Luxury vehicle is a marketing term for a vehicle that provides luxury — pleasant or desirable features beyond strict necessity — at increased expense (see luxury goods). The term suggests a vehicle 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.