When purchasing a new vehicle, one of the key factors buyers often consider is resale value. The color of the car can play an important role in determining future resale value. Certain colors tend to hold their value better than others when it’s time to sell or trade-in the car. In this article, we will explore which car colors typically have the best resale value.
Most Popular Car Colors
Before looking at resale value, it’s helpful to understand the most popular car colors purchased by consumers. According to data from Axalta, a leading supplier of automotive paints, the most popular car colors in North America for 2022 are:
- White – 24%
- Black – 23%
- Gray – 17%
- Silver – 11%
- Red – 9%
- Blue – 8%
- Brown/Beige – 5%
- Green – 1%
- Yellow/Gold – 1%
- Orange – 1%
White, black, gray, and silver have been the top four most popular colors for years. Buyers tend to stick with neutral and traditional colors when purchasing a vehicle.
Highest Resale Value by Color
Although white, black, gray and silver are the most popular car colors sold, they do not necessarily lead when it comes to resale value retention. According to an iSeeCars study that examined over 6.1 million car sales, the colors with the highest resale value after 5 years are:
| Rank | Color | 5-Year Resale Value Retention |
|---|---|---|
| 1 | Yellow | 48.6% |
| 2 | Orange | 47.5% |
| 3 | Purple | 46.9% |
| 4 | Red | 46.5% |
| 5 | Green | 45.6% |
As you can see, brighter, bolder colors like yellow, orange, and purple top the list for best resale value retention. More common colors like black, white, gray, and silver come in at the bottom of the list.
Why Do Bright Colors Retain Value Better?
There are a few key reasons why vibrant and bold colors tend to retain their value better over time compared to neutral options:
- Supply and demand: Bright colors are less common, so there is more demand for them in the used car market. There is an oversupply of white, black and silver vehicles that can bring resale values down.
- Color trends: Bright or bold colors come in and out of fashion. Certain colors gain popularity, which increases demand for them on the used market.
- Uniqueness: Flashy colors help a car stand out and grab attention. Some used car buyers are looking for a unique color to make their vehicle more distinctive.
While personal color preference plays a role, the underlying economic principles of supply and demand have the biggest impact on resale value.
Best Resale Value by Vehicle Type
The vehicle type also has a significant influence on resale value for specific colors. Here is a look at the top colors by vehicle segment:
Compact Cars
- Yellow
- Orange
- Red
Midsize Cars
- Orange
- Yellow
- Green
Full-size Cars
- Purple
- Orange
- Red
Luxury Cars
- Yellow
- Orange
- White
Sports Cars
- Red
- Orange
- Black
Compact cars and midsize sedans tend to hold value best in bright, vibrant colors like yellow, orange and red. Large luxury cars and sports cars do best in various shades from across the color spectrum.
Best Resale Value Truck Colors
With trucks, especially pickups, the most popular colors tend to retain value better due to high demand:
- White
- Black
- Gray
- Silver
- Red
Truck buyers have different preferences than those purchasing cars. Although not the top colors for resale value with cars, white, black, gray and silver command the highest resale values with trucks.
The Impact of Mileage and Condition
While color has an impact, mileage and overall vehicle condition are also key factors influencing resale value. A car with very high mileage or in poor shape will face substantial depreciation no matter what color it is painted. Conversely, a lower-mileage car in good mechanical shape can better maintain its value despite an unpopular color.
This means color should not be the only consideration for maximizing resale value. Ongoing maintenance and keeping mileage in check will also help retain value over time. However, all else being equal, choosing one of the colors known to hold value can give your vehicle a slight edge when you eventually sell it.
Using Color Popularity by Region
Choosing the right color based on your geographical area is another factor to consider:
- On the West Coast, eco-friendly blue/green colors are popular.
- In the Midwest, red and blue do well.
- On the East Coast, black and other traditional colors lead.
- In the South, white is a preferred truck color.
Reviewing color popularity by region can provide additional guidance as you choose your new vehicle’s color. Opting for a prevalent local color may boost resale potential down the road.
How Long Do You Plan to Own the Vehicle?
The length of ownership also impacts the importance of picking the right color. If you plan to own the vehicle for many years, color becomes less important. But if you expect to sell in 3 years or less, choosing a color with strong resale value can make a bigger difference.
Shorter ownership terms keep you closer to the initial depreciation period when color has a greater influence. For longer ownership, condition and mileage overshadow color more significantly.
Conclusion
While personal color preference is always an important part of choosing your next new car or truck, it’s wise to also consider potential resale value retention. Trucks do best in the most popular colors like white, black, gray and silver. For cars, bolder colors like yellow, orange and red typically hold value the best.
However, condition and mileage play pivotal roles too. Overall, choosing the right color based on your vehicle type, geographic region, and length of ownership can help maximize resale value down the road.
