The term luxury vehicle is a marketing term for a vehicle that provides luxury in exchange for increased cost. The term suggests a vehicle with more equipment, performance or prestige — or other discretionary features beyond strict necessity.
Though widely used, the term is broad, highly variable, ambiguous and abstruse. The term can reflect a wide range of a vehicle's design or marketing features, including body type, construction, comfort, size, equipment content, technological innovation or brand image — provided at a higher level and at higher cost.
Luxury vehicles are often built in smaller numbers than more affordable mass-market vehicles. Luxury vehicles are historically 5 or 6-passenger four-door sedans. Recently the term "luxury" has been stapled onto other vehicles, including coupés, hatchbacks, station wagons, roadsters, and even trucks, such as light pickup trucks or sport utility vehicles.
General definition (American market) edit
While defining what constitutes a "luxury car" is somewhat subjective, guidelines such as price, design, comfort, and prestige can be used to help define the term. 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. Features such as interior leather and polished "woodgrain-look" dashboards are common amenities.[2] Luxury cars typically carry prestige, which means the allure that the car carries. Some automakers develop luxury or halo vehicles from their mass production models by product differentiation, effective marketing mix modifications (particularly by charging a higher price for relatively minor changes and use of more up-market advertising), and buyer driven market segmentation through product placement. As a result, "luxury" is sometimes only in the perception of the consumers.[3]
In the 2000s, defining "luxury car" is more difficult, because many vehicles such as the GMC Yukon or the Chevrolet Suburban are moderately expensive, yet they do not have many of the amenities of other luxury vehicles. As well, there are vehicles with luxury car-like prestige and/or pricing that do not offer the degree of comfort required for them to actually be considered luxury vehicles, such as the Hummer H1, the Chevrolet Corvette and the Dodge Viper.[4]
Many high priced prestige vehicles, such as the Porsche 911, Alfa Romeo GTV, most Ferraris and many Lamborghinis are classed as luxury vehicles, when they lack many of the amenities of typical luxury vehicles and are better fitted to be called exotic (with the exception of the Porsche). Other vehicles, such as the Mercury Grand Marquis, are not considered to be luxury vehicles due to their relatively low suggested retail prices (MSRPs), despite their numerous in-cabin comfort features.
European definition edit
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In the European Union, different classifications are sometimes used than in the United States. While most luxury cars are considered luxury cars in both Europe and the U.S., the entry-level segment is not. Classification within "luxury cars" is more precise when considering the vehicle's size.
Manufacturers edit
Manufacturers are classified in many groups, but they do not have specific names. Car fans argue on whether a certain brand can be compared with another one or not, even in the same country or region.
Jaguar, BMW, and Mercedes-Benz are the traditional luxury manufacturers, but manufacturers such as Saab, Audi, and Volvo are now considered by many to fall into this category. Lexus has met with limited but growing success across Europe even though it is a top selling luxury carmaker in the United States.[5] At the top end of the spectrum, Bentley, Maybach, and Rolls Royce are generally considered more prestigious than any other luxury car brands
Sports car manufacturers are usually considered apart (and distinguished by their exclusivity, mainly by their production numbers), although some of them produce luxury sports cars (mainly grand tourers), such as Aston Martin, Porsche, and Maserati). Such sports cars are also known as "performance cars" that are designed to emphasize performance before luxury.
Kaiser Jeep created the luxury four-wheel drive category in 1966 Super Wagoneer (first SUV to offer a V8 engine, automatic transmission, as well as all the luxury features and appointments) continuing through the segment leading Wagoneer Limited models.
Segments edit
Current compact executive cars (Mittelklasse in German) are cars between 4.50 metres (177.2 in) and 4.65 metres (183.1 in) long, and equivalent of entry-level luxury cars in the United States. Generally speaking, the lower price range is approximately € 25,000 up to € 45,000. This includes vehicles such as the Cadillac BLS, Mercedes-Benz C-Class, Alfa Romeo 159, Audi A4, BMW 3 Series, Jaguar X-Type, Lexus IS, Volvo S40 and Saab 9-3, as well as the Acura TL and Infiniti G35 and in the U.S.
Executive cars (German: Obere Mittelklasse; French: Grandes Routières) are usually between 4.75 metres (187.0 in) and 4.90 metres (192.9 in) long, with prices between € 40,000 and € 60,000. They are similar to the mid-level luxury cars in the United States; examples are the Alfa Romeo 166, Audi A6, BMW 5 Series, Cadillac CTS, Citroën C6, Jaguar XF, Lancia Thesis, Lexus GS, Mercedes-Benz E-Class, Saab 9-5, Volvo S60, and Volvo S80. Some 4x4s which would fit this category are the Land Rover Discovery (predecessor to the Land Rover LR3) and the Lexus RX.
