Top 5 Differences Between Premium and Luxury Cars

Top 5 Differences Between Premium and Luxury Cars

Jun 02

Top 5 Differences Between Premium and Luxury CarsThe line between premium and luxury class cars has become heavily blurred in recent years. From a marketing standpoint, manufacturers seem to use them almost interchangeably. As a result, it can be difficult for consumers to fully understand what they are getting when looking for a high-end vehicle. Here are the top 5 differences smart buyers can watch for.

Comparable Prices In New Vehicles

One of the easiest ways to separate premium class cars from their luxury counterparts is to take a close look at the price. In general, a new premium class vehicle will sit between $25,000 and $30,000 dollars USD, with some flexibility. Luxury cars, on the other hand, can see much higher prices. While using this metric it is important to look at several different dealers and account for geography since some variation between BMW car price in Singapore and US dealers are something to be expected.

Price Ranges Within A Single Brand

Automotive brands are always very aware of how the prices of the vehicles in their lineup compare to one another. As a result, it’s easy to compare the prices within a brand to get an understanding of where a car fits on the standard/premium/luxury scale. Premium vehicles will often be at the top of a standard manufacturer’s price range. The other vehicles presented with the same branding will be priced below the premium product.

Luxury cars are less likely to have many products in the same line that are less expensive. Whereas most standard manufacturers have to deal with a price ceiling of about $30,000 USD, luxury manufacturers have no such limit. As a result, the breadth of the line is going to extend much higher.

Luxury vs. Premium Features

With automotive technologies advancing at a rapid rate, the features included in premium cars are actually improving. With each new leap, technologies that used to be absolute luxuries are becoming more accessible. That said, most premium cars will focus on highly practical upgrades that increase comfort and drive ability while still keeping manufacturing costs down. Premium cars are likely to have individually adjusted heated seats or rear view cameras, but less likely to include luxury features like massage seating and night vision.

Recent Brand Reputation

Brands that spell luxury just by invoking their name are a thing of the past. While some manufacturers like Audi and Lexus are still holding on to their reputations, the market is really going a different way. Hyundai is a brand that is well known for making affordable, functional vehicles that are likely candidates for family vehicles or first time buyers, but they recently made their first foray into luxury branding with the 2015 Equus. Meanwhile, luxury brands like BMW have been offering stripped-down versions of their high-class vehicles for lower prices in order to attract a younger class of clientele.

In summary, buyers should pay attention to brand names, but make certain that their information reflects the most recent trends.

Overstatement vs. Understatement

The market for high-end vehicles has shown an interesting change in what consumers want from premium and luxury class vehicles. With the spending power of the middle class growing in many countries, including India and Singapore; a new brand of buyer has emerged. These buyers have enough money to feasibly buy any car they desire within reason, but may not want the social label of ‘big spender.’

As a result, many premium cars that are packed with features will maintain an understated image. Meanwhile, luxury cars that are labeled as such have no need to do so.