It is difficult to say if a car is a necessity or luxury. There’s an old saying, one man’s need is luxury for another. The world is evolving. Things considered as luxury once have swiftly turned into a necessity.
For some, a car is a status symbol and for others, it is a mode to commute to different places. In emerging economies, middle-class people are moving upward. For social status, they buy vehicles. Others seek comfort. They buy cars to ensure hassle-free traveling to their workplace.
With time, things are changing. Do you know that a few decades ago, owning a motorcycle was also social status? Well, all your assets are categorized into necessities and luxury.
In the context of consumer behavior, a study has proved that two types of motivations drive consumers to purchase vehicles. It can be utilitarian or hedonic.
The first is focused on positioning consumers are responsible and smart. Hedonic on the other hand is focused on elevating to a higher class or social status.
Trends in 2021:
COVID-19 pandemic has affected the automotive industry. In 2020, the global luxury market was valued at around $410 billion. The pandemic affected the luxury car market in the short run.
As a result, car manufacturers are adding more innovative features. They are developing next-generation vehicles with smart technologies. It is predicted that the demand for luxury vehicles would increase up to 18% by 2026.
Worldwide, it is expected that car sales will increase. The pandemic led to slowing the economy, which had a hit on the automobile industry.
So, whether buying a car as a luxury or buying it as a necessity, you must know the emerging trends. Awareness helps in making better decisions.
Let’s discuss what really a car is, a luxury or a necessity.
If you are planning to buy a car as a status symbol, then it is a luxury for you. If owning a car is not what you need, and you just enjoy it, it is a luxury.
How will you justify purchasing a luxury SUV as a necessity?
A luxury car market accounts for 6% of overall automobile sales in the United States. It is a small segment. The market also consists of used luxury cars. You can check these if you can’t afford a new one.
Here, we have discussed why a car can be a luxury for people.
1. Status Symbol
When buying a luxury car, the status symbol can be a motivation factor for buyers.
Many companies intend to convey that they are successful. So, they have their employees driving around luxury cars.
Some people spend on luxury vehicles to reflect that they’ve achieved a milestone.
Commonly, people craving material wealth and social status buy luxury cars.
Some people are just passionate about cars. Car enthusiasts love automobiles. They are emotionally attached to specific brands.
Such people look for a vehicle that satisfies them. They have educated buyers as they have relevant knowledge.
In the past few years, luxury items have expanded to time and passion. To satisfy pleasure, people buy luxury cars.
3. Brand Quality
The luxury car producers offer better quality. These are competitive in nature. For premium prices, higher value is offered.
When someone says luxury, we immediately think about the innovative features, quality, and satisfaction. Roll-Royce is offering premium quality. It is known for its excellence for over 108 years.
Consumers are ready to pay high prices for luxury. They want to have the best-in-class cars.
The world is commercializing rapidly. People are traveling long hours daily to reach their workplace. Economies are growing, and to keep u with the pace, a car is necessary.
Around 86% of Americans consider the car as a necessity. If you buy a car as a primary means of transportation, it is not a luxury.
In this context, the buyers are concerned about the features and options of the vehicle.
Driving a car is important for people. It offers autonomy and personal control. Some of the reasons to own a car are listed below:
1. Comfort and Convenience
How many of you have stood there waiting for cabs and missed out on attendance at college? Have been late to work just because you could not find a ride?
Well, a car is a necessity if you buy it for convenience. You can easily travel from one place to another. No more waiting.
It will make you independent. No more relying on public vehicles or carpools. You will be in charge of when and where you wish to travel.
2. Saves Time
Having your own car means you won’t have to wait for a cab, bu, or a ride-share. Just get ready, take your keys, and drive yourself.
Here we’re not talking about the traffic time. That’s a different thing. But, yes, having a car can facilitate you in setting your own schedule.
3. Necessary for Families
Having a car has its own pros and cons. If you have a family, it can make your life easier.
It’s not only about planning family road trips. But, you all can travel together. For a bigger family, a bigger car would be beneficial.
For families, public transportation is expensive. It can be a nightmare to find seats for everyone. Some might not even get a chance to sit together.
Having your own car would make it easier to travel safely. You won’t have to share space with strangers. It is great with children.
4. Your Car Gives you Freedom
Who doesn’t like freedom? Of course, everyone does. Owning a car would not only offer convenience but will also provide you freedom.
You can have complete over your car. And Also can choose your route and speed limit. You can easily visit your friends and family. It is a reliable mode of transportation.
We can say that a car can be a necessity as well as a luxury. For some, it is a mode of commute and for others, it is a status symbol.
With time, people have become smarter. They are making choices considering the economic situation. They gather information from different sources before making decisions.
Some people opt to buy used luxury cars. It satisfies their needs and also turns out less expensive.