4 SUVs That Will Have Massive Price Drops in Early 2025
Written by
Jennifer Taylor
Edited by
Zuri Anderson
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SUVs aren’t cheap. However, if you’re open to a variety of different models, you might be able to score a deal in early 2025.
A price drop is likely in store for certain SUVs, meaning you could get a brand new vehicle at a discount. In fact, this may already be in the works for certain models.
Incentives on small SUVs are already higher than average incentives, said Brian Moody, executive editor at Autotrader.
“The average new car incentive is 7.2%. However, on small SUVs, that number is 9.4%,” he noted, adding that a crowded marketplace could be to blame.
“That is one of the top selling vehicles segments each year — and automakers keep adding more models. There are 25 different models [that] are fighting for sales.”
In October 2024, the average transaction price for a new compact SUV was $36,739, according to Kelley Blue Book. This is nearly 30% less than the industry average.
“Part of this is because these are smaller, less expensive vehicles to begin with, but it also shows that many buyers are getting a small SUV for much less than the average price of all new vehicles,” Moody explained.
If you plan on buying a new SUV in early 2025, this could be good news for your wallet. Here’s a look at four SUV models Lauren Fix, founder of Car Coach Reports, believes will have serious price drops early next year.
Ford Mustang Mach-E
- Baseline price: $39,995
“The electric SUV with the Mustang namesake has not sold at levels Ford had hoped,” Fix said. “With the electric vehicle mandate going away, this SUV will have a price drop to see off the bulk of its inventory.”
If you’re looking to get a deal on a new electric SUV before 2025, you might want to consider this one.
“Ford has already cut prices on this model earlier this year and wants to make it even more affordable,” she added.
Volvo XC90
- Baseline price: $57,400
A luxury SUV, Fix said the Volvo XC90, as it had a huge price drop this month.
“This is a three-row SUV that is a reliable and safe option, if you are seeking a luxury European car,” she noted.
Jeep Grand Cherokee 4xe
- Baseline price: $60,490
“[The] Jeep Grand Cherokee plug-in will have lower than sticker prices, due [to a] lack of sales,” Fix explained. “This vehicle is a smart lease purchase, if you require a plug-in SUV.”
President-elect Donald Trump’s transition team plans to eliminate the $7,500 consumer tax credit for electric vehicle purchases, according to Reuters. If this happens, Fix expects it to impact the price of this EV.
“[If] the tax credit goes away, prices should drop even further,” she said.
Ford Escape
- Baseline price: $28,150
Already one of the more affordable SUVs, this one could get even cheaper.
“The Ford Escape has been facing strong competition in the compact SUV market, as there are many option[s],” Fix said. “An incentive to purchase will help offer better pricing.”
Ultimately, only time will tell which SUVs will decrease in price in 2025, but these are four to keep your eye on. This can be a great way to start the new year with a brand new car.
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