Understand the car market

It’s easy to feel overwhelmed when you’re trying to find the perfect car. Even after you know what you want, in general terms, you have to find it.

The car industry is full of buzz-words and insider references. Light? Small? Compact? Are these the same, or just similar? Can a sedan be a large car, or are large cars only SUVs? Wait, is an SUV even a ‘car’? Don’t worry. We’ll walk you through. Here’s a break-down of the basics. 

These are the smallest cars on the lot, and they’re a great choice for many reasons. Their compact bodies are ideal for tight city driving. Their smaller engines achieve excellent fuel economy, and produce fewer emissions than beefier alternatives. They also tend to be offered at lower prices.

Some of the most popular babies of the Australian car market are the Hyundai i20, Toyota Yaris, Mazda2, Suzuki Swift and Kia Rio.

SMALL CARS

Australia’s most popular category - small cars live at the intersection of light-car economy and large-car convenience. You can ferry an entire family (of five) around in a small car, but it won’t cost you the Earth in petrol because they’re mostly engineered to remain light on fuel consumption (thanks to usually around a 2-litre engine).

The fact that many small car models offer a diesel option make them attractive to the fuel misers among us, or anyone with environmental concerns high up on their list of needs. Think Holden Cruze, Mazda3, Ford Focus, Hyundai i30 and Toyota Corolla for the ‘small car’ category.

MEDIUM CARS

Mid-sized models used to be the best sellers with families requiring more than a hatch but not wanting to venture into a large car. Usually a 4-door sedan, not too small, and not too big - the advantage of a mid-sized car is that it offers all the benefits of a nice roomy interior without becoming oversized and clunky.

Resale value of medium cars is generally very good. They are seen as a trustworthy family car and have a reputation for being solid and reliable. Think the iconic Toyota Camry, Honda Accord, Hyundai i40, Mazda6 and Volkswagen Jetta.

LARGE CARS

Two of Australia’s most beloved cars – the Ford Falcon and Holden Commodore - qualify as large cars. This category is for powerful sedans and station wagons, typically with V6 engines and rear-wheel drive. They tend to be less economical, but great for carting around a growing family, towing and comfort.

Some of the others in this category include the Toyota Aurion, Nissan Maxima and Volvo S80 – and the even bigger Audi A8, Holden Caprice and Chrysler 300.

SPORTS CARS

Usually the first cars we take notice of as a kid are sports cars. They just look cool. Whether convertible or hard-top, there’s an undeniable pleasure to owning and driving a low-slung, nimble racer.

There are drawbacks, of course - sports cars are expensive to buy, can be pricey to run and service – not to mention insurance can be on the high-side. Most people choosing a sports car care more for the joy of driving than whether you can fit the fortnightly grocery shop and a few kids in the back. If you’re looking for form over function (although most sports cars these days come with plenty of function), go for the sexy sports car.

Aussies seem to like the Mazda MX-5, Mercedes-Benz C-Class, E-Class and SLK, Jaguar XK and the Porsche Boxster and Cayman. 

SPORTS UTILITY VEHICLES (SUVs)

Australia has fallen in love with the SUV. The category has boomed in the past few years with the SUV proving a popular choice across all car-buyer segments. 

SUVs are differentiated by size - compact, mid-sized and large – each with their pros and cons. Compact SUVs are easier to manoeuvre and will get better mileage, but are limited in off-road capabilities. Medium and large SUVs are more rugged and better-suited to full-blown adventures than compact SUVs, but will cost more to buy, service and refuel.

The Nissan Dualis, Subaru XV and Audi Q3 live in the compact (or small) SUV category. Toyota’s popular RAV4, the Ford Kuga and the Mazda CX-5 are considered medium, and think Mitsubishi Pajero, Ford Territory, Jeep Grand Cherokee and Nissan Murano are large.