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A luxury vehicle is a vehicle which provides a great abundance of ease and comfort. Although there can be a great range of "vehicles" that offer luxurious settings, a true luxury car will be a car (sedan, coupé, hatchback, station wagon, roadster, etc.), a light truck (light pickup trucks), or a sport utility vehicle. Luxury vehicles place more emphasis on comfort, appearance, and amenities than on performance, economy, or utility. Furthermore, they usually offer more modern technology, higher quality materials, and are often built in smaller numbers than more affordable mass-market vehicles.

General definition (American market)

While a luxury car is difficult to define as it is somewhat subjective, there are certain guidelines by which the luxury cars are defined. Currently, that means its Mean Selling Price (MSP) is in excess of roughly US$36,000 or higher. In addition to being relatively expensive, luxury cars also offer a higher degree of comfort than their mainstream counterparts as well as a highly sumptuous interior with a strong emphasis on design and beauty.

A vehicle may still be considered an entry-level luxury vehicle if its base MSP is in the general range of $29,000 and $36,000, it features a strong emphasis on comfort, and it is manufactured by a luxury car maker. Luxury car makers are companies which produce cars at approximate retail price of $36,000. In order for a vehicle made by a non-luxury marque to be considered a luxury car, it should have a base MSP of roughly $36k.

In addition to featuring a high base price and high levels of comfort luxury, cars typically carry prestige. Although this cannot be measured in finite quantities, "prestige" usually refers to the allure which the car carries. From prestige, people get the idea of "paying for the emblem". For example, because of its prestige, the BMW 3 Series might cost more than the same car if it was sold under a non-luxury marque. Also, it is important to note, that in no way are all prestige cars actually luxury cars (e.g. the Dodge Viper is certainly not a luxury car).

Non-luxury prestige vehicles

In the car market of the new millennium, it has become rather difficult to determine whether a vehicle is indeed a luxury car or not. Many vehicles such as the GMC Yukon or the Chevrolet Suburban fit the price criteria to be considered luxury vehicles, yet they do not have many of the amenities of other luxury vehicles.

There are quite a few vehicles who have luxury car-like prestige and/or pricing but do not offer the degree of comfort required for them to actually be considered luxury vehicles; these vehicles include the Hummer H1, the Chevrolet Corvette and the Dodge Viper. All three vehicles have base MSPs of above $36,000 and the Hummer H1 is made by a company whose entire lineup, with exception of the Hummer H3, features base MSPs in excess of $50,000. Yet all three lack the comfort needed to make them luxury vehicles. Further, many non-luxury prestige vehicles with über-high prices, such as the Porsche 911 and many Lamborghinis are often mistaken as luxury vehicles, however in comparison to the other luxury cars (even in the mid-luxury segment) they are not luxury vehicles.

Other vehicles, such as the Mercury Grand Marquis, are not considered to be luxury vehicles due to their relatively low MSPs, despite their high degree of comfort.

Luxury market segments (for American cars)

Note that the following classifications of cars does not include certain packages that come with the car that might raise the car into a higher level. For example, the average BMW 3 Series sells in the "entry level" category. But the M3 is certainly part of the mid-level category. Also, vehicles such as the Lincoln Town Car or Cadillac DTS feature interiors as plush and luxurious as those of the Mercedes-Benz S-Class or BMW 7 Series, yet are classified as mid-luxury due to their relatively low MSPs.
Luxury Car Segments, according to MSP
Price $10k — $20k $20k — $30k $30k — $40k $40k — $50k $50k — $60k $60k — $70k $70k — $80k $80k — $90k $90k — $100k $100k or more
$29k$38k $40k $60k
Luxury car manufacturers Entry-level Mid-level High-end Ultra
Non-luxury car manufacturers Entry-level Mid-level High-end Ultra

Entry-level luxury

The entry-level luxury forms the beginning classification of the luxury vehicles; competition in this segment is typically fierce. It features vehicles with an MSP approximately between $29,000 and $36,000, a relatively high degree of comfort and is manufactured by luxury brand. If the vehicle is manufactured by a non-luxury marque its base MSP should exceed approximately $36k and it must place an emphasis on comfort.

