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Luxury cars is a marketing term for a cars that provides luxury — pleasant or desirable features beyond strict necessity — at increased expense.
The term suggests a cars with higher quality equipment, better performance, more precise construction, comfort, higher design, technologically innovative modern, or features that convey an image, brand, status, or prestige, or any other 'discretionary' feature or combination of them. The term is also broad, highly variable and relative. It is a perceptual, conditional and subjective attribute that may be comprehended differently by different people; what may be luxury for one may be premium for another.
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,crossovers, or sport utility vehicles and to any size vehicle, from small to large—in any price range. Moreover, there is a convergence in the markets and a resulting confusion of luxury with high price: where there may have been a clear difference in price between luxury and others, there is no longer an absolute separation between premium and luxury, with what may be premium brands now more expensive than the equivalent so-called luxury ones.
Cars 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 cars than ownership of a car per se." Therefore, automakers differentiate among their product lines in "collusion" with the car-buying public. 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.
Luxury vehicle makers may either be stand-alone companies in their own right, such as BMW and Mercedes-Benz, or a division/subsidiary of a mass market automaker Badge engineering is often used for cost savings, for example, the Lincoln vehicles that are based on Ford platforms or Acura models derived from Honda.
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."