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What Is a Luxury Car?

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luxury cars

Luxury cars are about much more than the shiny badge on the rear, and they’re usually priced to reflect that. These are cars that set a high bar for quality and presentation, and they’re intended to impress and delight the driver, passengers and passersby alike. They also tend to boast higher performance ratings and better safety ratings than mainstream cars, while offering more comfort and features than their less-expensive counterparts.

There isn’t a single definition of a luxury car, but it generally encompasses vehicles that are significantly more expensive than mainstream models. This includes models from well-established luxury brands as well as the top-of-the-line vehicles from non-luxury manufacturers. For some, the term may also be applied to certain premium hatchbacks or SUVs, especially if they offer an exceptionally premium ride experience.

Most luxury cars feature high-quality, sometimes exotic materials in the interior. They are also typically designed to be a joy to drive, with excellent handling, powerful engines and impressive acceleration. The driving experience is the main difference between luxury and mainstream cars, and a true luxury car should deliver an exceptional driving pleasure that makes the buyer feel rich and pampered.

The auto industry’s definition of a luxury car has evolved with consumer demands. While traditional sedans from marquees such as Mercedes, BMW and Audi still make up the majority of luxury cars sold, demand for SUVs is increasing rapidly. Luxury car manufacturers are responding by offering a wide range of luxury SUVs with features such as isolating ride and noise refinement, ample cargo space, and plug-in hybrid and full electric powertrains.

Unlike mass-produced cars from major domestic manufacturers, luxury vehicles usually feature unique styling that sets them apart from their mainstream counterparts. For example, the Acura TLX and Alfa Romeo Giulia are both praised for their distinctive designs as well as their impressive feature content. Luxury car makers often strive to create a distinct identity for their models, with many featuring a standalone platform that isn’t shared with mainstream vehicles from the same brand.

This approach allows the luxury cars to set a high bar for design excellence and engineering. But the market is becoming increasingly competitive, and automakers are now adding features that used to be exclusive to luxury vehicles, including smartphone-as-key technology and augmented reality head-up display capabilities.

While the world of luxury cars is a constantly shifting landscape, it remains dominated by German makers such as Mercedes-Benz, Audi and Porsche, with VW’s parent company, which also owns Bugatti and Bentley, taking third place. Volvo also offers a strong entry in this category with its sleek, distinct designs and plush interiors.

Outside of Germany, a number of luxury marques are making a name for themselves. Acura and Lexus are two reputable names that have been around for decades, while Ferrari and Lamborghini have an illustrious history but are still relatively new to the U.S. Alfa Romeo recently re-launched its presence in the U.S. and is gaining popularity with its slick Giulia sedan and sporty Stelvio coupe.

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