The demand for luxury cars may have slowed down in the past couple of years due to the economic downturn, but it gradually picked up when the economy started to bounce back. This goes to show that ultra expensive vehicles are still relevant despite diminishing purchasing power or declining wealth. This also means that people pay a premium for prestige, and one way to do this is to buy cars that only the filthy rich can afford. However, just like in the ordinary car category, these expensive cars have their own segments as determined by the car manufacturers themselves.
The categorization is further fuelled by public opinion and critics' no holds barred reviews. In short, the segmentation has evolved based on the perception of the movers and shakers. Automobile manufacturers have created these cars with the wealthy big spenders in mind, and for good reason. There is a niche market so exclusive that it is highly profitable for carmakers.
Unlike in the ordinary car segments, luxury cars are categorized mainly for its price. The higher the price, the more appealing it is to the buyer. Since the cars are not mass produced, they are considered scarce and ownership of the car says so much of the person's stature. Although the price is the main factor, other variables are still being considered, such as engine type, build, design, and other discretionary features not found in ordinary cars. From the exterior alone, the cars already wear the badge of prestige, but the real kicker is the interior with all the built-in features that would make even the Batmobile look drab.
While a car in the $20,000-$30,000 price range may be considered a tad expensive for the common man, it can hardly be categorized as a luxury car. It just barely makes it in the category. A little over that price point is considered an entry-level prestige vehicle. These entry-level wonders elicit enough admiration and attract too much attention, but they are considered lightweights in the luxury car segments. In other words, they are not prestigious enough. After all, some people from the upper middle class can still afford cars in that price range.
It's when the car price reaches the $60,000 to $100,000 price range that the disparity becomes evident. This also quickly separates the rich from the ultra rich. In this price range, high-end vehicles such as Audi, Mercedes Benz, Cadillac, and Jaguar, dominate the scene. And then, of course, there are the ultra luxury cars, which command a sickeningly high price above and beyond the $100,000 mark. Only multimillionaires and billionaires would dare own cars with emblems of Rolls-Royce, Maserati, Aston Martin, Porsche, Lamborghini, and Ferrari, to name a few. They may be in the shape of a limousine, a hatchback, a sports car, or a convertible, but regardless of the form, they sure exude prestige and opulence. Having one or two of these cars parked in the garage already shows that the owner is no ordinary person. He or she can be a Hollywood actor, a sports figure, a tycoon, an heiress, or simply a person with deep pockets.
