The meaning of luxury has always been a relative term, but 65% of affluent people agree that this definition has changed for them compared to five years ago due to the economy. Luxury has changed by having a lower bar, and it has become smaller, more personal and purchased more frequently. Consumers are purchasing more “treats” for themselves more frequently but at a lower price.
Additionally, the traditional meaning of luxury cars has also changed. In regard to cars, luxury used to refer to size, space, comfort and presence. Today, luxury refers to the way a vehicle feels. Luxury is not related to price. The car, dealer, reputation of the brand, and the satisfaction of owning a car brand is what makes a car luxury.
There have also been new car companies that have entered the car industry. Telsa and Fisker have created expensive electric cars. It is believed that our typical luxury car producers will start to create electric plug-ins that sells for more than the V8s. The luxury end cars are also becoming more environmentally friendly.