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While defining what constitutes a "luxury car" is somewhat subjective, guidelines such as price, design, comfort, and prestige that 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 which the car carries.

In the 2000s, defining "luxury car" is more difficult, because many vehicles such as the GMC Yukon or the Chevrolet Suburban are 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. [3]

Many high priced prestige vehicles, such as the Porsche 911, Alfa Romeo GTV, most Ferrari and many Lamborghini are classed as luxury vehicles, when they lack many of the amenities of typical luxury vehicles. Other vehicles, such as the Mercury Grand Marquis, are not considered to be luxury vehicles due to their relatively low MSRPs, despite their numerous in-cabin comfort features.

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.

Entry-level luxury

The Mercedes-Benz C-Class is an entry-level luxury sedan with a base MSP in the general range from $29,000 to $38,000

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 Alfa Romeo 156, Buick Lucerne, Cadillac CTS, BMW 3 Series, Lexus IS, Lexus ES, Audi A4, Mercedes-Benz C-Class, Infiniti G35, Lincoln MKZ, Volvo S60, Saab 9-3, and the Jaguar X-Type.

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 $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 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, Holden Caprice, Holden Statesman, Volvo S80, Audi A6, Saab 9-5, Lexus GS and Jaguar S-Type. There are also some flagship sedans in this segment. The Citroën C6, Alfa Romeo 166, Cadillac DTS, Lincoln Town Car, Infiniti M35/45 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.

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 segment

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.[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, Mercedes-Benz S-Class, BMW 7 Series, Audi A8, Cadillac STS-V, and the Jaguar XJ. 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.

This segment is operated under various German, British and Japanese nameplates, with some limited American nameplates.

Ultra-luxury segment

Currently, all cars in the ultra-luxury segment are priced at approximately $100k or higher.[4] 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, Lexus LS 460 L, Mercedes-Benz SL500, or the Audi A8 can be included in this category. The Cadillac XLR-V convertible can also be included in this class, though it is also considered a sport/halo car. The Volkswagen Phaeton W12 (not V8) and Toyota Century (JDM) 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 SUVs

Lexus LX is a high-end SUV

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.

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 FX, Audi Q5, Mercedes-Benz GLK-Class, BMW X3, Volvo XC50, Volvo XC60, Saab 9-7X, Land Rover Freelander, Cadillac SRX, 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, Porsche Cayenne, Audi Q7, Mercedes-Benz M-Class, Mercedes Benz GL-Class, Volvo XC60, Volvo XC90, Saab 9-7X, Land Rover LR3, Land Rover Range Rover Sport, Lincoln Navigator, Cadillac Escalade, Toyota Land Cruiser, Lexus GX, and the Infiniti QX56.
High-end luxury SUVs feature base MSPs from approximately $60k to $100k. Vehicles in this category include the BMW X5, Mercedes-Benz G-Class, Lexus LX, Cadillac Escalade ESV, Lincoln Navigator L, and Land Rover Range Rover.

Luxury crossover SUVs

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, Lincoln MKX, Volvo XC90 BMW X5, Audi Q7, Infiniti FX45, Cadillac SRX, and the Mercedes-Benz R-Class.

Luxury 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.

Canadian definition

The canadian market follows the American models of luxury segments. However, the price segments can differ from US 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

The low end record for this segment is held by the 2007 Acura CSX, which has the base MSRP of CAD$26990.

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European definition

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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.

anufacturers

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, Audi, BMW, and Mercedes-Benz are the traditional luxury manufacturers, but manufacturers such as Saab, 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 the number one luxury carmarker in the United States[1]. Infiniti plans to launch in Europe in 2007 (Russia and Ukraine). At the top end of the spectrum, Bentley, Maybach and Rolls Royce are above all the previous 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), like Aston Martin, Porsche and Maserati). Land Rover created the luxury 4x4 off-roader category with the Land Rover Range Rover.

Segments

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 € 25,000 up to € 40,000. This includes vehicles such as the Acura TL,Alfa Romeo 159

, Audi A4, BMW 3 Series, Cadillac CTS, Jaguar X-Type, Lancia Lybra, Lexus IS, Mercedes-Benz C-Class, Volvo S40, Volvo S60, Infiniti G35 and Saab 9-3.

Executive cars (German: Obere Mittelklasse; French: Grandes Routières) are usually between 4.75 and 4.90 m long, with prices between € 35,000 and € 50,000. 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 STS, Citroën C6, Jaguar S-Type, Lancia Thesis, Lexus GS, Mercedes-Benz E-Class, Rover 75, Saab 9-5 and Volvo S80. Some 4x4s which would fit this category are the Land Rover Discovery (also known as Land Rover LR3), 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 € 40,000 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 U.S. the Lincoln Town Car, Cadillac DTS, Infiniti Q45 and SUVs such as the BMW X5, Cadillac Escalade as well as the Lincoln Navigator are also included in this category.

Luxury car manufacturers

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 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.

, Alvis

References

Kelly Blue Book, Lincoln Town Car, example of a luxury car. Retrieved on 2007-01-13.
High-End and Mid-level Luxury Definition
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.
Ultra Luxury Definition