The numbers tell a remarkable story about where American automotive spending is heading. According to research from Boston Consulting Group and duPont Registry, the US luxury and exotic car market is projected to expand from $110 billion today to between $180 and $215 billion by 2035. That represents a compound annual growth rate of 5 to 7 percent, driven by an expanding pool of affluent buyers and shifting attitudes about what constitutes luxury ownership.
The growth will not be evenly distributed across price bands. Vehicles priced between $100,000 and $170,000 are forecast to see the strongest expansion, with annual sales rising 6 to 8 percent. This segment currently accounts for the bulk of the market and will continue to dominate as buyers gravitate toward entry level exotics and high specification versions of mainstream luxury brands. Meanwhile, ultra luxury and hyper luxury vehicles priced above $170,000 are expected to grow more slowly, suggesting the democratization of six figure motoring continues apace.
Perhaps the most significant finding concerns the secondary market. Sales of used luxury and exotic cars are projected to grow 1.5 times faster than new vehicle sales over the next decade, rising 5 to 8 percent annually compared to 5 to 6 percent for new models. Rising production costs, tariff impacts, and an ever expanding pool of nearly new inventory are pushing more buyers toward certified preowned and younger used examples. For manufacturers accustomed to prioritizing new car sales, this represents a fundamental shift in how customers access the luxury segment.
The research also reveals changing motivations behind luxury purchases. One in three buyers across all age groups cited emotional factors, such as connection to the brand or design, as their primary reason for choosing a vehicle. However, generational differences emerge beyond emotion. Buyers aged 18 to 60 were more likely to view a luxury car as a reward or investment opportunity, while those 60 and above cited cutting edge technology and owning the latest model as key motivations.
Decision making timelines have compressed dramatically. Although most buyers spend over three months researching, one third complete a purchase within a week of deciding on a vehicle, with another third buying within two to four weeks. That rapid conversion suggests dealers and private sellers must be prepared to close transactions quickly once a buyer commits mentally to a purchase.
Digital channels are reshaping how transactions occur. While most sales still happen through dealerships, three quarters of respondents said they would consider buying their next vehicle entirely online. Millennials and Gen Z show even stronger preference for digital platforms and private sales, both of which predominantly occur online. The traditional dealership experience remains relevant but no longer commands the monopoly it once enjoyed.
Nearly 95 percent of respondents said experiences are a valuable part of their brand satisfaction, though not all events carry equal weight. Track days and factory tours rank highest, but lifestyle events like wine tastings and fashion shows also generate engagement. For luxury brands, the implication is clear: selling the vehicle represents only the beginning of the customer relationship.
The research captures an industry at an inflection point. Luxury automotive used to mean purchasing the newest model from an authorized dealer and enjoying exclusive ownership. Now it encompasses buying a three year old exotic online, treating it as an appreciating asset, and expecting the manufacturer to provide curated lifestyle experiences beyond the car itself. The market is growing, but the rules of engagement have fundamentally changed.
About 80 percent of buyers browse online for luxury vehicles weekly or even daily, even when they have no immediate intention to purchase. That constant shopping behavior suggests the luxury automotive world has become entertainment as much as commerce. Doubling the market size by 2035 will require brands to understand this new reality and adjust accordingly.
