What makes a premium car/brand?

carsfan2 · 17-03-2019 10:54AM #1

A comment on another thread as to how main stream car makers are offering the exact same if not better product than what are considered “premium” manufacturers like Mercedes, BMW, Audi got me wondering what makes a car premium.
When I was younger premium cars were more expensive but better built and offered equipment not available on others cars. They could have bigger engines if desired and were not as common. They also held their value better than run of the mill cars.

Nowadays it seems the majority of cars are reliable and well built. They offer the same equipment as premium and a multitude of engine options.
All new cars lose a chunk in depreciation regardless of manufacturer too.
Finance packages make all cars more attainable nowadays too and premium brands are as common as any other cars on the road.
Some premium brands have big glass palaces to sell you their cars but does this influence us?
What are people’s feelings as to what makes a car or brand premium or upmarket nowadays? Is it snob value alone or is a merc etc really a better car?

Nonoperational · 17-03-2019 12:16PM

carsfan2 wrote: »

A comment on another thread as to how main stream car makers are offering the exact same if not better product than what are considered “premium” manufacturers like Mercedes, BMW, Audi got me wondering what makes a car premium.
When I was younger premium cars were more expensive but better built and offered equipment not available on others cars. They could have bigger engines if desired and were not as common. They also held their value better than run of the mill cars.

Nowadays it seems the majority of cars are reliable and well built. They offer the same equipment as premium and a multitude of engine options.
All new cars lose a chunk in depreciation regardless of manufacturer too.
Finance packages make all cars more attainable nowadays too and premium brands are as common as any other cars on the road.
Some premium brands have big glass palaces to sell you their cars but does this influence us?
What are people’s feelings as to what makes a car or brand premium or upmarket nowadays? Is it snob value alone or is a merc etc really a better car?

Marketing is a part of it for sure, but also the general fit and finish is just a little nicer in my opinion. I drive an A6, I'm under no illusion that its anything special, but I tested a decent number of other cars before I pulled the trigger and this was a nicer place to be than the more standard marques I sat in. My opinion only, mind.

bazz26 · 17-03-2019 12:41PM

Desirability would be a strong factor I'd imagine.

joujoujou · 17-03-2019 10:08PM

carsfan2 wrote: »

[...]
Nowadays it seems the majority of cars are reliable and well built. [...]

Exactly opposite.

carsfan2 wrote: »

[...] what makes a car or brand premium or upmarket nowadays? Is it snob value alone [...]?

^^ This. ^^ And price tag.

Ning · 18-03-2019 12:46AM

Herd mentality.

Interslice · 18-03-2019 01:31AM

In this country these days, a black 2 litre 4 cylinder turbo diesel less than 2 years old on loan. You've made it.

MTBD · 18-03-2019 01:44AM

It's a bit of a joke at this stage. If you want a family car with a bit of power and lots of extras you can pay €32k for a Opel Insignia with about 150bhp or you can pay €45k for an Audi A4. You will get almost all of the same options in both of them, you will get an unrefined 4 cylinder diesel in both if them, you will get roughly the same reliability in both of them. You will get somewhat nicer interior in the Audi but is it €13k nicer? Not in my book. The handling will be nothing to wrote home about in either.

It's all complete snobbery. If more people bought the 6 cylinder option from the premium manufacturers then I would understand. The difference between a 3.0 Audi and a 2.0 is night and day but people will not spend it as most people don't see the engine size. All they want is the badge. Pathetic in my view.

Pkiernan · 18-03-2019 08:04AM

Premium cars like the S class are so much quieter and more comfortable.
That's what you're paying for.

Wanderer78 · 18-03-2019 08:06AM

Marketing

Widdensushi · 18-03-2019 08:15AM

Going by the posts so far audi seems to be seen as a premium brand ?I would never see them as up there with BMW,Mercedes, Volvo etc, I suppose everyone has their own perception of what makes a premium brand.

18-03-2019 08:16AM

Luxury used to mean comfort, smoothness, power and options that were just not available on lesser brands.

Problem is now pretty much any car is available with all kinds of options/engines and is as reliable as the top brands.

It seems now that luxury means who has the biggest touch screen!

