4WD, AWD, SUV - What’s the difference?

By: Byron Mathioudakis

With categories of cars always evolving and often overlapping as brands continue to look for new niches and sub-niches, it can be tricky to understand the differences between an SUV, a four-wheel drive and a regular car, especially as they’re often used for similar purposes.

In 2021, all-wheel drives and SUVs outsold passenger cars (hatchbacks, sedans, wagons, coupes and convertibles) by a factor of 2.5, and now account for one in two new vehicles sold nationally. The positions are swapped from a decade ago.

Here are some of the pros and cons, plus the differences between each

RELATED: Four-wheel drive buyers' guide »
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So, which one do you need?

Nowadays, many SUVs are offered in two-wheel drive (which usually means front-wheel drive) as well as all-wheel drive.

If you regularly travel over long, corrugated gravel roads, or encounter sandy or grassy tracks and hills, the extra traction and grip afforded by a four-wheel or all-wheel drive would be useful. Otherwise, a two-wheel drive vehicle will usually be sufficient.

However, you should also consider that there are differences between all-wheel drive and two-wheel drive vehicles in how they handle and drive, even on sealed roads. For example, you may feel a slight loss of traction when accelerating out of corners in a front-wheel drive vehicle, especially on wet roads, whereas an all-wheel drive will feel more sure-footed.

Then there is also the question of price, and whether it’s worthwhile paying more for the benefits afforded by an all-wheel drive vehicle.

For example, the Toyota RAV4 GX Hybrid two-wheel drive is more than $3,300 cheaper than its all-wheel drive equivalent. For a Mazda CX-5 Maxx, the difference is almost $5,500, though the all-wheel drive gains a bigger engine in the bargain.

Besides costing less to buy, two-wheel drives typically are more economical. Averaging 7.9L/100km, a Nissan X-Trail two-wheel drive uses 0.4L/100km less petrol than its all-wheel drive equivalent.

Two-wheel drive vehicles are cheaper to maintain mechanically, however they might wear front tyres more quickly. They’re also lighter, by at least 80kg. That’s the mass of one extra person.

On the flipside, all-wheel and four-wheel drives are worth more on the used market come resale time, with the gap often being larger than the difference when new. They also both offer a degree of added security and capability when unexpected weather or terrain confronts you.

All-wheel drives and four-wheel drives in particular are better for towing caravans, boats and trailers, as the extra traction can overcome slippery roads or conditions, especially when on steep hills, including boat ramps.

RELATED: Calculating vehicle towing limits »

In vehicles with a separate transfer case and dedicated four-wheel drive modes, engaging four-wheel drive is usually a manual process, requiring the driver to slow down or even stop the vehicle before selecting four-wheel drive. This is usually via turning a dial or by using a lever near the gear stick.

Most offer ‘Low Range 4x4’ for negotiating steep or challenging terrain, or ‘High Range 4x4’ for optimum traction at faster speeds. Note that some four-wheel drives won’t allow either 4x4 mode to be chosen beyond certain speeds, so as not to damage related internal mechanisms.

Popular four-wheel drive examples include the Toyota LandCruiser, Nissan Patrol and the original Land Rover – three tall, tough vehicles with a strong chassis and a robust body bolted on top.

SUVs versus four-wheel drives

SUVs are cheaper to produce and buy than four-wheel drives. A Toyota Kluger GX V6 7-seater starts at $47,650 while the equivalent Toyota Prado kicks off from $59,840.

Being hundreds of kilograms lighter they’re more economical on fuel than four-wheel drives and easier to drive in built-up areas because their suspensions and steering systems are built more for sealed roads than serious off-road driving.

SUVs are also generally nimbler at low speeds and more stable and easier to control at higher speeds because of their lower centre of gravity compared to top-heavy four-wheel drives.

When it comes to safety, many SUVs do perform well in ANCAP vehicle safety ratings, however, as with any vehicle, we’d recommend you check the safety rating of an SUV you may be considering buying.

Given SUVs are typically built with more compact suspension systems than those of dedicated four-wheel drives, an SUV will have more interior space and greater practicality, where vehicles of a similar size are compared.

The loftier height of the seats in SUVs makes them easier to get in and out of for some folk, especially as they don’t have to bend down or haul themselves up, and instead just slide themselves onto a higher seat base.

A higher boot floor makes it easier to load in some circumstances, though this also means that some objects must be lifted higher to clear the bumper in the first place.

But four-wheel drives can reach off-road places that SUVs can’t, mainly due to their high/low range 4x4, higher ground clearances, off-road tyres and specialised suspension and axle designs created for traversing such environments.

Wagons versus SUVs

Wagons have suffered most at the hands of SUVs. There are few left compared to even five years ago. However, wagons do offer some definite advantages, including more useable space.

As many SUVs need to allow for the all-wheel drive versions of the same vehicle in their design, they generally have higher floors and added structural bracing that makes them less space efficient than, say, a wagon equivalent - even two-wheel drive versions.

