Buzz
A recent study shows that color plays a significant role in a car’s resale value, with depreciation varying by up to 25% between different colors. Surprisingly, uncommon shades like yellow and orange fare better overall compared to more conventional colors like black or grey. But does a car’s color influence your purchasing choice? It’s not as straightforward—this depreciation range is influenced by rarity, the vehicle model, and changing consumer preferences.
Conventional, uninspiring colors neither benefit nor detract from resale value
An iseecars.com study shows that the depreciation of cars over a three-year period, based solely on their color, ranges from 20.4% to 45.6%.
Unexpectedly, colors like white, black, and silver fall within the middle of the depreciation range, while shades like yellow, beige (yes, beige), and orange tend to hold the highest value. Why does this happen? As Karl Brauer, Executive Analyst at iSeeCars, explains:
It’s almost a self-fulfilling cycle: many consumers choose these mainstream colors not because they have a preference for them, but because they assume they’re in demand. This leads to white, black, and silver appearing popular, but our findings show that rarer colors tend to retain their value better than these commonly favored ones.
The logic is that people tend to ‘play it safe’ with dull colors when buying a new car, especially if they plan to resell it. But with used cars, which are more affordable, buyers often choose colors they truly like, particularly if they have no intention of selling it later.
The limited availability of rare colors doesn't fully account for the disparity, as results can vary significantly depending on the car's make and model. For instance, while orange isn't common, it is popular on sportier SUVs or vibrant coupes. However, it depreciates by an additional 10% when applied to a sedan. (And just because a color is rare doesn’t guarantee higher value—brown and gold are both scarce and unpopular).
Some colors are more sought after in car categories that traditionally experience low depreciation, like coupes, which can skew the data and create the illusion that a color is more in demand than it actually is, on average. Tyson Jominy, Vice President of Data and Analytics at J.D. Power, explains to Autoweek:
The problem lies in relying on averages for a factor like color, which is not evenly distributed across car types and segments. We need to evaluate a specific vehicle to understand how color impacts depreciation. For example, how does a yellow F-150 compare to a black F-150, or a silver 911 vs a blue 911? Here, color may only slightly influence the car’s value, potentially adding or subtracting a few hundred dollars.
How significant is the color choice when purchasing a car?
You may be able to increase your car's resale value by choosing a color that’s currently in demand for that specific model. For instance, you might opt for a beige truck, assuming it will stay a popular color, since, as the New York Times notes, many truck owners are small business owners who need a neutral shade for signage. However, chasing trendy colors like yellow might not be as fruitful, as tastes can shift quickly by the time you're ready to sell (think of how popular teal was in the '90s).
"The truth is, pick any color you like without concern," says Jominy. "Color should be considered alongside other factors like location, car upkeep, smoking, pets, young children, or long daily drives. The impact on trade-in value is minimal, and if a dealer doesn't offer enough for your trade due to a bold color choice, simply list your car on a national used car platform and sell it privately to another buyer who appreciates it."
