A luxury car is a car that provides above-average to high-end levels of comfort, features, and equipment. Often more expensive materials and surface finishes are used, and buyers expect better build quality. The usually higher pricing and more upscale appearance is often associated with higher social status of the users, compared to low and mid-market segment cars.
The term is relative and partially subjective, reflecting both objective qualities of a car, as well as the projected and perceived of the car marque. Luxury brands rank above premium brands, though there is no clear demarcation between the two.
Traditionally, most luxury cars were large vehicles, though smaller sports-oriented models were always produced. "Compact" luxury vehicles such as hatchbacks, and off-road capable sport utility vehicles, are more recent expansions of luxury qualities in various cars.
Increasing (comfort) features, materials quality, interior space, innovations, and or performance have consistently been competitive strategies between car makers, practically throughout the history of the automobile.
Car classification
Several car classification schemes include a luxury category, such as:
Australia: Since the year 2000, the Federal Government's luxury car tax applies to new vehicles over a certain purchase price, with higher thresholds applying for cars considered as fuel efficient. As of 2019, the thresholds were approximately AU66,000(US,000) for normal cars and AU76,000(US,000) for fuel-efficient cars.
Europe: Luxury cars are classified as F-segment vehicles in the European Commission classification scheme.
Italy: The term "auto di lusso" is used for luxury cars.
France: The term "voiture de luxe" is used for luxury cars.
Germany: The term Oberklasse (upper class) is used for luxury cars.
Russia: The term (автомобиль представительского класса ("representative class vehicle, also translated as luxury vehicle) is used for luxury cars.
Rental cars: The ACRISS Car Classification Code is a system used by many car rental companies to define equivalent vehicles across brands.
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