So far, 2025 is proving to be the year of the luxury car. According to Brian Moody, executive editor at Kelley Blue Book, more car buyers are shelling out for pricey models.
“There have been more than 52,000 six-figure car sales in January and February this year alone,” he said. “That’s up from 46,000 over the same time last year, and from 12,000 in 2020.”
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But while the overall luxury car market remains strong, some models are struggling to leave the lot — suggesting there are ample opportunities for price cuts in the year ahead.
Industry experts Moody and Zach Shefska, CEO of CarEdge, share their insights on which luxury vehicles are most likely to see price drops this year.
British car manufacturer Jaguar courted controversy earlier this year with a rebrand that not everyone loved, and a bold promise to be 100% electric by 2026. This, said Moody, may be costing them.
“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,” he said.
Shefska added the Jaguar F-Pace is already showing signs of bearing the brunt of the company’s change in direction. According to Car Edge data, the F-Pace has a 291-day supply, making it the slowest-selling car in the country.
“That means it would take 291 days to sell all the available Jaguar F-Paces based on current sales rates,” Shefska explained. “We think that means there will be some big price cuts on that vehicle.”
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The Porsche Taycan, a high-end EV, has seen depreciation on the used market, and its new models may follow suit, said Shefska.
“EV sales have been slowing down, particularly in the luxury segment. For a vehicle that costs, on average, $143,000, the market is just not that big,” he noted, adding that high supply levels and waning consumer interest in ultra-luxury EVs could result in significant incentives on the Taycan.
Alfa Romeo’s Giulia is another sedan facing price drops due to oversupply and lack of demand.
“Only 212 Giulias have sold in the last 45 days, and there’s a 216-day supply on dealer lots,” Shefska revealed. This high inventory level suggests that dealerships will be offering steep discounts and financing incentives to move units.
With a 243-day supply, the Cadillac CT4 is another luxury sedan struggling to find buyers. Shefska attributes its likely price decline to the growing preference for SUVs over sedans.
