A Yellow Car Could Keep Money in Your Pocket
We tend to pick a car color based on personal reasons, like availability or preferences. However, there’s another reason to reconsider your favorite hue on a new set of wheels. The latest data suggests that a car’s color could cost you as much as $5,000 in value over three years. Fret not; if you want that Porsche or Jeep in yellow, you’re sitting pretty.
Yellow cars top the list of colors with the best value retention
When it comes to colors that preserve value, yellow is in high demand. In fact, yellow cars can retain 4.3% more of their original MSRP than the next hue, beige.
| Car color | Average 3-year depreciation | Average difference from MSRP |
|---|---|---|
| Yellow | 13.5% | $6,588 |
| Beige | 17.8% | $8,411 |
| Orange | 18.4% | $7,023 |
| Green | 19.2% | $8,719 |
| Red | 20.6% | $8,538 |
| Overall average | 22.5% | $9,674 |
According to the latest color and resale value study from iSeeCars, owners with yellow cars will find an average value loss of around $6,588 in the first three years. Of course, that figure will depend on the make, model, year, and condition. While that seems like a lot of money, depreciation is largely unavoidable.
For instance, the overall average depreciation rate for vehicles in the first five years of ownership is a staggering $17,221 across types and models. What’s more, the popular nameplates with the best value retention still ditch some of their original stickers. The Porsche 911, the top of the counter-depreciation pyramid, still loses 9.3% of its original value in the first half-decade.
Consequently, picking a car with a lower-than-average depreciation rate and a color with better-than-average value retention could save you money. Yellow Porsche 911, anyone?
While yellow retains value, gold can cost you your hard-earned money
Yellow, beige, and orange top the list of value-retaining colors. However, several colors have higher-than-average three-year depreciation rates. Gold, for instance, has an average depreciation rate of 25.9%, 12.4% more than yellow cars.
| Car color | 3-year depreciation | Average difference from MSRP |
|---|---|---|
| Silver | 23.2% | $9,218 |
| Black | 23.9% | $10,867 |
| Brown | 24.0% | $10,305 |
| Gold | 25.9% | $11,546 |
The news isn’t great for fans of the BMW palette, namely black and silver. Each monochromatic shade ditches more than the overall market average of 22.5%.
Source: iSeeCars
