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Luxury Car Market Trends in 2025
Despite a robust overall market, some luxury car models are struggling to attract buyers, suggesting potential price cuts in the coming year. Experts Brian Moody of Kelley Blue Book and Zach Shefska, CEO of CarEdge, shared their insights on which vehicles are most likely to experience price drops.
According to Moody, the first two months of 2025 showed a surge in luxury car sales. “There have been more than 52,000 six-figure car sales in January and February this year alone,” he stated, pointing out the increase from 46,000 during the same period last year and 12,000 in 2020. However, not all models are performing equally well.
Luxury Vehicles Facing Price Drops
Jaguar F-Pace
Jaguar’s recent rebrand and commitment to going all-electric by 2026 may be impacting sales.
“Though they’re highly regarded by many car buyers, Jaguar is going through a transition, and is one of the few luxury models that might have price drops soon,” said Moody.
Shefska noted that the F-Pace’s 291-day supply indicates slow sales, and dealers may soon offer significant price cuts.
Porsche Taycan
The Porsche Taycan EV.
The Porsche Taycan, a high-end EV, is seeing depreciation in the used market, and new models may follow suit. With slower EV sales growth, particularly in the luxury segment, Shefska predicted high supply levels and waning consumer interest could lead to incentives on the Taycan.
Alfa Romeo Giulia
The Alfa Romeo Giulia sedan is another model facing potential price drops due to high inventory and low demand.
Shefska revealed that there is a 216-day supply of Giulias. This oversupply suggests dealerships will offer discounts to sell units.
Cadillac CT4
The Cadillac CT4, with a 243-day supply, is also struggling to find buyers, with its likely price decline due to the growing preference for SUVs over sedans.
“There’s a little bit of a trend here: Cadillac CT4, Porsche Taycan, and Alfa Romeo Giulia are all expensive luxury sedans, and consumers are opting for SUVs instead,” said the expert, adding that buyers can expect dealer incentives, including low-interest financing and discounts of around 10% off MSRP.
Maserati Grecale
Maserati’s Grecale SUV has found it difficult to attract buyers, primarily due to its high price point. Shefska pointed out the lack of interest in expensive Maseratis and the price increases for 2025. As a result, buyers are anticipated to find good deals through incentives.
Electric Lexus and Mercedes-Benz Models
While Lexus generally experiences strong demand, the electric versions of their vehicles may face price drops.
Moody stated that price reductions are expected on electric versions of Lexus and Mercedes-Benz models, especially those that have been lightly used. The decreasing demand for luxury EVs could bring about enticing lease deals and sizable discounts.
