Luxury Car markets are tanking in Europe, how about over here?

There is something rather deliciously ironic happening in the luxury-car market. The people who can most easily afford a new Porsche, Bentley or Aston Martin are increasingly deciding that they would rather keep the one they already have.

A recent The Drive article, “Luxury Car Sales Are Cratering. Some Porsche Dealers Are Making It Worse,” paints a fairly grim picture. Bentley sold fewer than 150 cars in one summer month, Aston Martin’s revenue fell 21%, while Porsche suffered its worst year since 2009. Porsche sales in China alone fell 26%.

And Europe isn’t exactly providing a safe harbour. Volkswagen has just slashed its 2026 profit outlook, with around €6 billion of impairment linked to Porsche, while the wider European premium manufacturers are being squeezed by Chinese competition, weak Chinese demand and the rather expensive consequences of their great EV adventure. (Reuters)

But perhaps the most interesting part of the story is why wealthy customers are walking away.

Apparently, some Porsche dealers have been effectively saying: “Fancy a GT3 RS? Lovely. Now, about that Taycan nobody wants…” Customers are reportedly being encouraged to buy slow-moving models in order to secure allocations of desirable ones. The result? More unwanted cars entering the second-hand market, pushing prices down further.

It turns out rich people aren’t necessarily stupid.

Meanwhile, here in Southeast Asia, the story looks rather different. Used luxury cars still appear to be holding surprisingly firm. Malaysian listings, for example, continue to show substantial asking prices for BMW, Mercedes and Porsche models, although recent data also shows selective price reductions, particularly on cars such as the Porsche Macan.

And that distinction is important. Asking prices aren’t necessarily transaction prices. But there is clearly still a market for a three- or four-year-old luxury car at the right price.

Perhaps this is the beginning of a great automotive reversal.

Why spend RM800,000 on a new Porsche that looks remarkably similar to the one you already own, when you can spend considerably less on the previous model and still arrive at the country club looking suitably expensive?

The luxury-car manufacturers may have forgotten one fundamental rule of luxury.

Luxury isn’t simply expensive. It has to feel worth it.

And increasingly, buyers seem to be asking the rather awkward question:

“Exactly what am I getting for all that extra money?”