When buying a new car, one of the many factors to consider is the color. While color is mostly an aesthetic choice, some colors tend to have lower resale values and can save buyers money in the long run. In this article, we’ll examine which car colors tend to be the cheapest and why.
How Car Color Affects Resale Value
One of the biggest factors in determining a used car’s resale value is its color. Certain colors tend to hold their value better than others when it comes time to sell or trade-in the car. More popular colors like black, white, gray, and silver generally have higher resale values. On the other hand, colors on the opposite end of the spectrum like bright yellow, orange, or green tend to have lower resale values. There are a few reasons for this:
- Neutral colors appeal to a wider range of buyers. Bright, flashy colors tend to be more polarizing.
- Black, white, gray, and silver are easier to keep clean and hide minor scratches/dings.
- Brighter colors often feel dated faster, while neutrals maintain a more timeless look.
So when considering long-term value retention, sticking with more mainstream colors is wise. But for buyers simply looking for the best deal upfront, choosing a lower-demand color can lead to significant savings.
The Cheapest Car Colors
According to an iSeeCars study that analyzed over 6.1 million car sales, the colors with the lowest resale value were:
| Rank | Color | Depreciation |
|---|---|---|
| 1 | Gold | 45.6% |
| 2 | Brown | 45.5% |
| 3 | Orange | 44.9% |
| 4 | Yellow | 44.8% |
| 5 | Purple | 44.7% |
As you can see, shades like gold, brown, orange, yellow, and purple depreciated the most over the first 5 years of ownership. On average, these colors lost around 45% of their value in that time, several percentage points higher than more popular neutrals.
This data matches broader industry trends. Historically, hues like gold, brown, and purple have lagged in popularity and resale value. And bright shades like orange and yellow, while eye-catching, feel dated faster than softer pastels. Furthermore, these colors may turn off buyers who prefer safer, more versatile options when shopping for used cars.
Estimating Savings by Color
To demonstrate the potential savings, let’s compare two 2020 Toyota Camry LE four-door sedans with identical features, miles, and condition – the only difference being their exterior color.
According to Kelley Blue Book, the current private party value of a 2020 Camry LE in “good” condition with 45,000 miles is:
- Black: $18,997
- Orange: $17,862
That’s a $1,135 discount simply for choosing the orange car over an identical black one. Assuming you purchased both cars new for around $25,000, the orange Camry would have depreciated around 44.7% of its value – closely matching the 44.9% average depreciation for orange cars. The black Camry would have only depreciated around 24%, holding its value much better.
While not every car follows these depreciation averages exactly, this example illustrates the potential money saved by choosing a lower-demand color. The savings may be even greater for luxury or performance cars, where popular colors carry even higher premiums.
Other Ways Color Affects Cost
Aside from resale value, car color can impact cost in a few other ways:
- Insurance rates – Some insurance providers charge slightly higher premiums for red cars, as they are perceived as “high-risk” and more likely to be pulled over.
- Maintenance – Darker colors like black and darker shades of gray can show scratches and swirl marks more easily. Lighter colors help hide wear and tear.
- Energy efficiency – Light colors reflect heat more effectively. Black and dark-colored cars can get hotter inside, increasing A/C usage and decreasing fuel economy.
However, these factors amount to relatively small differences in ongoing cost. The impact on depreciation is typically the most significant financial consideration.
Non-Financial Considerations
While the focus here is on cost, there are a few other important factors to think about when choosing a car color:
- Personal preference – Pick a color you enjoy looking at and will be happy driving for years. While resale value matters, your own taste trumps all.
- Climate – Lighter colors stay cooler in hot climates, while darker colors show less salt and dirt in colder regions.
- Easy maintenance – Some colors like silver, light gray, and beige hide dirt and imperfections better between washes.
- Safety – Brighter colors increase visibility to other drivers. White, yellow, orange tend to stand out the most.
Striking the right balance between cost, personal preference, and practicality takes some research. If you’re willing to compromise on color choice a bit, there are likely substantial savings within reach.
Conclusion
When shopping for a new or used car, color has a measurable impact on the overall cost of ownership. According to market data, shades like gold, brown, orange, yellow, and purple consistently have the lowest resale values. By choosing a car in one of these colors, buyers can expect to save hundreds of dollars in depreciation over the first 5 years compared to more popular options.
However, more muted and neutral colors like white, black, gray, and silver hold their value better and appeal to a wider range of buyers. So there is a trade-off between maximum savings and future resale value. No matter what color you select, inspecting costs like insurance rates, energy efficiency, and ease of maintenance can optimize the overall financial picture. With the right research, you can find a car color that satisfies both your personal style and budget.