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How Vehicle Color Affects Depreciation

Rainbow Cars

According to a recent study from https://www.iseecars.com/ on 1.6 million vehicles that are three-years-old, the car’s paint color has a significant effect on how long it takes to sell and the vehicle’s depreciation. It may come as a big surprise that orange and yellow are the top 2 vehicle colors that depreciate the least after the three years are up. How is it that these vibrant colors, often seen on sport or exotic cars, depreciate the least? After all, they only make up 1.5 percent of the market. Are we missing something, despite their flashy colors?

Simply put, the reason why these two colors are the ‘least depreciated’ is that they are not a color we’d normally see for the daily drivers. Orange and Yellow cars are for those monthly day trips down the Pacific Coast Highway or a day in Beverly Hills. You’d never see a Yellow Bugatti at a grocery store parking lot. If you do, then the owner is clearly loaded and may have a few more like that back at the mansion.

That said, the top 5 colors making the lowest deprecation rates are listed below in no particular order:

  • Orange
  • Yellow
  • Green
  • Brown
  • Red

As far as the colors that are the most common paint choices and with average depreciation rates, you can probably imagine what made this list. They are:

  • Gray
  • Blue
  • Black
  • White

Beige and silver used to be the most in-demand colors back in the 90s and 00s, so they have an even higher depreciation rate than the ones listed above. However, the color that has the worst depreciation rate (just shy of 34%) is also the third-fastest-selling color: gold. Nevertheless, beige vehicles take the longest to sell and are on the market close to two months before they sell.

Vehicle colors are just part of what contributes to the depreciation. It’s only standard that the value of cars lessens over time. Whether you have a yellow Lamborghini or a beige Hyundai, take care of your vehicle, and you’ll be able to have a better value for your car. Make sure you take it to get its regularly scheduled maintenance and don’t neglect any repairs. If you are a dealership, be meticulous in your reconditioning operations, paying attention to paint correction and matching, regardless of the color. Brighter colors may have the lowest depreciation rate, but a well-maintained car will always have more value than a car that is not.