Yellow is the Resilient Choice for Car Resale Value
The color of a vehicle has a more significant impact on its resale value in the used-car sales market than one might think. Research conducted by iSeeCars highlights the variations in depreciation rates based on the color of the car. According to their findings, yellow cars suffer the least depreciation, experiencing a rate of only 13.5 percent. On the other end of the spectrum, gold cars face the most substantial depreciation at 25.9 percent. This data suggests that opting for a yellow car may be a smart choice for those who are conscious of preserving the value of their investment.
However, the story changes for common colors like white, silver, and black. These colors tend to depreciate around the market average, with silver and black ranking even lower in value retention due to their widespread prevalence. The popularity of white and silver cars has historically dominated the automotive market. In 2009, silver was considered the most popular car color globally, but by 2011, white took over and remained at the top until 2014. Even in 2021, white and black continued to be the most popular colors for new cars worldwide, accounting for 35 percent and 18 percent of all new vehicles, respectively.
Interestingly, the trends in color preferences are changing, with personalized and unique colors gaining momentum. PPG’s Automotive Color Popularity Report for 2021 indicates a resurgence in two-tone finishes and a preference for colors like grays, blues, greens, and violets. Consumers are increasingly seeking individuality in their vehicle choices, moving away from the traditionally popular options. This shift in preferences suggests that buyers are now more likely to embrace colors that resonate with their personalities and lifestyles, rather than sticking with common choices.
To arrive at their conclusions, iSeeCars analyzed an extensive dataset of over 1.6 million used cars from the 2020 model year. The data was meticulously adjusted for inflation and then aggregated by color and body style to determine the depreciation rates for different colors. This comprehensive analysis allowed iSeeCars to identify variations in depreciation rates based on the type of vehicle and its color.
Notably, depreciation rates differ significantly across various vehicle segments. For instance, beige trucks exhibit the lowest depreciation rate, followed by orange and green. For sedans, brown models showcase the least depreciation, while green minivans similarly demonstrate a lower rate of value loss. This underscores the importance of considering multiple factors, including color, when making a vehicle purchase.
While color is undoubtedly a factor influencing a car’s resale value, it is crucial for buyers to remember that it is just one of several factors at play. Factors like the car’s overall condition, maintenance history, mileage, and demand in the market also contribute to its value retention. Therefore, while color choice can make a difference, it is essential for buyers to prioritize their personal preferences and needs when selecting a car. Ultimately, a vehicle that aligns with the buyer’s taste and usage requirements will provide the most satisfaction and value in the long run.