The term suggests a vehicle with greater equipment, performance, construction precision, comfort, design ingenuity, technological innovation, or features that convey brand image, cachet, status, or prestige—or any other discretionary feature or combination of features.
In contemporary usage, the term may be applied to any vehicle type— including sedan, coupe, hatchback, station wagon, and convertible body styles, as well as to minivans,[1][2] crossovers, or sport utility vehicles and to any size vehicle, from small to large—in any price range.[3]
A Duesenberg, "one of the greatest luxury cars"[4] with custom body by Willoughby.
Automobile manufacturers market specific makes and models that are targeted at particular socio-economic classes, and thus "social status came to be associated more with a particular vehicle than ownership of a car per se."[5] Therefore, automakers differentiate among their product lines in "collusion" with the car-buying public.[5] While a high price is the most frequent factor, it is "styling, engineering, and even public opinion which cars had the highest and lowest status associated with them."[5]
Every era in automobile history has had "a group of car marques and models that have been expensive to purchase, due to their alleged superiority of their design and engineering".[5] Aimed at wealthy buyers, such automobiles might be generically be termed luxury cars."[5] This term is also used for unique vehicles produced during "an era when luxury was individualistic consideration, and coachwork could be tailored to an owner like a bespoke suit."[6] Although there is considerable literature about specific marques, there is a lack of systematic and scholarly work that "analyzes the luxury car phenomenon itself."[5]
Though widely used, the term luxury is broad and highly variable. It is a perceptual, conditional and subjective attribute and may be understood differently by different people: "What is a luxury car to some... may be 'ordinary' to others."[3]
[edit]Global references
Italian Isotta-Fraschini Tipo 8A S LeBaron Boattail Roadster was a 1930s luxury car.[7]
According to the European Commission, the "luxury vehicle" segment is classified as F-segment. However, the boundaries between the traditional segments are increasingly becoming blurred and diluted as features once exclusive to luxury vehicles become standard equipment on even small cars.[8][9][10]
ACRISS is a code system used by many car rental companies in the US for classifying vehicles (but not brands or marques). The system includes Luxury and Premium categories.
Australia In Australia, for taxation purposes a luxury car is defined as a passenger car whose value exceeds a certain threshold[11] (see: Luxury Car Tax).[12]
Germany: In Germany the term "Upper class" (German: Oberklasse) is used.[citation needed]
Russia: Russian markets use the term "representative class vehicle" (Russian: автомобиль представительского класса, also translated as "luxury vehicle").[13]
United States Consumer Guide's categorization which sorts luxury vehicles by size acknowledges that there can be considerable price variations within a class; for instance the Lincoln Town Car has a relatively low MSRP (Manufacturer's Suggested Retail Price) compared to the Jaguar XJ, BMW 7 Series, Lexus LS, or Mercedes-Benz S-Class.[14]
US Luxury Car Segments, according to MSRP (in US$)
Price $15k — $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
[edit]Luxury market segments
[edit]Premium compact segment
The premium compact segment[clarification needed] is relatively new, having been initiated by several European brands in the mid-2000s, and constitute the least expensive offerings in their lineups. These cars are targeted at a niche market of young customers who have a more refined taste in their automobiles and the means to pay for them.[citation needed] By offering a smaller, lighter, more fuel-efficient, and less expensive vehicle, this serves to introduce a younger customer to the luxury marque, in hopes of retaining the coveted customer loyalty.[citation needed] This includes the Audi A3, BMW 1 Series, and Mercedes-Benz B-Class.[15][16][dead link] [17]
Premium compacts may share components with mass market cars from the marque's parent company (the A3), and/or have less sophisticated platforms compared to upmarket vehicles in the lineup (such as the B-Class). The body style tends to be a hatchback or compact wagon, previously associated with economy cars but regaining popularity in the United States for its afforded utility. The luxury branding and style, high-quality interior materials, wide range of convenience features, and performance powertrains are key to distinguishing them from mass market equivalents (one mistake made by the Cadillac Cimarron) and making these appeal to consumers.[17] [18][19]
The classification varies, for instance Consumer Guide Automotive in the US considers the Audi A3 and A4 as part of the premium compact segment due to similar size and MSRP, though these are known in Europe as a small family car and a compact executive car, respectively.[20]