Cars above 5.00 metres (196.9 in) are simply called luxury cars in the United Kingdom, or "Oberklasse" in Germany, and have a price above starting in the € 70,000 range as well as a length commonly exceeding five meters. Luxury cars include the Audi A8, Bentley Continental Flying Spur, BMW 7 Series, Cadillac STS, Jaguar XJ, Maserati Quattroporte, Mercedes-Benz S-Class and Lexus LS. Similarly priced 4x4s are the Land Rover Range Rover, Range Rover Sport and Porsche Cayenne. In the U.S. the Lincoln Navigator, Cadillac Escalade, Infiniti QX56 and SUVs such as the Mercedes-Benz GL-Class, Audi Q7, and the Volvo XC90. The BMW X5 is also included in this category.
Luxury market segments (for American cars) edit
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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 Cadillac CTS sells in the "entry level" category, though the high performance CTS-V's price is deep in the mid-level price ranges. 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 compared to the BMW 7 Series, Lexus LS, or Mercedes-Benz S-Class.[5]
| Luxury Car Segments, according to MSRP | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Entry-level luxury edit
The entry-level luxury forms the beginning classification of the luxury vehicles; competition in this segment is typically fierce. It features vehicles with an MSRP approximately between $26,000 and $36,000 (though with options, particularly on the BMW 3 Series and Mercedes-Benz C-Class. These cars can creep well into the $40,000 to $60,000 range). These cars give a relatively high degree of comfort is manufactured by luxury brand. If the vehicle is manufactured by a non-luxury marque its base MSRP should exceed approximately $36k and it must place an emphasis on comfort. The equivalent classification in Britain is compact executive car.
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 Acura TSX, Acura TL, Buick Lucerne, BMW 3 Series, Cadillac CTS, Chrysler 300, Mercury Grand Marquis, Lexus IS, Lexus ES, Audi A4, Mercedes-Benz C-Class, Infiniti G35, Lincoln MKZ, Volvo S40, Volvo S60, Volvo V50, Saab 9-3, and the Jaguar X-Type.[6]
Mid-luxury segment edit
In order to be considered part of the middle-luxury segment, a vehicle should feature a base MSRP between approximately $36k and $60k[2], 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. In Britain, these models are commonly referred to as executive cars.
Vehicles in this segment include the mid-range models of several luxury car manufacturers such as the Mercedes-Benz E-Class, BMW 5 Series, Holden Caprice, Holden Statesman, Audi A6, Saab 9-5, Lexus GS, Infiniti M and Jaguar S-Type/XF.[7]
There are also some flagship sedans in this segment. The Citroën C6, Cadillac DTS, Chrysler 300C, Lincoln Town Car, Peugeot 607, Renault Vel Satis, Volvo S80, and Acura RL are all considered to be part of the mid-luxury segment due to their relatively low base MSRPs despite their rank as a "flagship sedan" and high-end like interiors.
High-end luxury segment edit
This category includes many flagship vehicles of luxury brands such as the BMW 7-Series, Cadillac STS, Mercedes-Benz S-Class, or Lexus LS. Currently, all vehicles priced between the range of $60k and $100k are a part of this exclusive club.[2] 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. There is no precise term in the United Kingdom; such a car would be simply called a luxury car.
Vehicles in this category include some of the models from the flagship lines of luxury car brands. Vehicles in this segment include the Lexus LS, Cadillac STS, Mercedes-Benz S-Class, BMW 7 Series, Audi A8, and the Jaguar XJ.[8] Mercedes' E-Class based Mercedes-Benz CLS-Class is also in this segment. The Volkswagen Phaeton is the only high-end luxury vehicle that is not sold under a luxury nameplate. The Phaeton is no longer sold in the United States due to low consumer demand, as many consumers were unwilling to spend upwards of US70,000 for a non-luxury nameplate; interestingly Volkswagen's subsidiary Audi covers the high-end segment with the Audi A8.
Ultra-luxury segment edit
Currently, all cars in the ultra-luxury segment are priced at approximately $100k or higher, however the category also contains lower-level luxury cars with optional engine choices. [9] They may or may not be better in quality and refinement than some of the more affordable luxury cars, but due to their high MSRP, they guarantee exclusivity and help to get their owners noticed. This segment includes the entire lineup of Rolls Royce, Bentley, Maserati, Aston Martin and Maybach. Many "flagship sedans" from car companies whose average car sells in a lower class are actually in this category. For example, vehicles such as the Mercedes-Benz S600, Cadillac XLR-V, BMW 760, Lexus LS 600h L[10][11], Volkswagen Phaeton W12 or the W12 version of the Audi A8 can be included in this category.
