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Luxury vehicle

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File:2007 Town Car.jpg

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)Edit

2007GrandMarquisInterior

Woodgrain and Leather trim is one of the most iconic luxury car attributes

While a luxury car is difficult to define as it is somewhat subjective, there are certain guidelines by which the luxury cars are defined. These guidelines include price, design, comfort, and prestige. Although this definition is based on a rough estimate and subjectivity, it will serve the purpose of this article.

Perhaps the least subjective of these criteria is the issue of price. The price criterion used in this article was derived by using the Kelly Blue Book (KBB) in the following fashion. The cheapest luxury car made by a non luxury car manufacturer listed on KBB is roughly $36,000, therefore it is reasonable to define a luxury car manufacturer as one with a Mean Selling Price (MSP) in excess of $36,000 USD. A luxury car, on the other hand, is either one made by a luxury car maker, or if its base MSP is more than $36,000.

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. Features such as interior leather and woodgrain are common amenities. This again is subjective, but there is a reasonable ability for people to make this determination.[1]

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 Audi A4 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 vehiclesEdit

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 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 MSPs in excess of $50,000. Yet all three lack the comfort needed to make them luxury vehicles. Furthermore, many non-luxury high priced prestige vehicles, such as the Porsche 911, Alfa Romeo GTV, most Ferrari and many Lamborghini 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.

Luxury market segments (for American cars)Edit

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 luxuryEdit

File:2007MKZ.jpg

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. The equivalent classification in the United Kingdom 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 TL, Alfa Romeo 156, Cadillac CTS, Lincoln MKZ, BMW 3 Series, Lexus IS, Lexus ES, Audi A4, Mercedes-Benz C-Class, Infiniti G35, Volvo S60, Saab 9-3 and the Jaguar X-Type.

Mid-luxury segmentEdit

File:07Marquis.jpg

In order to be considered part of the middle-luxury segment, a vehicle should feature a base MSRP between approximately $36k and $60k[1], 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 the United Kingdom, 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, Audi A6, Saab 9-5, Lexus GS and Jaguar S-Type. There are also some flagship sedans in this segment. The Mercury Grand Marquis, Lincoln Town Car, Citroën C6, Alfa Romeo 166, 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 (47%), Americans (30%) and Japanese (23%).

High-end luxury segmentEdit

File:07 LS.jpg

This category includes many flagship vehicles of luxury brands such as the Mercedes-Benz S-Class. Currently, all vehicles priced between the range of $60k and $100k are a part of this exclusive club.[1] 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 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 segmentEdit

File:07 Maybach.jpg

Currently, all cars in the ultra-luxury segment are priced at approximately $100k or higher.[2] 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), Hyundai Equus only in Korea 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 (20%) and Italians (5%).

Luxury SUVsEdit

File:2007 Navigator.jpg

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.

Luxury crossover SUVsEdit

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, Infiniti FX45, and the Mercedes-Benz R-Class.

Luxury pickup trucksEdit

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 three luxury pickup trucks on the market are the Lincoln Mark LT, GMC Sierra Denali,and Cadillac Escalade EXT.

European definitionEdit

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 US, the entry-level segment is not. Classification within "luxury cars" is more precise when considering the vehicle's size.

The definition of a luxury car is a little bit different from the United States, as the income in European Union is less than the Household income in the United States, and even between European countries.This happens due to the diversity of average income, taxation and tastes.For example, while an average German may spend 23000 € on a car, this figure may not be applicable to most Europeans.[3] As a result of these differences, the guidelines for what a luxury vehicles is vary across national borders within Europe. Besides, a car sold in the Netherlands or Greece may be 30% more expensive than the same model sold in Belgium.

ManufacturersEdit

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 Audi, Saab, and Volvo are now considered by many to fall into this category. Newer competitors like Acura, Lexus, and Infiniti have also become popular. At the top end of the spectrum, Bentley, Maybach 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 luxury sports cars (mainly grand tourers), like Aston Martin,Porsche and Maserati. Land Rover created the luxury 4x4 off-roader category with the Land Rover Range Rover

SegmentsEdit

Current compact executive cars (Mittelklasse in German) are cars between 4.50 and 4.65 m long, and equivalent of entry-level luxury cars in the United States. Generally speaking, the lower price range is approximately € 25000 up to € 40000. This includes vehicles such as the Acura TL, Audi A4, BMW 3 Series, Cadillac CTS, Jaguar X-Type, Lexus IS, Mercedes-Benz C-Class, Volvo S60, Infiniti G35 and Saab 9-3. 4x4s related to compact executve cars are the BMW X3, Nissan Murano and Land Rover Freelander. In Germany, these are not considered proper luxury cars, since they are extremely popular and some of them are overall best-sellers.

Executive cars (German: Obere Mittelklasse) are usually between 4.75 and 4.90 m long, with prices between € 35000 and € 50000. 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 STS,Jaguar S-Type, Lexus GS, Mercedes-Benz E-Class, Saab 9-5 and Volvo S80. Some 4x4s which would fit this category are the Land Rover Discovery (also known as Land Rover LR3), BMW X5, Mercedes-Benz M-Class, Audi Q7, Lexus RX and Volvo XC90.

Cars above 5.00 m are simply called luxury cars in the United Kingdom, or "Oberklasse" in Germany, and have a price above starting in the € 40000 range as well as a length commonly exceeding five meters. Luxury cars include the Audi A8, Bentley Continental Flying Spur, BMW 7 Series, Jaguar XJ, Maserati Quattroporte, Mercedes-Benz S-Class and Lexus LS. Similarly prized 4x4s are the Land Rover Range Rover, Range Rover Sport and Porsche Cayenne. In the US the Lincoln Town Car, Cadillac DTS, Infiniti Q45 and SUVs such as the Cadillac Escalade as well as the Lincoln Navigator are also included in this category.

Luxury car manufacturersEdit

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.

Current luxury car manufacturersEdit

These are luxury car manufacturers whose models are currently on the market. One does, however, need to consider that exclusiveness varies with brand. Some marques such as Cadillac, Mercury and Lincoln are considerably more upscale than others such as Volvo or Saab. That statement is not true. Maybach and Bentley in turn are quite a bit more prestigous than Mercedes-Benz or Cadillac. All of the following marques may, however, be referred to as luxury brands:

Past luxury car manufacturersEdit

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

ReferencesEdit

  1. 1.0 1.1 1.2 High-End and Mid-level Luxury Definition
  2. Ultra Luxury Definition
  3. febiac.be

See alsoEdit

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