AutomotiveAssemblyPracticeShiftinggears:Whatbuyersaresayingabouttheluxury-carexperienceHowdoestherealityofowningaluxurycarmatchthedream?AnewMcKinseysurveyshedslightonbuyers’priorities,currentexperiences,andfutureexpectations.byMicheleBertoncello,PatrickHertzke,andSimonMiddleton?GettyImagesMarch2025

Whileluxury-carbuyersprioritizethedrivingexperienceandgaingreatenjoymentfromit,theyalsoexpecttheirvehiclestoretain,orevenincrease,invalue.Otherhigh-endgoodstendtoappreciate,sobuyersoftenviewthisasaninherentcharacteristicofanyluxuryproduct.2Shiftinggears:Whatbuyersaresayingabouttheluxury-carexperienceLuxurycars,definedasthosevaluedatover$150,000,accountforasmallportionofvehiclessoldbutloomlargeindrivers’imaginations.Themostfamousbrandshaveinstantlyrecognizable,iconicdesignsthatsetfuturetrends;theyalsoprovidesuperiorperformancethatcommandsasignificantpricepremium.Thestrongappealofthesevehiclescansignificantlyboostacompany’svaluationandenhanceitsabilitytoofferotherluxuryproductsandexperiences.Moreover,theluxurysegmentappearstoholdagreaterprofitabilitypotentialforindustryplayersinaglobalautomotivemarketwithlimitedvolumegrowthexpectations.Wesurveyedandinterviewedmorethan150peoplearoundtheworldwhohadmadeorwereconsideringapurchaseofaluxurycartolearnmoreaboutthisinfluentialmarket.1Therespondentsrepresentedawiderangeofwealthsegments,butthevastmajorityhadannualincomesbetween$200,000and$1million.Ourfocuswasontheirneedsandmotivationsthroughouttheentirepurchaseandownershiplifecycle.Whatfactorspromptcustomerstoselectaluxurycarandhowloyalaretheytobrands?Andwhataspectsoftheluxury-carownershipexperiencearemostimportantorfallshortofexpectations?Giventherece