A passenger car with a 3-box configuration of A, B, and C pillars along with principal space allocated separately in compartments for the passenger, engine, and cargo can be defined as a sedan. The passenger compartment contains adequate space with two rows of seats. The boot space is typically in the rear, except for a few rear-engine models such as the Chevrolet Corvair and Volkswagen Type 3. Battery electric liftbacks have no engine compartment, but front and rear cargo compartments.

Luxury vehicle is the marketing term used for a vehicle that provides luxury with desirable or pleasant features that are not a strict necessity, for a higher price. Even sedans have luxury models that are released. It simply means a vehicle with better performance, higher quality equipment, comfort, more precise construction, technologically innovative model, higher design or features that highlight a brand, image, prestige or status.

The sedan luxury segment includes cars like the Audi A7, Acura RLX, Volvo S90, Audi A6, BMW 5 Series, Genesis G80, Jaguar XF, Cadillac CTS, Mercedes-Benz E-Class, Lexus GS, Maserati Ghibli, Infiniti Q70, and Lincoln MKZ.

Usually, Maserati models are categorized as ultra-luxury cars. However, the new Maserati Ghibli III is priced to compete with high-end luxury sedans such as the BMW 550i, Audi S6/S7 as well as Mercedes-Benz E550/CLS550.

Although luxury cars have similar design, features, and dimensions to other cars, luxury sedans are positioned and engineered as executive vehicles with a whole improved performance as well as technological amenities.

What set the luxury sedans apart from their contemporaries has better engine such as a V8 as against the usual economical engines like inline 4 or V6. Also, luxury sedans are usually limited editions, which means that the number of cars manufactured is way lesser than that of the usual models.

Due to steep depreciation, most luxury sedans are manufactured by marques that specialize in expensive vehicles. For example, in the country, the companies that manufacture luxury sedans are usually Mercedes or BMW. Although other brands like Infiniti and Citroën tried their hand in this segment, they were grossly unsuccessful. Luxury sedans are not the highest selling models, they rake in profits due to the lucrative options in technology.

Limousine is another large sedan company with separate compartments for driver and passengers. The passenger compartment is so long that its 2-bench seats can be placed facing each other. Usually, the vehicles used for Limousine purposes are Rolls-Royce, Mercedes-Benz, Lincoln Town Car, and Cadillac. Some Limousines can seat up to 20 people by stretching the passenger compartment. It can be customized as per the requirement of the owner. Businesses use chauffeur-driven Limousines to provide a world-class experience for customers.