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Could yellow cars save you money at resale?Back

YellowCarsAccording to a new study by car comparison and shopping website,, if you’re really concerned about the resale value of your car and avoiding depreciation, you need to choose its colour wisely.

The study reports that to avoid depreciation you should consider opting for a less popular colour of car such as yellow, orange or green, which fared better in its depreciation study, than the popular colours such as black and silver.

Using data pooled from more than 20 million used cars of all different colours between the years 1981 and 2010, and using the vehicle’s original MSRPs (account for inflation), was able to determine that yellow cars depreciated by an average 26.2 per cent over five years with orange and green cars following suit at 27.6 and 31.3 per cent respectively.

Phong Ly, CEO and co-founder of 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; if teal and green are included, the percentage still goes up to just 5 percent. The dearth of supply of such colors may drive prices up.”

The study went on to reveal how lower trends of depreciation of less common colours was illustrated across a number of different car types to include convertible cars, coupes, sedans, SUVs and pickup trucks. Among SUVs, the ones painted yellow on average showed the lowest depreciation, and in convertibles, it was the teal coloured cars that depreciated the least.

Black cars did not perform as well overall given the fact that they are so much more popular than yellow cars. Data from revealed that over five years, black cars depreciated at an average rate of 34.4 per cent of their original cost with grey closely behind at 34.2 per cent, silver at 34 per cent and white at 33.7 per cent.

So what does this all mean? Economically speaking, the less common colours of car are made in fewer numbers and therefore hold their value longer than colours that enjoy a greater market saturation. Colours such as yellow, orange or teal are sought out by buyers who are looking for something a little but unique who may be willing to pay a bit extra to enjoy a particular shade.

So, why not take the plunge and consider a yellow or orange car next time you enter the forecourt, it might very well save you some pennies in the future!

Posted by Leana Kell on 27/06/2014