A luxury car is a motorized vehicle to deliver increased levels of comfort, equipment, amenities, quality, performance, and status relative to regular cars for increasing your price.
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The expression is subjective and reflects both qualities of the car and therefore the brand image of its manufacturer. Luxury brands rank above premium brands, though there is no fixed demarcation between two.
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Traditionally, most luxury cars were large vehicles, though smaller sports-oriented models were always produced. “Compact“ luxury vehicles which include hatchbacks, and off-road capable sport utility vehicles, are relatively modern trends.