Understanding the Difference Between Luxury and Premium Cars

For many years, the gap between luxury and premium vehicles has been decreasing, at least when it comes to fancy features and reliability. Still, the two kinds of vehicles shouldn’t be confused. Some people believe premium cars are just cheaper versions of luxury cars. That is not true because luxury and premium cars are actually different!


Luxury cars aren’t just expensive vehicles. There’s more to them than their price. Now, it is true they are known for their high-end features and powerful engines, but there is also a certain mystique about them. Purchasing a luxury car is an emotional decision that can be, according to Earnest, a milestone. There’s little logic behind it. You might care about the automatic parallel parking and automatic braking system, but you can get those in a premium car. When you see a Rolls Royce or Bentley, the first thing that might come into your mind is whoever is driving that car must be wealthy. That’s what is so great about them. They confer prestige and high social status to their owners. Luxury brands are all about uniqueness, showing the world your level of success, and standing out from the crowd. When companies advertise these vehicles, they aren’t interested in lowering their prices or stimulating demand. Quite the opposite, they want only a few selected individuals driving them. Luxury brands need to make sure their cars are scarce and rare. That way, they can keep their position in the market as the sole providers of exclusivity.


According to Avis, premium and luxury vehicles tend to have very similar safety features associated with them. For example, they both might have curtain airbags, anti-lock brakes, and side-front airbags. However, they aren’t perceived the same way. Premium cars aren’t associated with high status, unlike luxury cars, even if they cost the same. It isn’t about portraying an image of exclusivity or success. The Nissan Altima is a clear example of this. It comes in different models, such as the S, SR, SV, SL, and Platinum, with the latter one being the premium version. Most people wouldn’t think the Altima’s driver is a highly successful executive.

Premium cars are about solving a problem in the market. They are there to provide customers high-quality features for a low price. When companies build them, they are looking to please their clientele by giving them what they want. The marketing strategy for selling premium vehicles involves showing customers they can get the latest gadgets, stylish exterior, and luxurious interior for a fraction of the cost of luxury cars. The idea is to sell as many as possible, not make them scarce.

As you can see, luxury and premium cars are quite different. Although they may share features, their target audience is not the same. Luxury cars are for individuals that desire to show off their status. Those interested in high quality and affordability will find in premium vehicles what they are looking for. In the end, it all depends on what people crave or need.

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Christian Z

Editorial Staff at DAPULSE

Christian Z


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