A recent study shows that the color of your car has an impact on its resale value.
Some car shoppers tend to stick with neutral shades like white or black when purchasing a car, believing it will be easier to sell in the future. Part of that is true, but a recent study conducted by iSeeCars.com has some surprising results. When it comes to a car’s resale value, the brighter and more unusual shades like orange and yellow actually hold their value better. And before you think that’s because orange and yellow are typically reserved for luxury and exotic vehicles, the two shades had the least depreciation across virtually all body styles and market segments.
The average depreciation for a car over three years, according to the study, is 29.8 percent, while yellow cars depreciate 22 percent over the same period. Orange cars depreciate the least at 21.6 percent. Coming in third on the list is green at 24.5 percent and rounding out the top five is brown in fourth at 28.5 percent and red in fifth at 29.1 percent.
Neutral colors like grey (29.5 percent), white (29.5 percent), blue (29.9 percent) and black (30.2 percent) are close to the average of 29.8 percent while silver (30.6 percent), beige (31.2 percent) and gold (33.5 percent) depreciate the most.
It is worth noting that one of the contributing factors to the rarer color’s higher resale values is scarcity, making up just 1.5 percent of all vehicles.
“Cars in orange, yellow, and to a lesser extent, green, are primarily sports cars and muscle cars,” said Phong Ly, CEO of iSeeCars.com. “Not only do these colors appeal to many of the buyers in these segments, but these cars are driven less, most likely because they are not used as daily drivers. For example, the average mileage of three-year- old orange sports cars is just 27,210 miles, and 26,822 miles for muscle cars, compared to 36,324 miles on average for all cars.”