SUV can be as cheap as car

In its report into running costs of cars in 2011, the combined automobile clubs - including the NRMA, RACQ and RACV - says the new Ford Territory seven-seat diesel 4WD costs $265.83 a week to own and run - only $16.79 a week more than a Holden Commodore Omega.

The report refutes much of the myths about 4WDs in city conditions, including being "gas guzzlers" when it comes to fuel economy. The Territory gets a more frugal 8.8 litres/100km compared with the Commodore's 9.1 L/100km.

People who complain about the size of an SUV may not be aware that the Territory is 20mm shorter than the Commodore. It's one of the reasons why 4WD sales are still bucking the 2.8 per cent slide in the overall vehicle market and is the only sector of the industry to post a gain - albeit a small 0.8 per cent - in year-to-date October 2011 data published last week by the Federal Chamber of Automotive Industries.

In the calendar year to October, 22,913 4WDs have been bought by Australians compared with 45,314 passenger cars. The outlook for 4WD - including SUVs - sales remains strong, says accountancy group KPMG in its "Global Automotive Executive Survey" of 2011.

"With rising oil costs and fears over future supplies, it's no real surprise that fuel efficiency is considered to be the single biggest factor for consumers when buying a vehicle, although its importance has declined significantly relative to the 2009 and 2010 surveys," the survey says.

"Interestingly, despite a heightened focus on the `green agenda', less than a third of respondents cited `environmental friendliness' as `extremely important', suggesting that buyers are driven more by their bank balance than their conscience."

To civil engineer and Mercedes-Benz owner Murray Dixon, his new Ford Territory diesel is "the best car I've ever driven". "For driving enjoyment, power, torque, comfort and just the general feel of the car, it's outstanding," he says. 

"It's really my wife's (Valerie) car. We bought it because we have 10 grandchildren and, of course, we don't have them all in the car at the same time but the three rows of seats gives plenty of room and, when they're not being used, we can carry a lot of cargo."

Mr Dixon says he and his wife looked at other SUVs - "My wife was keen on a BMW" - but he says the Ford was the right balance of price and features.