New study reveals the best and worst car colors for resale value — with one unlikely top choice

There's also a list of models that are known to retain a good resale value for a longer time.

PUBLISHED 5 HOURS AGO

Young woman looking for a new car in car dealership. She is talking with salesman | (Cover image source: Getty Images | BlackCAT)

It's normal for motorists to check the resale value of cars before purchasing a new ride since they are considered depreciating assets. A 2019 article indicated that most drivers keep their cars for six years before putting them up for sale to buy another one. According to a new study conducted by iSeeCars, a good part of the resale value depends on how a car's color affects its resale value. For the study, the company analyzed the colors of 650,000 cars that were driven for three years, to see how far they affected prices in the used automobile market.

Subaru BRZ in silver driving on the highway | (Image Source: Getty Images | Brandon Woyshnis)

According to the study, the depreciation for yellow cars was at 4.5% while it was as high as 14.3% for blue cars. In the case of orange automobiles, the average three-year depreciation reached 15%. Other colors like blue, grey, silver, and beige are considered slightly below the average, while white is just above average. Black, golden, and brown cars have the highest levels of depreciation at the rate of 17.8% over three years.

According to analyst Karl Brauer, the presence of yellow and orange cars on the list is due to their rarity. “Because yellow vehicles are so novel in the secondhand marketplace, people are willing to pay a premium for them,” he said. “Rarity alone does not equal value,” Brauer added, before explaining “If a color doesn’t resonate with enough used car shoppers it will hurt resale value, even if it’s uncommon.”

A Chevrolet Camaro SS | (Image Source: Getty Images | tomeng) — Stock photo of a Chevrolet Camaro SS | (Image Source: Getty Images | tomeng)

According to US News, there is a list of models that hold onto their values for a longer time. First on the list is the Toyota Corolla which has been the go-to option for car buyers who seek a comfortable, reliable, and value-oriented small sedan, for quite some time. Apart from its popularity among consumers, the quality assurance for the car is also pretty high. According to the report, this car's five-year depreciation stands at 24.5%. Next on the list is the Subaru Crosstrek which is also a great car. The car is perfect if you are looking for an all-weather commuter or family car compared to the masses of front-wheel-drive competitors and the car's five-year depreciation stands at 24.5%. There are also cars such as the Chevrolet Camaro which is a great choice if you want a sports car, with a five-year depreciation of 24.2%. The Subaru BRZ ranks pretty high on the list of affordable sports cars as well since the car offers fantastic value for money and retains a good resale price for the first five years. The depreciation rate is around 23.4%.

According to recent reports, Electric vehicles have not been doing very well in the resale market. They seem to be the biggest losers with resale values falling by 20% or more in the past 12 months. In addition to that, resale values also affect how much one will pay to lease a particular model as costs are largely based on the difference between a model's transaction price and what it's expected to be worth at the end of a financial term, according to Forbes.