If you’re in the luxury car market, there’s some good news on the horizon. These cars may be budget-friendly later this spring. These cars themselves aren’t cheap, but in themselves there are some economic signs that point to a reduction in prices for many of the most popular high-end vehicles.
Check out: Four SUVs with significant price drops in early 2025
Next discover: 8 common mistakes Retirement commits social security checks
“Due to the state of the used EV market, consumer sentiment, and driver changes across other industries, these luxury cars will see some of the biggest declines in value by spring 2025,” explained Joe Giranda, Director of Sales and Marketing at CFR Classic.
These are five luxury cars that are likely to have a significant drop in prices this spring.
According to Giranda, the Mercedes-Benz S-Class will struggle to maintain its value as it faces increasing competition with rivals like the BMW I7 and Lucid Air.
“Current generation of aging techniques could further promote depreciation as these models match or exceed their luxurious appeal,” Giranda said.
Additionally, Gilanda said S-Class hybrid or gas-powered trims face additional competition if the price of used EVs drops dramatically, primarily premium-used EVs become more accessible.
For you: 2 reasons new car prices crash in 2025
“Teican has already depreciated significantly and its value could be further reduced,” Gilanda said. “The new report states that the resale value has crashed by 26.5% over the past year, sitting at around $73,976.”
Giranda’s expert opinion is that this is because EV battery technology has advanced too quickly, and there are a wealth of new electric models that are flooding the market.
“For those looking for range and cost-effectiveness, the new model could replace the old Teikan and potentially put pressure on dealers to offer discounts to move inventory,” Giranda added.
Giranda pointed out that the price of the used Tesla Model S fell 13.6% in 2024. The reason for this is due to the aging design of the vehicle and the continued price reductions offered by Tesla, the hard competition.
“The Model S highlights how oversupply in the luxury EV space, stiffer competition and evolving buyer preferences reduce its appeal,” Gilanda said. “Aggressive marketing of Tesla’s cheaper, more advanced models will make the situation worse.”
According to Giranda, the used hybrid trim has already been depreciated, indicating how the luxury buyers have moved to more electric alternatives.
