A new study by U.S. automotive research firm iSeeCars shows that vehicles painted yellow and other bright colours depreciate less quickly than the average.
Boston’s iSeeCars said they looked at more than 2.1 million used car transactions between September 2016 and August 2017 to find the most popular colours, then calculated depreciation by comparing the asking price against each car’s average MSRP.
What they found was that while the average car depreciated 33.1 percent in the first three years, yellow cars lost just 27 percent of their value in that time, followed by orange and green at 30.6 and 30.9 percent, respectively.
Meanwhile, cars done in conservative shades like gray, silver, and beige and gold depreciate more quickly than average, at 33.5, 34, 36.6, and 37.1 percent, respectively.
Phong Ly, iSeeCars’ CEO, said part of the reason for yellow’s depreciation dominance could be its relative rarity, with orange, yellow, and green combining to make up just 1.2 percent of all the used cars whose sales the company analyzed.
Meanwhile, white, black, and gray are the most common colours, which makes it easier for used vehicle buyers to shop around for the best deal.
iSeeCars also looked at the average number of days cars of each colour stayed on the used vehicle market. Here, they found that yellow and orange cars both took longer to sell than the average of 36.5 days, but beige vehicles stay on the market for 46.6 days, indicating a lack of demand for used cars in that colour that correlates to their poor resale value performance.
Phong said the latest iSeeCars data suggests new car buyers concerned with resale value should consider buying a car that comes in yellow, orange, or green, while used car shoppers would be wise to look for gold, purple, or beige in order to take advantage of as much depreciation as possible.