Vehicle depreciation by colour says Yellow rules, Gold is worst performing

While purchasing a vehicle, among many factors, colour is one of the primary considerations the customers look for after deciding on a make and model. Accept it or not, the exterior colour of a vehicle plays important role in deciding its resale value as well.

Yellow colour is widely visible among the hi-end sports cars.
Yellow colour is widely visible among the hi-end sports cars.

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According to a study conducted by iSeeCars on more than six million new and used vehicles that were sold between 2017 and 2020, Yellow is the colour that sees the slowest depreciation among a host of colour options, while Gold is the colour that people try to avoid most while looking for a used vehicle.

As it appears, yellow cars depreciate just 20.4% over three years. On the other hand, Gold depreciates 45.6% over the same period. Yellow might not be the widely desired car colour for the buyers, but many people opt for this colour option, amidst the wide popularity of Black, White, Blue and Red.

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Interestingly, despite being the slowest depreciating car colour, Yellow has the lowest mass-market vehicle share in terms of colours. On the other hand, it is the most common colour for sportscars and other low-volume vehicles. These Yellow coloured vehicles hold their value relatively better than the other colour options.

Beige and Orange are the second and third best-performing colours in terms of value depreciation. They witness a depreciation value of 22.8% and 27.1% respectively. Orange is most often found on low-volume sports and muscle cars, just like Yellow. Both the Yellow and Orange colours are widely visible in limited edition hi-end cars.

Despite being very popular, Black, White, Blue and Red colours are not amo0ng the top five best performing slow value depreciating colours. Black, which is the most favourite colour among SUV buyers has a depreciation value of 38.4%,m while White has a value of 38%. The Blue and Red come with a depreciation value of 37% and 36.9% respectively.

So far, as it appears, the more common the colour is, the more the fast depreciation happens for it. On the other hand, the exciting colour witness slower depreciation. It may be because people pick exciting colours for exciting cars. However, there are exceptions as well.

First Published Date: 04 May 2021, 13:38 PM IST
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