White, silver, and black tend to be the most popular colors for car-buyers. But those colors are BORING! A new study from iSeeCars.com reveals that bold colors like orange and yellow actually depreciate less.
Car ColorAverage Depreciation
Over 5 Years
Beige, Brown, Gold 33.3%
"While a popular car color like black or silver may get more interest and sell faster, our analysis indicates it may not get as high a value as a car, say, in yellow," Phong Ly, CEO and co-founder of iSeeCars.com said. "Scarcity may account for the difference — only 1.1% of all cars are yellow and orange; if teal and green are included, the percentage still goes up to just 5%. The dearth of supply of such colors may drive prices up."
iSeeCars.com analyzed over 20 million used cars of all different colors from model year 1981 to 2010. The depreciation was calculated for each car and color based on its original MSRP (adjusted for inflation), its used car listing price, and the age of the vehicle.
The lower depreciation of less common colors is seen across all car types including convertibles, coupes, sedans, SUVs, pickup trucks and wagons. For example, amongst SUVs, yellow color ones on average show the lowest depreciation. Amongst convertibles, teal adorned ones depreciate the least.
As for more common colors like black, silver, or gray, the depreciation is closer to the overall average depreciation for a car of about 34% over 5 years.
iSeeCars.com analyzed over 20 million used cars for sale last year and studied vehicles of all colors from 1981 to 2010. The depreciation for each vehicle was calculated based on the price of the used car, the original MSRP (adjusted for inflation), and age of the vehicle. Cars of the same color were then aggregated to determine the average depreciation over 5 years for each color. Inflation data from the Bureau of Labor Statistics were used in adjusting MSRP.
So if you have the option to stand out from the crowd and choose a bright color, it might pay off (a little bit) when it comes time to sell your ride. While I tend to have a conservative color choice and lean towards white or blue, I would take a C7 in yellow.
Would you buy an orange or yellow car?
(image credit- 650s: Telegraph.uk, Z06: Wikipedia)