This segment mostly includes the bottom vehicles in the line-up of luxury brands as well as the top-of-the-line models of some non-luxury brands. Vehicles in this segment include the Lincoln Zephyr, BMW 3 Series, Lexus IS, Lexus ES, Audi A4, Mercedes C-class, Infiniti G35, Acura TL, and the Jaguar X-Type. It should, however, be considered that some of entry-level luxury vehicles have upgrades which put them into the class above them. For example, while the Lincoln LS V6 is an entry-level luxury vehicle, the LS V8 is due to its pricing a mid-level luxury vehicle.

Mid-luxury segment

In order to be considered part of the middle-luxury segment, a vehicle should feature a base MSP between approximately $36k and $60kHigh-End and Mid-level Luxury Definition, have a very high degree of comfort, and should have the latest or near latest technological and safety innovations. Customers in this segment also yield some priority to performance. Therefore, many car manufacturers produce these cars with V8s and some highly sophisticated 6-cylinder engines.

Vehicles in this segment include the mid-range models of several luxury car manufacturers such as the Mercedes-Benz E-Class, BMW 5 Series, Lexus GS430 or the Jaguar S-Type. There are also some flagship sedans in this segment. The Lincoln Town Car, Cadillac DTS and Acura RL are all considered to be part of the mid-luxury segment due to their relatively low base MSPs despite their rank as a "flagship sedan" and high-end like interiors.

This market is operated under western nameplates with some Japanese representation. It is mainly controlled by Germans (40%), Americans (30%) and Japanese (23%).

High-end luxury segment

This category includes many flagship vehicles of luxury brands such as the Lexus LS 460. Currently, all vehicles priced between the range of $60k and $100k are a part of this exclusive club. The vehicles in this segment offer extremely high levels of quality and latest technological developments, as well as degrees of comfort at least equal to those found in Mid-level luxury vehicles.

Vehicles in this category include some of the models from the flagship lines of luxury car brands. Vehicles in this segment include the Mercedes-Benz S-Class, BMW 7 Series, Audi A8, Jaguar XJ, and Lexus LS. The Volkswagen Phaeton is the only high-end luxury vehicle that is not sold under a luxury nameplate.

This segment is operated under various German, British and Japanese nameplates. It is mainly controlled by Germans (60%), Americans (30%) and Japanese (8%).

Ultra-luxury segment

Currently, all cars in the ultra-luxury segment are priced at approximately $100k or higher.Ultra Luxury Definition They may or may not be better in quality and refinement than some of the more affordable luxury cars, but due to their high MSP, they guarantee exclusivity and help to get their owners noticed. This segment includes the entire lineup of Rolls Royce, Bentley, Maserati, and Maybach. Many "flagship sedans" from car companies whose average car sells in a lower class are actually in this category. For example, anything more upgraded than the Mercedes-Benz S500, BMW 750, the Porsche Cayenne Turbo, or the Audi A8 can be included in this category. The Volkswagen Phaeton W12 (not V8) and the Toyota Century (only in Japan) are the only ultra luxury vehicles not manufactured by a luxury car manufacturer. Most of the vehicles in this category offer 12-cylinder engines, though some such as Maserati offer only V8s.

This category is operated mostly by European nameplates and controlled mainly by Germans (70%), Americans (10%) and Italians (15%). Some critics have speculated that Asian manufacturers do not have any presence because they fear no one will accept their products in this category.

Luxury SUV (United States)

A luxury SUV much like a luxury car is a relatively expensive vehicle that features a higher emphasis on comfort and quality than its mainstream counterparts. Even though luxury SUVs do not necessarily feature more comfort or a higher quality than sedans, they tend to be more expensive than luxury sedans. The top-of-the-line SUVs of American and Japanese luxury car makers out price their flagship sedans. The flagship SUV Cadillac Escalade, for example, has a base MSP of approximately $57,280, versus $41,991 for the flagship DTS. This scenario, however, does not hold true for European automakers, where the flagship sedans are still priced above the top-of-the-line SUV.

Luxury SUV can be classified into similar segment as luxury cars.