Luxury SUVs edit
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 can out price their flagship sedans. The flagship SUV Lincoln Navigator, for example, has a base suggested retail price (MSRP) of approximately US$46,850, versus $45,915 for the flagship Lincoln Town Car. 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.
- Entry-level luxury SUVs must feature a base MSP of approximately over $38k and offer a high degree of comfort. A vehicle may however still be considered a luxury SUV if its base MSP lies in excess of approximately $29K and it is manufactured by a luxury car manufacturer. Vehicles in this category include the Acura RDX, Lexus RX, Infiniti EX, Audi Q5, Mercedes-Benz GLK-Class, BMW X3, Volvo XC60, Saab 9-7X, Land Rover Freelander, Chrysler Aspen, and the Lincoln MKX.
- Mid-level luxury SUVs feature base MSPs ranging approximately between $40K to $60K. Vehicles in this category include the Acura MDX, BMW X5, Audi Q7, Mercedes-Benz M-Class, Volvo XC90, Saab 9-7X, Land Rover LR3, Land Rover Range Rover Sport, Lexus GX, and Volkswagen Touareg.
- High-end luxury SUVs feature base MSPs from approximately $60k to $100k. Vehicles in this category include the Cadillac Escalade, Lincoln Navigator, Infiniti QX56, Porsche Cayenne, Mercedes-Benz G-Class, Mercedes-Benz GL-Class, Lexus LX, and Land Rover Range Rover.
Luxury crossover SUVs edit
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 MSRP 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, Lincoln MKX, Volvo XC60, Volvo XC90, BMW X5, Audi Q7, Infiniti FX, Buick Enclave, Cadillac SRX and the Mercedes-Benz R-Class.
Luxury pickup trucks edit
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 2007, several luxury pickup trucks are on the market, like the Lincoln Mark LT and the Cadillac Escalade EXT.
Canadian definition edit
The Canadian market follows the American models of luxury segments. However, the price segments can differ from U.S. counterparts.
For vehicles such as smart fortwo, although the base model costs more than the 4/5-door subcompact or compact cars (in some cases, even compact cars loaded with factory options) for the same market, and was sold through luxury brand dealers, are not commonly regarded as luxury vehicles.
Entry-level luxury edit
The low end record for this segment is held by the 2007 Acura CSX, which has the base MSRP of CAD$26,990.
Luxury car manufacturers edit
Using the same American definition outlined above, if a car manufacturer's average MSP of all vehicles sold is greater than $36,000, then it is a luxury car manufacturer. While this definition is based on American market MSPs, it can be used globally to identify luxury marques. Vehicle manufactures can also be deemed luxury by the luxurious qualities of their cars and not just the price (as in with Chrysler, whose goal is to “provide luxury cars at affordable family prices”). Luxury cars emphasize comfort, technology, and features. Performance cars, though generally are categorized as luxury due to their prices, emphasize performance and speed.
Current luxury car manufacturers edit
These are luxury car manufacturers whose models are currently on the market.
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Past luxury car manufacturers edit
These are luxury car brands that used to exist but have since been either bought up or disappeared from the market due to bankruptcy.
References edit
- ^ "Kelly Blue Book, Lincoln Town Car, example of a luxury car". Retrieved 2007-01-13.
- ^ a b c High-End and Mid-level Luxury Definition
- ^ "Consumer Behaviour of Luxury Automobiles:A Comparative Study between Thai and UK Customers' Perceptions" (PDF). mubs.mdx.ac.uk. Retrieved 2008-01-28.
- ^ All three vehicles have base MSRPs of above $36,000 and the Hummer H1 is made by a company whose entire lineup, with exception of the Hummer H3, features base MSRPs in excess of $50,000. Yet all three lack the comfort needed to make them luxury vehicles.
- ^ [1]
- ^ [2]
- ^ [3]
- ^ [4]
- ^ Ultra Luxury Definition
- ^ Maynard, Micheline (2006-04-17). "Lexus enters ultra-luxury arena". International Herald Tribune. Retrieved 2007-11-21.
- ^ Pearley Huffman, John (2007-04-19). "Full Test: 2008 Lexus LS 600h L, ultraluxury class". Edmunds. Retrieved 2007-11-21.
See also edit
