A luxury car is a car that delivers a higher level of comfort, equipment, amenities, quality, performance, and status relative to regular cars for a raised price.
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The idea is subjective and reflects the qualities for the car plus the brand picture of its manufacturer. Luxury brands rank above premium brands, though there isn't any fixed demarcation from 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 vehicles, are relatively modern trends.
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