A luxury car is your car providing you with a higher level of comfort, equipment, amenities, quality, performance, and status relative to regular cars for an enhanced price.
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The concept of is subjective and reflects the qualities of this car and also brand image of its manufacturer. Luxury brands rank above premium brands, though you don't have fixed demarcation between the two.
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Traditionally, most luxury cars were large vehicles, though smaller sports-oriented models were always produced. “Compact“ luxury vehicles similar to hatchbacks, and off-road capable sport utility vehicle vehicles, are relatively modern trends.