As for Ireland I wouldn't consider any car with a 4 cylinder diesel and manual box a luxury car regardless of brand.

theteal · 18-03-2019 08:59AM

Widdensushi wrote: »

Going by the posts so far audi seems to be seen as a premium brand ?I would never see them as up there with BMW,Mercedes, Volvo etc, I suppose everyone has their own perception of what makes a premium brand.

Yes, perception is most of it. I'd have Audi bundled with those brands you mentioned but it's a different category in my mind, it's the "not value for money" category and I have zero interest in them. While it's nice to have a bit of poke behind you, the first and foremost thing I look for in a car is reliability. The extra cost of those brands is definitely not ensuring less time in the garage - although I've an idea in my head that Volvo may be alright on that front.

kerten · 18-03-2019 09:08AM

In the past, extra money being paid to premium models were invested into designing better suspensions, engines, insulation, toys where non-premium brands were following a little bit behind. Now knowledge is hard to hide so all brands are competing on those without much difference.

But I still value years of know-how built up in brands like Mercedes, BMW. That doesn't mean they are building better cars than others but you notice years of development went into certain things in the car comparing to non-premium brand which is offering it for last 3 years.

Mad_maxx · 18-03-2019 11:44AM

Widdensushi wrote: »

Going by the posts so far audi seems to be seen as a premium brand ?I would never see them as up there with BMW,Mercedes, Volvo etc, I suppose everyone has their own perception of what makes a premium brand.

Volvo is less premium than Audi

In fact volvo status is lower today than thirty years ago

Wibbs · 18-03-2019 11:48AM

kerten wrote: »

In the past, extra money being paid to premium models were invested into designing better suspensions, engines, insulation, toys where non-premium brands were following a little bit behind. Now knowledge is hard to hide so all brands are competing on those without much difference.

This would be my take too K. When I was a kid, a long long time ago

something like a Merc or Beemer was a rare enough sight on the roads. If you ever get the chance to sit in a 70's Ford Cortina and then a 70's Mercedes you really see it. Driving them makes the differences clear. A relative of mine had a Mercedes and sitting in it was a different world compared to the average cars most people drove(another rellie had an Aston Martin and that was a different planet). It was bigger, more solid, more comfortable, with more bells and whistles and were considered much more reliable. There was a large gap between your average Ford and your average BMW. You were paying premium money, but you were generally getting a premium car. These days not nearly so much. The gap is much narrower.

Another factor is the wider availability of credit. Back in say the 70's you'd need a fair bit of cash saved up behind you to be getting into a Merc, even a used one, today many more people can buy into cars like that, so they're much more common and less "valued". To the degree that when they hit a certain age they can be had for "banger" money. Until the bills come...

Murt10 · 18-03-2019 12:44PM

Advertising executives in Head Office decide on what is a premium brand.

As I understand it for example most Audis, VW's, Seats and Skodas are virtually the same car under the skin, but they are each aimed at a different clientele, and priced accordingly.

They appeal to snob value.

ofcork · 18-03-2019 01:31PM

The problem is all the premium brands have been diluted too much with cars in every segment.

carsfan2 · 18-03-2019 02:59PM

The premium brands have all moved to increase market share and have moved into segments they previously ignored.
A class merc,1 series competing against golf etc.
Can something remain upmarket and premium if everyone can have it?

Mad_maxx · 18-03-2019 08:57PM

carsfan2 wrote: »

The premium brands have all moved to increase market share and have moved into segments they previously ignored.
A class merc,1 series competing against golf etc.
Can something remain upmarket and premium if everyone can have it?

Good question

Premium is about exclusivity in some shape or form

shirazhyder84 · 18-03-2019 09:19PM

As previously mentioned, its more of badge snobbery now otherwise audi/merc/bmws arent value for money or premium anymore. I drive a 151 passat and extremely happy with it but my colleagues and friends keep asking the same question: when will you move up to audi/merc/bmw. I always ask them what more will i get by paying 20-25% more. Response: "you will be driving an audi/merc/bmw rather than a VW".

