SBT Car News

Car Colors That Can Shove Resale Values

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It sounds a bit surprising but research suggests that certain car colors can bring more money back to an owner at trade in time than others. For instance yellow, a color typically aligned with the lemons – not exactly an image most people prefer to embrace – leads the pack in this regard. On average a yellow car that originally cost certain price can be expected to retain about 7.5% more of its value after five years than the exact same car painted black. The figure is the result of the detailed and close study of over 20 million used car listings from the period of 1981 through 2010 conducted by the Boston based used-vehicle website iSeeCars.com. Other colors the study found that bring back the most return or resale value include orange, teal and ever-green. The CEO of iSeeCars.com is stated to have said:

“While a popular car color like black or silver may get more interest and sell faster, our analysis indicates it may not get as high a value as a car, say, in yellow. Scarcity may account for the difference. Only 1.1 percent of all cars are yellow and orange; the dearth of supply of such colors may drive prices up”

According to automotive paint supplier PPG Industries, 21 percent of the market agreed that white was the most popular new vehicle color among new car buyers in North America last year, followed by the 19 percent for neutral black, 17 percent for gray and 15 percent for silver. Moreover, the statistic shows that how cars in the various colors of the automotive rainbow add up in terms of their average depreciation rates after five years of ownership: Yellow  26.2%, Orange 27.6%, Green 31.3%, Teal 31.4%, Red 31.7%, Beige/Brown Gold 33.3%, Blue 33.6%, White 33.7%, Silver 34.0%, Gray 34.2% and Black34.4%.

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Perhaps used car buyers, are more inclined to choose an expressive color that stands dominantly in the crowd, while those in the new-vehicle market may instead prefer shades that just blend in. Or it’s just the forces of supply and demand exerting their unmoved influence. Models painted in bizarre shades that decay on a dealer’s disposal for a lack of interest can usually be purchased at a lower negotiated price than those which are offered in more common colors. Cars that don’t sell quickly cost dealerships money in terms of financing and other expenses requires to clear them up from inventory even if it means slacking down the markups down to the bare skin. However, at times the reduction of markup is not even required, only the change in color could bring the vehicle back on stage!