With Kelley Blue Book reporting that the average buyer now pays $47,401 for a new car, no one could blame you for feeling like every vehicle on the market is overpriced. However, some cars don’t offer enough value to justify their MSRPs, even when accounting for inflation — or even if they’re really cool.
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No matter your budget, every segment of automobiles has a few models that don’t live up to their shocking sticker prices. Some fall short on features, materials, power or tech. Others lose out to close competitors that cost less, have better car ratings and reviews, or have higher performance overall.
Either way, it’s more important than ever in 2025 to make sure you don’t drive home from the dealership with a car that costs more than it’s worth. Here’s a look at some of the new models that experts think are overpriced.
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For Michael Dominguez, who holds a master mechanic certification and a degree in automotive technology from the University of Michigan, one luxury car stands out as falling short of its $60,500 starting price.
“One model that immediately comes to mind is the Audi Q7,” said Dominguez, founder of Car Fixer Guide. “While it boasts luxury, the high cost of maintenance and minimal improvements from the previous year make it difficult to justify the elevated MSRP. It’s outperformed by competitors like the BMW X5 and Lexus RX 350, both offering similar luxury amenities at a better value.”
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The 2024 Cadillac Escalade starts at $81,895 but the new 2025 model can range from $87,595 to $116,395 without a major refresh. That car price is enough to scratch it off Dominguez’s list with our without Consumer Report’s analysis.
“Though it comes with a lot of bells and whistles, it doesn’t necessarily offer more than the 2023 Chevy Tahoe, a significantly less expensive SUV with a similar engine and features,” he said, in reference to the Tahoe’s $54,200 starting price. “For what you’re paying, you’re essentially splurging on the Cadillac name without receiving substantive improvements in performance or technology.”
Liam Lucas, automotive expert and founder of Off Road Genius, doesn’t dislike the Mercedes-Benz C-Class — just its price tag. Even though it falls close to the price when buying a new car on average, the details like tires, maintenance and repairs put it past entry-level pricing.
“While it’s a luxury vehicle with high-end features, its price has seen a significant increase, outpacing its improvements,” he said. “The base model starts at over $40,000. With added features, the price can easily reach $60,000, which is quite steep considering its competitors like the Audi A4 or BMW 3 Series offer similar or better features for a lower or comparable price.”
MSRP: $83,600 and $83,700 to $182,325 for a 2025 model
Lucas also fails to see the value in the coming year’s Range Rover Sport, which starts at $83,700 and climbs to more than $180,000. That’s not your average car deal.
“While it’s a luxury SUV with off-road capabilities, competitors like the Jeep Grand Cherokee offer similar off-road prowess and luxury for a fraction of the cost,” he said. The Grand Cherokee’s high-end Summit Reserve package starts at $71,535.
Robert Luterzo, automotive engineer and editor at Automotive Widget, calls the Bronco Raptor “one of the most over-priced 4×4 vehicles out in the market this year.”
“Its focus on off-road performance could result in compromises when it comes to everyday practicality and comfort,” Luterzo said. “The aggressive suspension setup and off-road tires might lead to a less comfortable on-road driving experience. Also, the emphasis on off-road features might mean that specific convenience and luxury amenities found in other SUVs are either absent or offered as expensive optional packages. For buyers who plan to use the vehicle primarily for daily commuting or family transportation, the sacrifices in comfort and practicality might outweigh the benefits.”
According to Talha Atta, mechanical engineer and editor at AutoGlobes, “The Rivian R1T is today’s market’s most expensive EV all-wheel drive.”
He thinks they simply don’t make enough of them to get the $71,700 starting price down to where it should be.
“As an electric pickup, the Rivian R1 caters to a relatively niche market, at least in its early stages,” Atta said. “This limited demand can result in higher production costs per unit, which can be passed on to the consumer through a higher price tag.”
Fifteen-year auto industry veteran Nick Robinson, co-founder of Pick and Pull Sell Car, a marketplace for used car parts, does not believe the specs of the BMW iX can justify its price tag, which starts in the high $80,000s. He thinks rivals like the Tesla Model X, Audi e-tron and Mercedes-Benz EQC offer much more bang for the buck.
“The iX has a controversial design, a mediocre range of 300 miles and lackluster performance,” Robinson said. “That’s kind of average when compared to other BMW models. Also, it does not justify its premium price tag or its luxury brand name and is not worth buying when there are better and cheaper alternatives on the market.”
One of the biggest names in minivans recently went all-in on green technology — and it might have sacrificed value during the conversion.
“The Toyota Sienna is overpriced,” said Melanie Musson, automotive industry expert at AutoInsurance.org. “There aren’t many minivan manufacturers, and the Sienna has been one of the most reliable options for years.”
But in 2020, Toyota switched the entire Sienna lineup — which starts at $36,885 — to consist exclusively of hybrid models.
“Not only does this change make them more expensive, but it makes them less suitable for the needs of many minivan drivers,” Musson said. “The small engine may help conserve gas when the van is empty, but if it’s loaded for kids’ sports or a family vacation, drivers are going to notice the extreme lack of power from the four cylinders.”
Andrew Lisa contributed to the reporting for this article.
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This article originally appeared on GOBankingRates.com: 8 Overpriced New Cars To Avoid Buying
Alisha Hunter is a news writer for Credence Advisors-News. She's been writing for over a decade, and she has taught herself all the skills she needs to be successful in this role.
Alisha has written about everything from technology to fashion; she's even written an advice column for brides-to-be!
Alisha loves reading books and watching movies - she's currently working on a book club with her friends where they read one book each month together!