Pac1Man · 18-03-2019 09:28PM

shirazhyder84 wrote: »

...my colleagues and friends keep asking the same question: when will you move up to audi/merc/bmw. I always ask them what more will i get by paying 20-25% more. Response: "you will be driving an audi/merc/bmw rather than a VW".

Good grief! It's always people who have no idea about cars who offer that line of thought too.

colm_mcm · 18-03-2019 09:36PM

Pac1Man wrote: »

Good grief! It's always people who have no idea about cars who offer that line of thought too.

It’s a fact that a lot of people who spend big money on things aren’t necessarily clued in on what they’re buying. Not just cars.

I don’t know anything about ovens, but if I needed one and could afford a more expensive one, I’d probably buy one without knowing what makes a Neff better than a Beko. I’d just assume it’s better.

Pac1Man · 18-03-2019 10:17PM

colm_mcm wrote: »

It’s a fact that a lot of people who spend big money on things aren’t necessarily clued in on what they’re buying. Not just cars.

I don’t know anything about ovens, but if I needed one and could afford a more expensive one, I’d probably buy one without knowing what makes a Neff better than a Beko. I’d just assume it’s better.

I find it incredible that people who are about to potentially spend 20k+ on something don't educate themselves. I can understand that analogy with lower priced items but not cars.

Snobbery has a lot to do with it of course. The amount of brand new 318s/316s & A3 saloons driving around is crazy. I'm not sure what they go for but I'm guessing 30-40k?

That's a serious amount of money to spend on something so basic and limited. The A3 has a 1.0T option now too. No doubt the middle management types will be clambering for one of these. In white probably.

NIMAN · 18-03-2019 10:26PM

Murt10 wrote: »

Advertising executives in Head Office decide on what is a premium brand.

As I understand it for example most Audis, VW's, Seats and Skodas are virtually the same car under the skin, but they are each aimed at a different clientele, and priced accordingly.

They appeal to snob value.

They might have the same engines, but you'll find the spec, quality of interior, gadgets, tech etc much better on an audi than a seat.

You're not just paying the extra money for a badge.

colm_mcm · 18-03-2019 10:27PM

This isn’t a new thing, the original A3 had a 100PS 8 valve 1.6 as the standard engine. The point is that they’re not being bought by people who necessarily want a powerful car.

NIMAN · 18-03-2019 10:28PM

Would it be safe to say that the lower/medium brands are making better cars than they did years ago, and the top brands are making lesser cars than they did a few decades ago?

This would close the gap.

Tacklebox · 18-03-2019 10:28PM

Ironically sitting in a vintage Mercedes Benz with leather seats is still a nicer feeling than sitting in a new Mercedes...

That's for me anyhow, the old Mercs felt more solid and had that husky vroom about them.

Like sitting in a comfy tank, you can still feel like you're in the early 80's the rosewood dash, shiny trim inside.

Absolute luxury.

Idbatterim · 18-03-2019 10:36PM

Have owned several bm’s When I see a one or two series etc drive past I dispair. It looks like you care so much what others think, but you’re driving a **** box !

A new bmw 3 series starts at fifty k, for a four pot tractor engine designed to look compromised, you spend several more thousand on a good looking one. The yoke will be woryh probably 35k if not less in two years. That kind of depreciation on THAT kind of car is comedy!!!

Pac1Man · 18-03-2019 10:42PM

Tacklebox wrote: »

Ironically sitting in a vintage Mercedes Benz with leather seats is still a nicer feeling than sitting in a new Mercedes...

That's for me anyhow, the old Mercs felt more solid and had that husky vroom about them.

Like sitting in a comfy tank, you can still feel like you're in the early 80's the rosewood dash, shiny trim inside.

Absolute luxury.

Read like an M&S advert.

Tacklebox · 18-03-2019 10:56PM

Pac1Man wrote: »

Read like an M&S advert.

And you'll arrive at your destination in absolute comfort

Nonoperational · 18-03-2019 11:53PM

It's just as much of a herd mentality to scoff at people that like something and buy it just because it isn't what you think they should want. If everyone had the same values and liked the same thing we'd all be driving super Kias around the place with smug grins on our faces.

What makes a premium car/brand?

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