Prices for iconic brand name cars are dropping significantly, which could be a result of the expanding market for luxury cars, according to a new report.
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According to USA Today, three luxury car brands, in particular, have been affected: Aston Martin, Rolls-Royce and Lamborghini.
The average price of a used Aston Martin dropped 54 percent to $103,000 from its peak average price in 2018, reported USA Today, citing data from analytics firm Thinknum. Meanwhile, the average cost of a used Lamborghini reportedly dropped 56 percent to $207,000 and the average list price of a used Rolls-Royce declined to $198,000 — down 48 percent.
The car companies have been working to improve sales, with Aston Martin’s sales improving by 26 percent in 2018, Rolls-Royce’s by 22 percent and Lamborghini’s up by 51 percent, according to USA Today.
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However, those improved sales hurt older used models.
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“You’ve got more inventory, and you’ve got more choices. You’ve got to wonder if you’ve got changes in perceived value,” Josh Fruhlinger, Thinknum’s editor-in-chief, told USA Today.
It doesn’t help that the luxury carmakers are pushing their new models to have improved features, which makes used cars seem even less appealing, the outlet reported.
Another possible reason for the decline in the prices of older luxury cars could be Americans’ love of SUVs.
In the first eight months of 2018, the luxury industry sold an impressive 1.3 million new vehicles in the U.S., a September 2018 report from car-shopping website Edmunds stated. SUVs accounted for 62 percent of those luxury sales — an “all-time high,” the site said at the time.
“Luxury SUVs are a winning strategy all around right now. Car buyers are willing to consider an SUV in pretty much any form they can get them, and the premium price tags SUVs command make for nice profit engines for automakers,” Jeremy Acevedo, manager of industry analysis at Edmunds, said in an online statement last year. “However, the flood of SUVs in the market is also driving up prices of new vehicles overall, blurring the lines in the eyes of car shoppers of what ‘luxury’ really means.”
In response to the growing trend, Rolls-Royce, Aston Martin and Lamborghini have each introduced their own SUV models.
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Lamborghini’s SUV, the Urus, was released in December 2017. Rolls-Royce unveiled its SUV, the Cullinan, last May. Named for the diamond in Britain’s Crown Jewels, it carried a $325,000 price tag plus an estimated $5,000 gas-guzzler tax when it was released.
Aston Martin was one of the last luxury carmakers to join the SUV trend when it unveiled its DBX in November 2018.
The Associated Press contributed to this report.
