BekZ - It depends also whether you are planning to have more than 3 kids - because if you are, or you think it may be a possibility down the track, you might be better off going for the bigger car now. As far as station wagons go, you will definitely be able to fit the 3 of them in the back and the boot space is a bonus but they aren't really any bigger than sedans seat wise. Maybe a little bit wider but not much...so its not going to be much of a change from the sedan that you already have. Is is really worthwhile spending the money to buy a car that is not much bigger than the one you already have? Just a thought...

As for 7 seaters, when we had baby 3 we traded our station wagon in for a Hyundai Trajet, it was great for a year until it completely died on us. Basically needed a whole new motor, so we decided it wasn't worth fixing it and got rid of it. Now we are back in a sedan (holden statesman) but will soon be getting our Honda Odyssey (when the bank finally gives us the money!) and I can't wait! So from my experience I wouldn't be recommending a Trajet.

Good luck with the car search!