[edit]Entry-level luxury/compact executive cars
The entry-level luxury category is also known as the compact executive car in Britain and (Mittelklasse in German). In the US, 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.[20]
Dimensionally, compact executive cars are smaller than mid-size/large family cars, and sometimes even smaller than compact cars. Mass market compact cars typically use the economical front wheel drive transverse engine layout, well suited to the inline-4 engine, which also maximizes interior room.[21] Several compact executive cars are rear-wheel drive with longitudinal engines, for improved stability and handling,[21] and in order to accommodate the larger size of higher-performance engines (straight-6, V6, rarely V8), with four-wheel drive often being available.[14] Compact executive cars also tend have more complicated independent suspensions, sportier transmissions, and high revolution engines that may require premium gasoline. The more complex powertrain and mechanical layouts of compact executive cars comes at increased cost and reduced interior passenger and trunk space.[14]
Compact executive cars include the Volvo S60, Acura TSX, Lexus IS, BMW 3 Series, and Mercedes-Benz C-Class which particularly emphasize sporty handling.[22][23]
Other vehicles such as the Lexus ES, Acura TL, and Buick LaCrosse are also considered entry-level luxury in the United States and Canada, being similar in price to the BMW 3 Series and Mercedes-Benz C-Class.[24] However, the ES, TL, and LaCrosse are not sold in Europe and do not fall under European luxury classifications. The ES and TL actually began as badge engineered versions of the midsize Toyota Camry and Honda Accord, respectively, retaining the front wheel drive transverse engine layout, whereas Toyota's current Lexus IS does not share a platform with mass market Toyota cars. The ES and TL are not considered executive cars either, despite similar dimensions, since executive cars usually emphasize higher performance, often being rear-wheel drive with longitudinal engines.[22][23] the present iterations of the ES and LaCrosse emphasize "comfortable, reasonably priced luxury",[25] while the TL has recently been targeted at the entry-level luxury sport market.[24]
Recently, the entry-level luxury has been very competitive, and there has been price-overlapping with well-equipped non-luxury cars.[26][27] The bestselling vehicles of the marque are frequently compact executive cars, such as the BMW 3 Series that makes up 40% of the vehicles that BMW sells worldwide.[28][29]
[edit]Mid-luxury/executive cars
The mid-luxury segment are commonly referred to as executive cars in Britain, Obere Mittelklasse in German, and Grandes Routières in French. Examples include the Volvo S80, BMW 5 Series, Mercedes-Benz E-Class, and Jaguar XF [30]
Although having similar dimensions to mid-size cars and large family cars, executive cars are engineered and positioned as premium vehicles with better performance and technology amenities. There is also higher development and production costs, as many well-known mid-luxury cars use the longitudinal (usually front engine rear wheel drive layout) engine mounting which affords space for powerful engines such as a V8, instead of the more economical traverse engine layout of mass market cars which are restricted to inline-4 or V6. Executive cars usually have lower sales and production volumes compared to mid-size cars and large family cars, as base trims with less equipment and smaller engines are not sold in U.S. and Canadian markets.[31] Also due to the problem of steep depreciation, especially concerning cars from less prestigious brands, most executive cars are produced by marques that specialize in larger/more expensive vehicles.
Vehicles in this segment include the mid-range models of several luxury car manufacturers.[32] There are also some flagship sedans in this segment, such as the Acura RL and Infiniti M37/56. Executive cars such as the BMW 5 Series are crucial to a luxury automaker's bottom line, and although not the highest-selling model, they generate a significant amount of profits due to the lucrative technology options.[29]
[edit]High-end luxury/full-size luxury cars
Also known as full-size luxury cars, grand saloons, or premium large cars, while "Oberklasse" is used in Germany. Many of these are the marque's showcases for the newest automotive technology.[33] Several nameplates also offer long-wheelbase versions that offer additional rear legroom and anemities.[34] Full-size luxury cars sold in Canada and the U.S. typically have mid-displacement V8 engines, though recently some marques have offered six cylinders but without much success.[35][36]
Vehicles in this category include some of the models from the flagship lines of luxury car brands. Examples include the Audi A8, BMW 7 Series, Jaguar XJ, Lexus LS, Mercedes-Benz S-Class, Volkswagen Phaeton, and in the US, the Lincoln Town Car and Cadillac DTS.[14][30]
[edit]Ultra-luxury cars
Maybach 62, an ultra-luxury Mercedes-Benz automobile.
