Privilege has nothing to do with it. It's a simple matter of market segment definition. It's rather silly to pretend that something like a base model A4 is a luxury vehicle when it contains barely any luxury features beyond the logo on the grill. By comparison a top trim Honda Accord lists for $35K but no one considers that a luxury car.

Personally I drive a cheap car. Average new car prices have gotten crazy high relative to median incomes, enabled by low interest long term financing. A lot of buyers are ending up overextended.