You might be surprised by some of these rankings.
You’ve probably spent some time in the auto sales industry. The term resale Red is often used by dealership sales staff. It’s because everyone wants a red vehicle and will pay more for it. Right?
According to a report by iSeeCars, it is not necessarily. A deep dive into vehicle sales between 2017 and 2020 revealed 6 million transactions that were examined with an eye on colors and values. The results showed which shades have the highest and lowest resale value. It turns out that the resale value cliche may not be all it seems.
The study found that yellow cars hold more value than any other color in the palette. Yellow cars lost only 20.4 percent in value over the three-year average depreciation of 37.6 per cent. But, perhaps the most surprising is beige at 22.8 per cent. The results are almost twice as good than the average. But where does red fit in the mix? Although it is technically at 36.1 percent, it is sixth on the list. The most popular colors for cars are gray, white, black and red. Gray is just above the average, while black/white is just below it.
What are the colors that have the highest depreciation, and what is the average? The bottom spot is gold with an average depreciation rate of 45.6 percent. This is definitely below the curve, but not too much. At 42.1 percent, everyone’s favorite shade of brown is found. Purple comes in third at 41.2 percent.
The trends are largely consistent with the overall results of the study, which also examines vehicle colors by segment. Pickup trucks are notable for their differences in color. White and beige show the highest resale value, while yellow is not even on the list. Minivans are best in blue, while resale Red is the best. It is the most popular color for convertibles, by a large margin.
It is worth noting that these values are likely to be affected by the vehicle segment. Convertibles, for example, have higher resale value regardless of their color and are more likely to be adorned in interesting colors. This latest study is similar to other deep dives into car color that we’ve done in recent years. It further confirms the fact that while neutral colors can be safe, vibrant colors attract more attention and money.