R.L. Polk and Company, a global automotive information and marketing firm that provides solutions to automotive and related industries, has defined the term "super luxury" segment for luxury cars costing more than US$100,000.
This bracket includes the entire lineup of Rolls Royce, Bentley, Aston Martin, Maybach, and Maserati, as these marques do not offer lower-priced offerings in the entry-level luxury or mid-luxury segments.[37]
The top-performing variants of flagship cars from Audi, BMW, Mercedes-Benz , Lexus, and Jaguar are often included here as well. They often have 12-cylinder (usually V12) engines for great refinement and smoothness, even though contemporary V8 engines can make similar output while being less expensive. These ultra-luxury trims also feature standard luxury and technology features that would be considered optional on their V8 siblings.[36][37][38]
There are ultra-high performance cars from "exotic brands" that also exceed US$100,000, but would not necessarily be categorized as luxury automobiles, such as the sports cars from Ferrari, Lamborghini and Porsche.[37]
[edit]Luxury SUV/Crossover
The popularity of the luxury-type sport utility vehicle (SUV) segment is a recent development.[39][40]
However, this category can be said to have been created with Kaiser Jeep's 1966 Super Wagoneer as the first true luxury four-wheel drive (4x4) vehicle.[41] It was the first SUV to offer a V8 engine, automatic transmission, and luxury car trim and equipment in a serious off-road model.[42] The Super Wagoneer was "a pioneer that blazed a trail for today's luxury SUVs".[43] It came with long list of standard equipment that included bucket seating with center console, air conditioning, seven-position tilt steering wheel, a vinyl roof, as well as "Antique Gold" trim panels on the body sides and tailgate.[43] After American Motors Corporation (AMC) purchased Jeep, the vehicles were upgraded and refined, including features such as an optional electric sliding steel sun roof, "possibly the first offered on an SUV".[44] The late-1970s Jeep Wagoneer Limited "set the sport-utility market on its ear ... was the most luxurious four-wheeler anyone had ever seen."[45]
The SUV models generated higher-profit-margins than ordinary automobiles, and automakers introduced new luxury models during the late 1990s.[40] For some manufacturers such as Porsche and BMW, luxury SUVs were the first SUV models they produced. Luxury SUVs catered particularly to the U.S. and Canadian markets where station wagons were unpopular, often being produced in these markets (such as BMW Spartanburg) instead of the luxury marque's home country. Some of these models were not traditional SUVs based on light trucks, rather they are classified as crossovers using unibody constructions. SUVs from non-luxury brands had experienced a surge in popularity through early 2000s, causing the traditional luxury marques to follow.[46]
SUVs from the luxury marques grew at almost 40 percent to more than 430,000 vehicles, excluding SUV-only brands like Hummer and Land Rover, while luxury car sales in the U.S. during 2003 suffered a 1% decline, and non-luxury SUV sales were flat. By 2004, 30 percent of major luxury brands' U.S. sales are now SUVs. Luxury brands in particular led the development of crossover SUVs (as opposed to body-on-frame SUVs), making it one of the fastest growing segments in the market, as the forecast for 2002 was approximately 240,000 vehicles and that could double by 2006.[47] Research data showed luxury SUV buyers are compared those vehicles to SUVs of mass market brands, and not shopping around luxury cars, thus the SUV is becoming the key to bringing new customers to the luxury dealerships.[48]
Certain luxury SUVs use body-on-frame underpinnings, often being badge-engineered versions of their non-luxury counterparts, and retaining the rugged off-road and towing capabilities. Examples include the Lexus LX and Lincoln Navigator, which are the premium versions of the Toyota Land Cruiser (itself a luxurious SUV in the United States) and Ford Expedition, respectively.[49]
Other luxury SUVs are crossovers using unibody construction, often sharing the platform with compact executive and executive cars. For example, the Infiniti FX is based upon the Nissan FM platform that also underpins other Infiniti cars. Audi and BMW developed crossovers to compete in the SUV segment as they did not have an existing body-on-frame vehicle in their lineup.[47][50] The Lexus RX was the earliest luxury crossover on the market, and it has since been the best-selling luxury vehicle in the US, so it has inspired similar competitors from rival marques.[51] While early luxury crossovers released in the late 1990s have resembled traditional boxy SUVs, recent offerings have prioritized sportiness over utility — such as the Infiniti FX and BMW X6.[52][53][54]
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