Key Points
- Yellow cars suffer the least depreciation, while white, black, and silver cars are ranked lower on the list.
- The overall average depreciation rate among used cars stood at 22.5%, with gold colour having the worst depreciation rate of 25.9% after 3 years.
- The depreciation rate also depends on the body style and vehicle segments. For example, brown sedans, green minivans, and beige trucks have the lowest depreciation rates in their respective segments.
- The research suggests yellow cars are a good choice if you are looking for a car will hold its value well.
- The research also provides some valuable insights into the factors can affect a car’s depreciation rate. If you are thinking about buying a new car, it is important to consider the color, body style, and vehicle segment when making your decision. These factors can have a significant impact on the resale value of your car in the future.
Details
It’s interesting to learn about the research on car colours and their impact on depreciation rates. According to the study, yellow-coloured cars surprisingly experience the least depreciation, with a 13.5% rate, followed by beige and orange at 17.8% and 18.4%, respectively.
On the other hand, more common colours like white, black, and silver had depreciation rates roughly in line with the market average, with white performing slightly better at 21.9% and silver and black suffering a depreciation rate of 23%.
Colours like silver and white have been among the most popular options for cars for a long time. However, more recent reports suggest two-tone finishes and colours like grey, violet, blues, and greens are gaining popularity among car buyers in 2021.
Vehicle Depreciation by Color – iSeeCars Study | ||||
Rank | Color | 3-Year % Depreciation | $ Difference from MSRP | Compared to Overall Avg. |
1 | Yellow | 13.5% | $6,588 | 0.6x |
2 | Beige | 17.8% | $8,411 | 0.8x |
3 | Orange | 18.4% | $7,023 | 0.8x |
4 | Green | 19.2% | $8,719 | 0.9x |
5 | Red | 20.6% | $8,538 | 0.9x |
6 | White | 21.9% | $9,695 | 1.0x |
7 | Blue | 22.0% | $9,216 | 1.0x |
8 | Gray | 22.5% | $9,425 | 1.0x |
Overall Average | 22.5% | $9,674 | – | |
9 | Purple | 22.7% | $8,840 | 1.0x |
10 | Silver | 23.2% | $9,218 | 1.0x |
11 | Black | 23.9% | $10,867 | 1.1x |
12 | Brown | 24.0% | $10,305 | 1.1x |
13 | Gold | 25.9% | $11,546 | 1.2x |
Study
The study also highlights the depreciation rate depends on the body style and vehicle segments. For example, brown sedans, green minivans, and beige trucks have the lowest depreciation rates in their respective segments.
It’s essential to consider the depreciation factor when choosing the colour of a car, especially if you plan to resell it in the future. However, personal preferences and tastes often play a significant role in deciding the car’s colour for many buyers. Keep in mind while car colour may affect depreciation, other factors like make, model, mileage, condition, and overall demand for the vehicle also play a crucial role in determining its resale value.
Conclusion
The research suggests the colour of a car can have a significant impact on its depreciation rate. Yellow cars suffer the least depreciation, while white, black, and silver cars are ranked lower on the list.
The depreciation rate also depends on the body style and vehicle segments. For example, brown sedans, green minivans, and beige trucks have the lowest depreciation rates in their respective segments.
If you are thinking about buying a new car, it is important to consider the color, body style, and vehicle segment when making your decision. These factors can have a significant impact on the resale value of your car in the future.
Here are some additional tips for buying a car will hold its value well:
- Choose a popular car model.
- Buy a car with low mileage.
- Keep your car in good condition.
- Have your car serviced regularly.