When it comes to reselling your car, its color can have a big impact on its resale value, according to a report from iSeeCars.com.
But the colors that most help you get more money for your old vehicle may surprise you.
iSeeCars looked at 650,000 vehicles that were recently sold and were all three years old. It then compared the vehicles’ depreciation value. What it found was that the most popular colors of new vehicles — white, black and silver — didn’t help in making the value of the vehicles depreciate any less, but some of the least popular colors of new vehicles — like yellow and orange — made the vehicles retain more of their value when being sold on to another owner.
Yellow cars depreciated 4.5% over 3 years, while orange cars depreciated 10.7% over that time — faring much better than the 15% average three-year depreciation for vehicles overall.
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In a study done by iSeeCars.com, cars that are yellow (one of the least popular colors of new vehicles) depreciated in value the least after 3 years. In contrast, cars in favored colors like white, black and silver depreciated in value about three times faster over that timeframe.
Silver vehicles depreciated just a hair better than the average, at 14.8%, and white and black vehicles depreciated worse than the average, at 15.5% and 16.1% respectively.
“Yellow is among the least popular car colors with the lowest vehicle share, and is commonly a color for sports cars and other low-volume vehicles that hold their value relatively well,” iSeeCars executive analyst Karl Brauer said of the findings. “Because yellow vehicles are so novel in the secondhand marketplace, people are willing to pay a premium for them.”
Vehicle depreciation by color
Depreciation percentages over 3 years
Yellow 4.5%
Orange 10.7%
Purple 13.9%
Red 14%
Green 14%
Blue 14.3%
Gray 14.3%
Beige 14.4%
Silver 14.8%
Overall average 15%
White 15.5%
Black 16.1%
Gold 16.7%
Brown 17.8%
Source: iSeeCars.com
Vehicle color value by vehicle segment
SUVs
- Average depreciation over 3 years: 16.6%
- Best color for value retention: Yellow, -2.7% depreciation over 3 years
- Most-depreciating color: Brown, 19.4% depreciation over 3 years
Trucks
- Average depreciation over 3 years: 11.7%
- Best color for value retention: Beige, 3.8% depreciation over 3 years
- Most-depreciating color: Green, 14.6% depreciation over 3 years
Sedans
- