|Average 3-Year-Depreciation By Car Color|
|Car Color||Average Depreciation Over 3 Years||% Difference Compared to the Average Car|
Green and orange cars also retain their value well and are also less common—together, yellow, orange, and green cars make up only 1.2 percent of all three-year-old cars. However, rarity alone does not determine how much a vehicle depreciates. The three worst paint colors—beige, purple, and gold—have a 0.7 percent share, but depreciate more than 10 percent worse than average. “Again, we find that this isn't just due to the kinds of cars that tend to come in these colors,” explained Ly. For example, gold color cars make up only a 0.6 percent share of SUVs and a 0.5 percent share of sedans, but have the worst and second-worst depreciation within these segments, at 35.7 percent and 39.3 percent, respectively. “Across almost every bodystyle, gold color vehicles have some of the worst depreciation rates of any color,” noted Ly.
However, gold color cars are not just vehicles with high mileage. For example, coupes tend to have lower average mileage than the typical car, and depreciate 29.2 percent over the first three years. However, gold coupes depreciate 35.8 percent over the same period, a rate even greater than the overall average, despite averaging 25,023 miles while coupes overall average 29,337 miles. “We speculate that mileage alone can't explain the color depreciation pattern and that gold's near-universally poor depreciation may reflect lower consumer demand for the color — given the choice, consumers may just prefer the more common colors or flashier colors,” Ly suggested.
When examining color popularity, the most popular car colors—white, black, and gray—depreciated at a rate very close to average. “Because these colors are so common, buyers can shop around more easily if they're interested in these colors, reducing the amount of pricing power for dealers,” said Ly. “On the flip side, car buyers who are interested in more neutral colors like white cars, black cars, or gray cars, can likely find a deal on these vehicles in the used car marketplace.”
Other colors that are less common, but aren’t as flashy also depreciate at a rate slightly above average. These include blue cars, brown cars, and silver cars.
|Average Days on Market for 3-Year-Old Cars by Color|
|Car Color||Average Days on Market||% Difference Compared to Average|
iSeeCars.com analyzed over 2.1 million used three-year-old cars. Depreciation over three years was calculated by comparing the average list price to the average MSRP (inflation-adjusted by 1.03, according to the United States Bureau of Labor Statistics) for each car. The data were then aggregated for each color, as well as for each color and bodystyle. Colors with fewer than 1000 cars were excluded from the analysis.
iSeeCars.com is a car search engine that helps shoppers find the best car deals by providing key insights and valuable resources, like the iSeeCars VIN check report. iSeeCars.com has saved users over $203 million so far by applying big data analytics powered by over 25 billion (and growing) data points and using proprietary algorithms to objectively analyze, score and rank millions of used and new vehicles and thousands of dealers. Based in the Boston area, iSeeCars.com was founded by TripAdvisor and SAP veterans determined to improve the car shopping experience for consumers.