Find a newer vehicle you like? Need to sell your old car? Of course, you want your old car to sell or trade at a good price. However, a car loses some of its value each year through general aging and every day wear and tear. The two biggest factors that affect a car’s resale value are your vehicle’s age and mileage. Plus a laundry list of other factors, some of which you have no control over.
Resale value is something to take note of when you shop for a new car—you can gain a little peace of mind knowing you’ll get the best value for your car when it’s time to move on. It could even be a tiebreaker if you’re torn between two models.
Color your world
According to a study by iSeeCars.com (an online automotive research website), the color of your car can have an impact on how much money you can sell it for. This is due to a variety of reasons, including changing tastes in color, where you live, and whether manufacturers have retired your vehicle’s paint color.
CAR COLORS THAT HELP RESALE VALUE
White, black, and silver cars. Those three colors have been top sellers for an eternity. Conventional wisdom for those worried about depreciation accepted that a neutral color was best for resale value—appealing to more potential buyers. When it came time to sell, a wild color such as bright green, orange or yellow would significantly reduce the number of buyers.
But according to the study, the opposite is true. iSeeCars identified that bright hues bring back the most bucks over the first three years.
- Yellow cars hold value best, depreciating only 27%
- Orange cars were next, only losing 30.6%
- Green, white and red cars also depreciate slower than average
[For reference, the study indicates the average car depreciates 33.1% over three years.]
One reason for this is scarcity. “Yellow cars are relatively less common, which could drive up demand and help maintain their value,” said Phong Ly, CEO of iSeeCars.com.
Orange and yellow cars are primarily sports cars that are not used daily. Therefore, their mileage tends to be lower, increasing their resale value.
CAR COLORS THAT HURT RESALE VALUE
- Gold cars depreciate more than any other color at 37.1%
- Purple cars were next, depreciating 36.7% in value
- Beige colored cars lost 36.6%
According to the study, gold cars are the biggest loser (depreciating by more than one-third in the first three years)—possibly because most gold vehicles are sedans —and there’s a surplus of those, affecting prices.
According to Time Inc.’s automotive culture site, The Drive, the most common colors like blue, black, and silver tend to depreciate at the near-average rate, while the big duds are colors that have been out of style for a while now. Also, The Drive speculates, “When someone buys a beige Camry, what made them decide on beige? Maybe it’s a desire to stay low key. Perhaps the driver doesn’t want it to show dirt too much. One might assume that the car will hold its value better if it has a boring color and could appeal to more potential buyers.”
Beige was also the slowest seller on the resale market, taking an average of 46.6 days to find a buyer (10 days slower than usual).
Here are some interesting car color facts.
- According to research conducted by paint supplier PPG Industries, white is currently the most popular car color in the U.S. (35%), followed by black (17%), silver (12%), and gray (12%).
- Metallic colors are more popular among men, while women show a preference for solid, single-color non-metallic-looking gloss finishes and pearlescent/colored sparkle effects.
- James Bond’s Aston Martin. Herbie the Love Bug. The Dukes of Hazard’s General Lee. Knight Rider’s KITT. Here’s a list of some of the colorful cars made popular on television and in movies.
The next hot color? Click here to see why a deep blue hue is predicted to be the top color choice for cars model year 2022.
Resources: AutoNation, Money Talks News, US News, Time, Inc., Motor1.com, LemonLawNow.com.