Have you ever wondered why some people are willing to spend $40,000 to over a hundred thousand on a luxury car?
As it turns out, a luxury car is more than just a status symbol. There are several other reasons why some people will go all out to snag their dream cars.
In this post, we’ll talk about the psychology behind luxury car buying and what motivates people to spend their hard-earned cash on it.
Who are the Luxury Car Buyers?
Before we dig deeper into the reasons why people buy luxury cars, it helps to understand who these buyers are.
In today’s world, luxury shoppers consist of the youth—the GenZ and Millennials in particular.
Take note, however, that we’re not just talking about the rich but also the high-earners.
Statistics also show that half of the global luxury consumer population is made of Asian shoppers.
The luxury market is expected to continue to grow significantly. Baby Boomers are more interested in Lexus and Mercedes, while the Geb Xers prefer to drive Porches.
Top Considerations for Buying Luxury Cars
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Status Symbol
Research suggests that there are two types of buyers.
The utilitarian and hedonic.
Utilitarian shoppers purchase products based on needs and functions.
Meanwhile, hedonic shoppers buy things (including vehicles) mainly for self-promotion or to position themselves in a higher class in their community or society.
Needless to say, those who buy luxury cars care more about their social status and material wealth.
In addition, they do it to project an image. For example, some organizations let their employees drive luxury cars to elevate their brand reputation and quality.
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Passion
Over the years, the psychology behind luxury car buying has expanded from materialism to passion.
Some car enthusiasts are born with silver spoons, and for them, the primary reason for buying a luxury car is not to brag or show their wealth to the world.
They simply are passionate about cars that are unique and exclusive.
People who love cars will most likely want to have at least one vehicle that’s over the top. They put so much effort into saving money to accomplish this goal.
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Build Quality
While generally regarded as a status symbol, people get what they pay for when they buy luxury cars.
Without a doubt, luxury cars are at the pinnacle of quality. Each part and assembly is made of the highest-quality material.
Each model often costs hundreds of millions of dollars to develop.
This is exclusive of the manufacturing cost, labor, etc.
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Features
Furthermore, luxury cars have way more advanced features than regular vehicles. And often, these features aren’t available with other cars.
For example, Bentley’s infotainment pack features two in-headset displays and a drop-down 12-inch screen, plus 15G of space for your personal collection of music.
Meanwhile, Rolls-Royce, Aston Martin, and Porsche let you commission a vehicle to your exact specifications, including the interior trim.
Lastly, luxury car manufacturers take safety very seriously. High-end cars pack plenty of features you won’t find in an average car. These include custom rims, blind-spot warnings, hill-start assist, and telescoping steering wheels.
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High Worth
There’s something about expensive items that make people look forward to having them.
Luxury cars are super expensive because people are paying for exclusivity. In addition to their price tag, expensive cars will require high-quality maintenance and luxury car insurance.
Most luxury cars are sold in smaller quantities. The fewer models sold, the more pricey the car gets.
Many people consider luxury cars an investment because they have a high resale value, unlike regular vehicles that depreciate over time.
Plus, luxury cars bring personal satisfaction. They feel good to own, and they’re fun to drive.
Owning something that very few people can ever further elevates one’s status.
Some car owners end up being the only person in their city or region to own a particular model of a luxury car. This gives them a level of local fame that is personally desirable.
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Powerful Performance
Some people prefer luxury cars not only because they are fun to drive but also because they perform better than economy cars.
Because of their never-ending list of perks, performance capabilities, and features, premium cars get sold easily despite their skyrocketing price tags.
Luxury cars have enormous engines with high power output. The larger the powertrain, the more power the vehicle produces. Thus, luxury cars tend to be faster than economy models.
The majority of luxury cars are equipped with engines ranging from V6 to V12. In addition, newer models incorporate an all-wheel drivetrain.
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Over-the-top Customer Experience
Customer experience matters a lot for luxury brands. Consumers who spend more money on a product will have higher expectations not just in terms of quality but also in their overall experience.
Along with exclusivity and better performance, luxury car buyers get top priority and a better dealership experience.
Many times, they are also provided a personalized experience with plenty of perks and benefits.
It’s not surprising to know that customer experience is different with luxury products. Manufacturers of these cars are always finding new and innovative ways to excite and inspire their customers.
For example, some companies utilize video walk-around to show customers what they can do with their vehicles.
Meanwhile, Audi is offering “Audi at Your Door,” which is a premium online shopping experience designed to give customers peace of mind during the pandemic.
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Self-Esteem
In some cases, low self-esteem can also be a factor that influences whether or not a consumer will purchase a luxury item.
Even if they can’t easily afford it, some people are willing to break the bank to get their dream car.
In a paper published in the Journal of Experimental Social Psychology, researchers concluded that people buy luxury brands not only to create an impressive exterior but also to alleviate their psychological pain.
In other words, it makes them feel better.
Conclusion
Luxury cars will remain a status symbol in society. Being able to acquire one requires hard work and dedication.
Luxury car buyers are given high regard in their communities and project the image of success and accomplishment.
Apart from being a status symbol, there are many other reasons why people buy luxury cars. Premium cars are touted for their build quality, exclusivity, high worth, and powerful performance.