Are you interested in selling luxury cars? If so, you need to know who the target market for luxury cars is.
Many people assume that only the wealthy drive luxury cars, but this isn’t necessarily the case. In fact, many people purchase luxury cars even though they may not fall into the traditional “high income” category. And then some companies purchase luxury cars too.
So, what drives people to buy luxury cars? Let’s take a closer look at this question and find out!
Why Do People Buy Luxury Cars?
For many people, a luxury car is the ultimate status symbol. There’s something about driving an impressive car that makes you feel successful, powerful, and in control.
Luxury cars are also typically loaded with high-end features and cutting-edge technology, making them a joy to drive. And of course, there’s the simple fact that luxury cars are just plain fun. Whether you’re cruising down the highway or taking a leisurely Sunday drive, behind the wheel of a luxury car always feels like a special occasion.
So if you’re wondering why people buy luxury cars, there is really no shortage of reasons. Whether it’s for the status, the features, or just the sheer enjoyment, luxury cars offer something that other vehicles simply can’t match.
Who Is The Target Market for Luxury Cars?
To best understand the target market for luxury cars, we need to zero in on people’s needs and wants. Why does anyone want a luxury car? What is it that a luxury car gives them that a normal doesn’t?
Once we understand people’s motivations to buy something we understand their psychology and then we can craft marketing strategies to appeal to them.
Such needs-based segmentation gives us the following customer segments of the target market for luxury cars:
- People who love luxury
- People who love comfort
- People who want to feel successful
- People who like to have fun
- People who appreciate automotive engineering
- People who want the finer things in life
- People who have the need to show their wealth & status
- Businesses that need company cars
Let’s now look closely at each of these segments.
1. People who love luxury
People who love luxury cars are, quite simply, people who love luxury. For them, the car is just another extension of their lavish lifestyle. They want the best of the best and they’re willing to pay for it.
People in this segment tend to be wealthy individuals who have a high disposable income. But money isn’t everything to them – many of them will also have refined tastes and they know what they like.
And they will opt for luxury in all aspects of their lives – from the clothes they wear to the homes they live in, to the luxury hotels they frequent, and of course, the cars they drive.
2. People who love comfort
For people who love comfort, a luxury car is all about the ride. They want a car that’s smooth, quiet, and relaxing – a car that feels more like a living room on wheels than a machine built for transportation.
These people are often older individuals who are looking to trade in their trusty but aging sedan for something newer and more luxurious.
They may not be as wealthy as some of the other segments on this list, but they’re still willing to spend a significant amount of money on a car that will give them years of comfort and enjoyment.
3. People who want to feel successful
For many, the ultimate sign of success is owning a luxury car. It’s a tangible way to show the world (and themselves) that they’ve made it.
People in this segment tend to be young, upwardly mobile professionals who are looking to make a statement. They may not have the same disposable income as some of the other segments, but they’re often willing to take out a loan or lease a car to drive the luxury vehicle of their dreams.
4. People who like to have fun
For some people, luxury cars are all about the thrill of the ride. They love the power and performance that these cars offer and they enjoy taking them out for a spin on winding roads or open highways.
People in this segment are often young and single, with a healthy disposable income. They’re not as concerned about status or comfort as some of the other segments – for them, it’s all about the driving experience.
5. People who appreciate automotive engineering
This segment is made up of people who truly love cars. They’re passionate about the engineering and design of these machines and they enjoy learning about all the different features that luxury cars have to offer.
People in this segment are often well-educated, with a deep understanding of how cars work. They’re not as concerned about status or comfort as some of the other segments – for them, it’s all about the engineering and the power.
In fact, this is the segment that car manufacturers like BMW try to attract with their “Ultimate Driving Machine” slogan.
6. People who want the finer things in life
People who appreciated the finer things in life are slightly different than those who love luxury (our first segment). This group of people still wants the best of the best, but they’re more interested in quality than quantity.
They’re willing to pay top dollar for a car that’s been expertly crafted and designed with care. They want a vehicle that’s going to last them for years (or even decades) and they’re not afraid to invest in it.
They will also be interested in other aspects of fine living like wine, art, fine dining, and fashion.
7. People who have the need to show their wealth & status
For some people, luxury cars are all about the status. Their need is to show the world their wealth and perceived status.
This segment of the target market for luxury cars cares neither for luxury nor cars. Their interest is in flaunting their wealth and being seen in their luxury cars.
The cars these people purchase are often ostentatious and attention-grabbing. We’ve all experienced that feeling when we pull up to a red light next to a bright yellow sports car with an exhaust that sounds like it came from a race track.
Contrary to popular belief, these people aren’t always young. In fact, many are older individuals who have finally reached a point in their lives where they can afford to purchase the car they’ve always wanted.
8. Businesses that need company cars
The last segment of the target market for luxury cars that we will study is not individuals but businesses.
Many businesses purchase luxury cars to provide company cars for their employees. These vehicles help businesses project a certain image and can be used as a marketing tool.
They also offer businesses a way to reward and retain top talent by offering employees an attractive perk.
Conclusion
The target market for luxury cars ranges from people who love living a life of luxury to businesses trying to give the best perks to their top employees.
Luxury cars can also be very comfortable, attracting people who crave comfortable things in life.
Luxury cars are also a status symbol for those who want to feel successful in their lives or need to show off their wealth and status.
People who love engineering and how cars are built find pleasure in luxury cars for very technical and geeky reasons. But they aren’t the only ones finding pleasure. People who appreciate the finer things in life also gravitate towards luxury cars.
And finally, businesses use luxury company cars to attract and retain their top employees and executives.