Crossover

Crossover luxury vehicles are between 60-70 inches in height and generally more affordable than traditional luxury SUVs (70 inches and over in height) and feature a base MSP from approximately $30k to $42k. Since they are crossover vehicles, they tend to be smaller than SUVs and feature sedan-like design features. Vehicles in this category include the Lexus RX, Audi Q7, Lincoln MKX, and the Infiniti FX45.

Pickup trucks

In the early 2000s, the two main American luxury manufacturers, Lincoln and Cadillac, started the luxury pickup truck segment. The first luxury pickup to enter the scene was the Lincoln Blackwood, first announced in 1999 and put into production in 2002. Less than 4,000 Lincoln Blackwoods were sold, and even those that were sold were sold mainly with the help of heavy incentives. As of 2006, the only two luxury pickup trucks on the market are the Lincoln Mark LT and Cadillac Escalade EXT.

European definition

In Western Europe, different classifications are sometimes used than in the United States. While most luxury cars are considered luxury cars in both Europe and the US, the entry-level segment is not.

Car makers are classified in many groups, but they do not have specific names. Car fans argue on whether a certain brand can be compeared with another one or not, even in the same country, region or city.

Mainstrean Japanese manufacturers (like Honda, Nissan and Toyota) sell slightly more expensive cars than European manufactueres (Opel, Peugeot, Renault) but are considered in the same category as them. Car makers like Alfa Romeo, Chrysler, Lancia, Saab, Subaru and Volvo would fall into the near luxury manufacturer category (or even lower), as these brands build cars with slightly better qualities than usual.

The three German car makers Audi, BMW and Mercedes-Benz are the traditional luxury manufacturers together with Jaguar, although there are some new competitors like Lexus. In the end of the spectrum, Bentley and Rolls Royce are above all the previous brands. Sports car manufacturers are usually considederd apart (and distinguished by their exclusivity, mainly by their production numbers), although some of them produce luxurious sports cars', like Aston Martin and Maserati.

Germany

In Germany, cars with MSPs of approximately over $20k are classified as "Mittelklasse" (Middle-Class), "Obere Mittelklasse" (Upper-Middle-Class), and "Oberklasse" (Upper-class).

Middle-Class vehicles are the equivalent of entry-level luxury cars in the US such as the BMW 3 Series, Mercedes-Benz C-Class or the Audi A4. These vehicles are not considered to be luxury cars.

Upper-Middle-Class vehicles are the equivalent of mid-level luxury cars in the US. They include vehicles such as the BMW 5 Series, Mercedes-Benz E-Class, and the Audi A6. These vehicles are considered to be luxury vehicles.

Upper-Class vehicles are the equivalent of high-end and ultra luxury vehicles in the US. They include vehicles such as the BMW 7 Series, Mercedes-Benz S-Class, and the Audi A8.

Luxury car manufacturers

Car manufacturers of whom the MSP of all vehicles sold is equal to or greater than $36,000. While this definition is based on American market MSPs, it can be used globally to identify luxury marques.

Current luxury car manufacturers

These are luxury car manufacturers whose models are currently on the market.


Past luxury car manufacturers

These are luxury car brands that used to exist but have since been either bought up or disappeared from the market due to bankruptcy.

Near-luxury brands

Semi-luxury, or near-luxury brands are vehicle brands that are not only mistaken for luxury car manufacturers, but also place a relatively high degree of emphasis of comfort in some of the more upscale vehicles in their lineup. Usually the model lineups of these brands include one proper luxury car such as the Chrysler 300 and Volvo S80. But since less than half of the models in their lineup are luxury vehicles, these brands may not be considered to be proper luxury brands.

Ultra-luxury dealership Locations

Ultra-luxury vehicles such as Bentley, Rolls-Royce, Aston Martin, etc., like other sectors of the retail market, luxury brands like to cluster their dealerships closely together in order to create a shopping "destination" or "luxury autopark." The following areas the are the only one's featuring more than three dealerships selling marques whose median MSRP is in excess of $100k.

References

See also

Luxury motor vehicle manufacturers | Luxury vehicles

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This article is licensed under the GNU Free Documentation License. It uses material from the "Luxury vehicles".

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