coolsaber

Courtesy of Jalopnik

Toys4RJill

Not sure that this article really does a good job of convincing me that people will not pay more for a luxury brand. A luxury brand and has to "mean" something to the buyer. It has to convey something and show something. People who have the means will always pay for luxury brands.

For example, a Toyota Avalon and a Lexus ES350 are pretty much the same car, feature for feature they are the same and I think the Avalon has more luxury features such as rear heated seats, rear climate and standard leather. The Avalon is a not a true luxury car while the ES350 is.

“If there is little difference, why pay more? Exclusivity may not be enough.”

Actually, consumers pay more for less luxury in some circumstances.

Stroock639

my car cost $55,000 in 1999 and despite being worth less than a tenth of that now it still totally craps on even a brand new avalon so i'm convinced it's worth the price. a good "luxury" car will have a way of effortlessly and smoothly wafting it's occupants down the road in a way that "average" cars don't and that couldn't be more true in the case of the lexus

to answer the question, i guess it depends on which luxury car you get. i can't see justifying paying extra for an ES but there's no regular toyota that even comes close to being able to deliver what the LS can.

Aron9000

^ Thing is the LS is the flagship, it damn better well be better than a mass market Toyota, and it is on a whole different level, even older ones. It also costs a ton of $$$$.

The thing is, I can see in that lower end, 30-45k range, that mass market nameplates like Ford, Honda, and Buick, for example provide a lot more bang for your buck, and not in just features, but in the way the car drives as well. I mean would you rather have an AWD twin turbo V6 Fusion with 320hp, heated/cooled leather seats, keyless entry, navigation, blue tooth, all the fancy infotainment stuff and driving aids for $35k???

Or you can have a smaller BMW 320i with RWD, 180hp, vinyl, manually adjustable seats, no drivers aids, no wood trim, no navigation, etc for 35k. Plus BMW softened up the suspension and numbed the steering on their base cars, even the driving dynamics are no longer a compelling argument to get the BMW.

Toys4RJill

I get what you are saying, but people want the badge and what the image of the car portrays.

Hoovey689

iTrader: (16)

That there is a great example of the power of a badge.

To be quite honest, with the parity that seems to be happening to these automakers. Some of the blame has to be on the Luxury makes themselves. Vehicles like the 320i are a great example of diluting the 'Luxury' of the badge by being so commonly available. Reasoning being lower cost of entry to the brand and fuel efficiency to name two, but the sword cuts both ways.

MattyG

It's true that regular mass market brands have all the bells and whistles that the luxury car makers also have. But really this is what happens in the automotive world. Some big premium luxury car maker introduces a new feature at the leading edge - and after a couple of years that feature or group of features trickle down to regular brands.

Things like radar distance cruise control, blind spot monitoring, lane departure warning and any number of other things that are just taken for granted on mid-level and even lower tier cars all came from somewhere. Someone had to develop them and bring them to the marketplace where the early adopters ponied up for them.

Really the big thing with premium top tier manufacturers has always been their luxury, brand-snobbery, and of course their performance. Your turbo Fusion might be a quick car and hold a good amount of cruise speed, but really the luxury car brands have cars that do all that effortlessly with no strain. Your loaded up mid-level vehicle won't do well if you push it at high speeds all the time. But yeah, the lines are getting more blurry because of the tech that eventually finds it way downmarket.

Hoovey689

iTrader: (16)

The Fusion Sport is going to cost you $20K less than that 'equivalent' 535i for six cylinder hp. Otherwise you're getting a 528i 2.0T for a closer but still far off price, and inherently six is smoother than four. Besides why wouldn't the 'Sport' Fusion hold up? Isn't that its job vs the plebeian 2.5 and 2.0T, and the efficient Hybrid and PHEV

The Luxury makes might no longer be able to use feature content as a differentiator, but they can use material quality and assembly for a bit longer. Aside from that it will be the buying and servicing experiences that shape the 'Luxury' image.

BrownPride

In my experience "luxury" vehicles are almost always more refined, better styled, and have better interior quality of materials than "mainstream" vehicles. The latter often have all the gadgets and gizmos that debuted in the luxury makes but the key is that the luxury vehicles always debut those technologies first. And if you're a performance junkie there's little denying that the powertrains of luxury cars are superior.

Then you have the brand image. A friend of mine picked up an Acura ILX over a comparably-priced Accord because of the image that goes with an Acura over a Honda. The Accord had just as nice materials if not better, superior build quality, better tech, and was quieter, but at the end of the day it's still has a "regular Joe" nameplate. The ILX was nice to look at and peoples' eyes popped when they heard the name "Acura" even though half the Toyotas, Hondas, Fords, etc. in your average Costco parking lot are more expensive.

Call my snobby but I fit the mold as well, I'd rather buy a lightly used luxury car over a new generic brand car. That's exactly how I got my current Lexus for roughly the same price as a new Camry SE with moonroof (no Entune or anything fancy). My reason is not because I'm 20-something d-bag who wants to show off, but because I'm an 20-something d-bag who loves and enjoys nice cars.

MattyG

Yes but at the end of the day it's still a Ford Fusion. And it's FWD rather than what a true luxury car meant for blasting around on the autobahn at ridiculous speeds will do. I don't know of any car buyer who cross shops a Fusion with a BMW or an Audi. in Europe maybe with the Mondeo but in these burgs it is really about pedigree and sporting heritage. You pay to play and Fusions are Joe DillBilly while Mercs and Bimmers are for Pretentious Marcelle and his trophy wife.

Heck even Lexus does this doesn't it? LS, GS, IS... rwd with premium quality materials and reliability to boot. Fusion is a nice car and I like it, but it ain't no rip-roaring V8 Lexus or Merc. That's what the extra money gets you.

aztr0

For the brand and what is associated with it. Why would someone choose generic over brand name detergent? Why would anyone buy Nikes over Payless? Same deal. I've driven an old Accord and when I shut the door and heard the tin can sound, I know its not that high quality. I mean the car ran into the 200Ks and probably still would run more if my father didn't get give it away. Once I drove the RX330, it was hard to go back to the other brands. I've tested several other cars, it just isn't the same feel to me.

Hoovey689

iTrader: (16)

True its still a Fusion, but unless the consumer is getting a CPO 535i, odds are they they would have to settle on a 528i if they wanted new. It's a steep price to pay for a badge when new. ​Those rip-roaring V8's again unless CPO, won't be less than $60K. But then AMGs and M's are not the target for the Fusion Sport hah.

Then Audi's are just a bunch of gussied up AWD VW's and not Luxury enough

As long as there is a notion that 'Luxury' cars are better than 'Non Luxury', they will be able to continue to hold their revered status.

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Similarly I had created a thread a few years ago called 'Unequal Automakers', it was more to address that while there was a parity happening in the automotive industry, certain makes mainly from Europe rely on their prestige and get away more than their Asian and American counterparts. (Thread focused more on the Luxury makes)

mmarshall

I'm not sure I follow you here. One one hand, you claim the Avalon and ES are the same car (which, I agree, is true in a number of ways)......then state that one is a luxury product while another is not. Since Toyota softened the non-Touring Avalon's ride this year, it blurs the lines between the Avalon and ES even further (past Avalons had been soft-riding, but then were firmed up too much for 2014).

I will agree with you on one thing, though.....the ES seems to have a better-quality interior. The present Avalon's interior looks nice and plush on the surface....but, IMO, under that plush-veneer is some very flimsy thin-plastic parts, especially on the dash and console. The current ES also suffers in comparison to its ES predecessors, but still has interior parts that are slightly better than the Avalon's.

Aron9000

I was just using the Fusion Sport as an example, which is AWD, not FWD. I know people won't cross shop a BMW and a Fusion, but I will maintain that the Fusion Sport is a superior car vs a 320i that costs the same $$$$. The gap becomes even more glaring when you compare the Ford to the entry level Benz, the CLA, which has to be the most cramped 4 door car I've ever been in. Also the Fusion and the Mondeo are the exact same car now days, just different engine options for Europe and USA.

For something a bit more compelling as to why you buy the Joe Dirt badge, go compare a loaded Honda Accord Touring with the V6 vs the entire Acura lineup. Now that's a sad state of affairs right there, the Acura sedan lineup, they all look like an Accord and the interior appointments aren't that much better(or way worse in the ILX) About the only thing they have going for them is the trick AWD system, which is optional(should be standard IMO)

mmarshall

I think Aron's got a point. The Fusion is a excellent product....better, in some ways, than last year's Lincoln MKZ sedan, its upmarket brother, though I haven't seen all of the new MKZ facelift up close this year...just the exterior. No way, though, would I have chosen a Fusion over the last-generation BMW 335i....the old 335i was a gem, though a rather expensive one. But BMW is really messing up many of their cars with the new redesigns......I'm not sure I'd take a new 3-series over the latest Fusion.

(BTW, I used the Ford pre-paid Mastercard offer this year on a Fusion test-drive/review (the ones they sign you up for at the D.C. Auto Show). I was very impressed with it....and I'm not just saying that because they paid me to drive it.