Everybody knows that cars lose a lot of their value in their first few years on the road. But in some cases, the color of a vehicle can make this unhappy reality much worse. In fact, some colors lead to huge dollar losses in a mere three years, according to recent research from iSeeCars.
The average vehicle loses 22.5% of its value after three years on the road, iSeeCars found. While some colors fare better — such as yellow vehicles, which lose just 13.5% of their value in that time — others see their value drop by more than $10,000.
In the study, iSeeCars looked at pricing data for more than 1.3 million used cars from the 2020 model year and calculated how a vehicle’s color impacted how fast it lost value.
The website says cars of the following colors fall in value the fastest during the first three years of a car’s lifespan.
5. Purple
The three-year depreciation rate for cars of this color: 22.7%
The average three-year depreciation rate among all cars (for comparison): 22.5%
Overall, purple vehicles do not hold their value well. Yet, among both SUVs and minivans specifically, purple versions depreciate slower than average.
4. Silver
The three-year depreciation rate for cars of this color: 23.2%
The average three-year depreciation rate among all cars (for comparison): 22.5%
In a summary of the findings, Karl Brauer — iSeeCars executive analyst — notes that every year, consumer preferences regarding color tend to shift. However, he adds:
“But one component remains consistent — common colors like black and silver are never the best for resale value retention. There are just too many cars available in those colors to elevate resale value.”
3. Black
The three-year depreciation rate for cars of this color: 23.9%
The average three-year depreciation rate among all cars (for comparison): 22.5%
As Brauer notes, there are simply too many black cars on the road to elevate the color’s resale value. It’s the old law of supply and demand at work.
2. Brown
The three-year depreciation rate for cars of this color: 24%
The average three-year depreciation rate among all cars (for comparison): 22.5%
Brown vehicles generally do not hold their value well. However, there is one big exception: In the sedan category, brown holds its value better than any other color. According to iSeeCars:
“Brown is a conservative, non-flashy color that blends in and doesn’t make any waves, which apparently makes it popular with buyers in this category.”
1. Gold
The three-year depreciation rate for cars of this color: 25.9%
The average three-year depreciation rate among all cars (for comparison): 22.5%
Gold cars lose a whopping $11,546 in value over three years, on average. So, if you plan to drive a gold car, you might want to hold it until it falls apart on you.
Car colors that hold their resale value
Colors that result in a loss of value that is less than the average of 22.5% are:
- Yellow: 13.5% depreciation over the first three years
- Beige: 17.8%
- Orange: 18.4%
- Green: 19.2%
- Red: 20.6%
- White: 21.9%
- Blue: 22%