and diverse inventory ensures you can buy with confidence. Start your journey with us and find a car that truly fits your lifestyle.