A luxury car is a motor vehicle that gives a higher level of comfort, equipment, amenities, quality, performance, and status relative to regular cars for an enhanced price.
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The phrase is subjective and reflects both qualities on the car together with the brand picture of its manufacturer. Luxury brands rank above premium brands, though there is absolutely no fixed demarcation relating to the two.
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Traditionally, most luxury cars were large vehicles, though smaller sports-oriented models were always produced. “Compact“ luxury vehicles along the lines of hatchbacks, and off-road capable sport utility vehicles, are relatively modern trends.