This New Report Shows Paint Color Affects Resale Value Way More Than You'd Think
If you've ever tried to sell your car, you know that there are several factors that can affect how much money you're going to get for it. While some are fairly obvious, like mileage or wear-and-tear, one factor you might not give much thought to is the vehicle's paint color. Studies by iSeeCars, a data-driven car search and research company, show conclusive data that the color of your car can increase or decrease its resale value when compared to others with the same make, year, and model — perhaps up to a $5,000 difference.
Using pricing data compiled over the past year from over 1.3 million three-year-old used cars, the latest study from the company highlights which colors typically sell for more money. "A vehicle's color is among the primary considerations after shoppers have decided on a make and model," said iSeeCars executive analyst Karl Brauer. According to Brauer, you should choose your paint color wisely, as the right choice can help mitigate the depreciation all owners of pre-owned vehicles must deal with.
Last year's report concluded that yellow, orange, and purple were the best three colors, in that order, to improve the resale value of a used car. However, depending on whether the vehicle is a sedan, SUV, minivan, truck, or coupe, those top colors could differ. However, just as with trends and tastes, people's preferences tend to change over time. The latest report by iSeeCars shows some differences from last year of the best and worst color choices for certain vehicle types — along with one big similarity.
Yellow is a great color choice for cars
In both the 2022 and 2023 reports, yellow cars showed the lowest amount of depreciation to their value after three years. This year's report found that yellow cars lose 13.5% of their value (an average of $6,588) compared to the overall average 22.5 percent depreciation of all three-year-old vehicles ($9,674). That's a difference of over $3,000 that car owners can earn from selling their used cars. In addition to being the best color for average resale value for all automobiles, it also topped the list for specific types of vehicles, including coupes, convertibles, and SUVs.
Interestingly, the high resale value of yellow may have less to do with how aesthetically pleasing the color is and more due to supply and demand. "Yellow cars continue to represent the greatest disparity between how many are produced and how many people want one," Brauer stated explained in this year's report. "While not many people want a yellow car, there are clearly more people who want one than exist, which is why yellow performs so well on the secondary market."
Though orange ranked second highest in last year's study, it fell one spot to third in this year's report. In its place is beige, which only has a 17.8% depreciation after three years. Beige was ranked ninth last year but rose precipitously, thanks in part to its popularity with truck owners. Rounding out the top five colors in this year's results were green at the fourth spot and red in fifth place.
Trucks, minivans, and sedans are a different story
While yellow and other bright colors dominate the depreciation charts for coupes, drop-tops, and SUVs, it doesn't fare so well for some very popular vehicle types. That includes off-road trucks, where beige is ranked highest, which helps explain its big jump up the chart for all vehicles in general. Beige and tan are popular colors for new off-road trucks like the Toyota Tacoma and the trend carries over to pre-owned ones. In addition to being the third ranked color overall, orange is number two for off-road trucks, followed by green, brown, and gray.
If you're trying to sell a used sedan, you'll see the least depreciation for brown cars, followed by red, orange, blue, and beige. Like a sedan, brown is a relatively conservative choice for a car owner, which is probably why the two match up well. That may also explain why purple is the lowest-ranked color for sedans.
Interestingly, minivans vary more than any other category in the report. It's the only vehicle type where orange doesn't crack the top five. Instead, green is the best color for a minivan's resale value, followed closely by brown. "Green barely edged out brown with minivan buyers," added Brauer, "again suggesting the conservative earth tone matches the minivan demographic, just as it does with sedan shoppers." However, the rest of the top five colors for minivans are not traditional earth tones: blue, white, and purple.
The worst colors for a car's resale value
For the average vehicle, no color can depreciate its value more than being painted gold, which is more than a little ironic. Overall vehicles with a gold color lose 25.9% of their value over three years, which makes a significant difference of $11,546, more than 1.2 times the overall average. Despite the color's popularity with sedan and truck owners, brown is still ranked the second lowest overall. Black is the third worst color when it comes to retaining a car's value. That may seem surprising, considering how common black is as a vehicle choice, but, like with yellow, it points more toward availability as opposed to people actively disliking the color.
The same can be said for silver, which ranks lowest for minivans, drop-tops, and off-road trucks. "Notice how two of the most popular colors, silver and black, rank near the bottom of the list," explained Brauer. "Many consumers and dealers likely consider these colors 'safe' in terms of widespread acceptance, but they're too common to help a car hold its value."
If supply and demand factor into how color affects the resale value of used cars, don't be surprised if the results turn out differently in future reports. Even if aesthetic preferences don't change overnight, the availability of certain hues could change more easily, and the rankings could shift accordingly. Perhaps a 2024 analysis may even show a new color dethroning yellow as the most valued paint option for a pre-owned vehicle.