Wagons have a lower centre of gravity, which means they are more stable at speed and less likely to lose control or tip over (as many early four-wheel drives and SUVs did before electronic stability control was made mandatory more than a decade ago).

They also weigh less than SUVs, which means better fuel economy and lower running costs because lighter cars are easier on brakes and tyres.

Being lighter and with a lower centre of gravity also means that wagons can handle corners and tight turns at speed with more poise and control.

Wagons often offer more cargo/luggage space than an equivalently priced and sized SUV, even taking in the extra roof height, because the boot floor is lower in many cases.

However, SUVs generally are worth more on the second-hand market because consumers now prefer them.

How SUVs developed

SUV is a relatively recent American term, popularised in the 1990s to refer to any high-riding four-wheel drive with greater ground clearance than a regular passenger car. Australia only followed suit using the term from about the mid-2000s.

Before then, most people (including Americans) referred to such vehicles as four-wheel drives or 4x4s, because most had the ability for all four wheels to be powered at the same time by the engine.

So, SUVs and four-wheel drives started off meaning the same thing.

By the late ‘80s, cars were two-wheel or all-wheel drive for on-road performance, handling and safety, while four-wheel drives were for going off the beaten track.

Then Suzuki launched the Vitara in 1988. Still a four-wheel drive with a body-on-frame chassis and dual-range gearbox for some off-road fun, but in a friendly and funky city-sized package, it was a global smash hit, especially with urban buyers.

The Vitara’s success prompted Toyota to produce the original RAV4 of 1994, laying down the template for the SUVs we know today. Within a few years the RAV4 obliterated the medium sedan’s stronghold and sparked endless rivals with names like Honda CR-V, Subaru Forester, Ford Escape and Nissan X-Trail.

It’s worth noting that most carmakers, with the exception of Subaru, have moved away from permanent or always-on all-wheel drive, to on-demand all-wheel drive systems, with sensors to engage the rear wheels in varying amounts as needed.

In the late 2000s, two-wheel drive SUV options arrived, lowering their prices (and weight) and boosting their popularity, as buyers discovered their high-riding benefits, improved vision and feeling of safety.

Being car-based, eventually there were SUV versions of smaller and larger cars alike, with most outselling the original hatch or sedans they were based on.

Sadly, for Australia, our local vehicle manufacturing refused to embrace SUVs, with the sole exception of the terrific Falcon-based Territory (2004) – a fatal error in judgement that led to the local industry’s demise by 2017.

How four-wheel drives developed

In 2021, we marked the 80th anniversary of the four-wheel drive as we know it.

In 1941, the US military put tenders out for a ‘General Purpose’ vehicle during World War Two. General Purpose was abbreviated to GP, which quickly became ‘Jeep’.

Back then, as now, the fundamentals of a four-wheel drive remain the same, namely getting you there and back again off the beaten track. Most still adhere to body-on-frame construction with a separate chassis. And most are two-wheel drive and almost always rear-wheel drive, until four-wheel drive is required.

The four-wheel drive eventually evolved into more luxurious models, as defined by the Range Rover in 1970. What were once basic workhorses, quickly became luxury, status symbols.

Most four-wheel drives still adhere to truck-like body-on-frame construction, as in the old days. Even the latest Suzuki Jimny and 2022 LandCruiser 300 Series retain this.

However, there are exceptions, like the new Land Rover Defender, controversially joining the current Range Rover and Land Rover Discovery in having a special monocoque body construction, as well as most modern Jeeps.

The take away from this four-wheel drive history lesson? By construction and definition, SUVs are more like cars than four-wheel drives.

Four-wheel drive leads to all-wheel drive

Four-wheel drives have their obvious place off-road, but it took decades after World War Two for carmakers to successfully market passenger cars with all four wheels receiving power – or traction – for purposes other than going bush.

This is what we now call all-wheel drive.

The key change here is the absence of typical four-wheel drive truck-like construction, namely a chassis with a body perched on top. Also gone is the extra weight and cabin-space robbing bulk from the low-range gearing, solid axles, transfer cases and other heavy off-road systems.

Stripping excess mass from an existing four-wheel drive and sticking the driveshaft to the rear wheels of a front-wheel drive car is exactly how Audi changed the automotive world forever in 1980.

All-wheel drives and crossovers

The Audi Quattro of 1980 pioneered high volume all-wheel drive vehicle production.

Combined with a turbocharger for increased power, it created a new class of performance car that proved incredibly secure at speed, even when raced through rain, snow or gravel. In turn, this helped the Quattro become a rallying sensation overnight and an icon to this day.

By the mid-‘80s many rivals developed similar all-wheel drive systems. In Europe, America and Japan especially, buyers demanded it to help get them through fierce winters.

Canny Subaru, meanwhile, launched a raised Liberty all-wheel drive wagon in 1996, glued some cladding on the side, and called it the Outback – thus giving birth to the crossover. Others soon released similar models and another niche was born.

Last updated: October 2021