A luxury car is a car or truck that provides a higher level of comfort, equipment, amenities, quality, performance, and status in accordance with regular cars for a raised price.
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The phrase is subjective and reflects both qualities from the car plus the brand image of its manufacturer. Luxury brands rank above premium brands, though there isn't really fixed demarcation between your 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 suv vehicles, are relatively modern trends.