Categorization of luxury cars by price points

The demand for luxury cars may have slowed in recent years due to the economic downturn, but it gradually picked up as the economy began to recover. This shows that ultra-expensive vehicles remain relevant despite declining purchasing power or declining wealth. This also means that people pay a premium for prestige, and one way to do this is to buy cars that only the filthy rich can afford. However, just like in the ordinary car category, these expensive cars have their own segments determined by the car manufacturers themselves.

The categorization is further fueled by public opinion and unrestrained criticism from critics. In short, segmentation has evolved based on the perception of those who move and shake. Automakers have created these cars with the wealthy spendthrifts in mind, and for good reason. There is such an exclusive market niche that it is highly profitable for car manufacturers.

Unlike ordinary car segments, luxury cars are primarily classified by price. The higher the price, the more attractive it is for the buyer. Since automobiles are not mass produced, they are considered scarce and car ownership speaks volumes about a person’s stature. Although price is the primary factor, other variables such as engine type, construction, design, and other discretionary features not found in ordinary cars are still being considered. From the outside alone, the cars already carry the prestige badge, but the real kicker is the interior with all the built-in features that would make even the Batmobile look drab.

While a car in the $20,000-$30,000 price range may be considered a bit pricey for the common man, it can hardly be classified as a luxury car. It barely makes it in the category. A little more than that price is considered an entry-level prestige vehicle. These entry-level marvels command enough admiration and attract too much attention, but they’re considered lightweights in the luxury car segments. In other words, they are not prestigious enough. After all, some people in the upper middle class can still afford cars in that price range.

It is when the price of the car reaches the $60,000 to $100,000 price range that the disparity becomes apparent. This also quickly separates the rich from the ultra-rich. In this price range, high-end vehicles like Audi, Mercedes Benz, Cadillac and Jaguar dominate the scene. And then, of course, there are the ultra-luxury cars, which are disgustingly high in price above the $100,000 mark. Only billionaires and billionaires would dare to own cars bearing emblems of Rolls-Royce, Maserati, Aston Martin, Porsche, Lamborghini and Ferrari, to name a few. They may be shaped like a limousine, a hatchback, a sports car or a convertible, but regardless of form, they exude prestige and opulence. Having one or two of these cars parked in the garage already shows that the owner is not an ordinary person. He or she may be a Hollywood actor, a sports figure, a tycoon, an heiress, or just a person with a lot of money.