Why Are Same Model Hatchbacks Pricier than Sedans?

Cars come in different sizes and forms while offering a wide variety of features. The difference is not only limited to these factors as product price is another discerning parameter. Take the example of sedans and hatchbacks. Hatchbacks are more expensive than sedans, even in the case of the same models. Many of you may wonder about the reasons behind it. Is there anything special about hatchbacks? Let’s find out.

What Is a Hatchback Car?

In the early days, hatchbacks referred to small, boxy, and economy cars. There was even another name for this vehicle — two-box cars. The engine used to be inside the first box and the second box was for accommodating passengers and cargo. Some popular hatchback models were Dodge Omnis, Renault Le Cars, VW Golfs, and Ford Escorts.

In the present time, hatchbacks have transformed into sleeker car models. It comes with elegant rooflines sliding down to the backside bumpers. Apart from being well-built and stylish, these cars have exorbitant pricing. Mazda 3, Honda Civic Sport, Hyundai Elantra GT, and Toyota Corolla are some latest hatchback models.

What Is a Sedan Car?

The basic design of sedan cars has always been the same, unlike the hatchbacks. Sedan denotes the passenger car that comes with four doors and a distinct trunk. This trunk holds the cargo in its immovable package tray under the rear window. The seatback separates the trunk part from the sitting area.

Toyota Camry Sedan
Toyota Camry Sedan. (Source: EurovisionNim / Wikimedia Commons)

For more than the last 70 years, people have known sedans by the traditional classic proportion of the three-box body.

Reasons for Hatchbacks Being Expensive

Being a car enthusiast, you may have wondered about the pricier tag on hatchbacks. After all, they are not drastically different from sedans, especially when both belong to the same model.

To understand the price difference, you must know that the pricing of a product depends on several factors. Three crucial factors that decide the market price are value, competition, and customer preference. Sales volume of the product also gets priority, while manufacturers do not consider vehicle length and manufacturing cost as deciding factors.

If you take a new vehicle market in the USA into consideration, it is more price competitive and has a higher volume of cars. In the case of sedan models, there is a high volume of sales. Since the sedan market is highly competitive, the manufacturers need to set up competitive pricing for their sedans. As a result, what the buyers get is a value-priced sedan car.


What happens in the case of hatchback models is, this type has a smaller customer base, at least in the USA market. For the hatchbacks buyer community, factors like increased utility bear more value.

Due to the lower sales counts, manufacturers offer different equipment and configurations to attract potential purchasers. Since the price is not a determiner of hatchbacks sales volume but public demand and perception are, these cars have higher prices.


Now you know the reasons behind hatchbacks being more expensive than the Sedan cars. If you don’t have a preference for any particular type, going for a sedan would be a budget-friendly choice.