A wagon starts as a sedan, then carries the roof straight back to a rear hatch instead of ending at a trunk lid. You keep the sedan's low, planted driving feel and gain cargo room that rivals a small SUV.
A midsize sedan's trunk typically holds about 13 to 19 cubic feet. A midsize wagon holds about as much behind its rear seats, and with them folded it opens to 60 cubic feet or more. The Mercedes-Benz E-Class All-Terrain wagon, for example, offers about 63 cubic feet with the rear seats down. The opening matters too: a tailgate swallows a dog crate, a bike, or a flat-pack box that no trunk lid will.
A wagon drives almost exactly like the sedan it is built from: the same low seating, the same low center of gravity, and much of the same handling. That is the wagon's case against an SUV, which sits higher and leans more in corners. The wagon adds a little weight at the rear and can let in slightly more road noise, because the cargo area is open to the cabin.
Some wagons ride higher, with extra ground clearance, standard all-wheel drive, and protective body cladding: the Audi A6 allroad, the Volvo V60 Cross Country, and the Mercedes-Benz E-Class All-Terrain. They handle gravel roads and snow better than a standard wagon while still driving like a car.
Close relatives. Both have a rear hatch; a wagon is longer, with its roof carried further back over a bigger cargo area. Brands call their wagons Avant (Audi), Touring (BMW), Estate or Wagon (Mercedes-Benz), and Cross Country (Volvo).
American buyers moved to SUVs, so most brands stopped importing wagons. The ones that remain are mostly luxury and performance models.
For many drivers, yes: similar cargo room, better handling, and usually better fuel economy. An SUV wins on ground clearance, seating height, and third-row options.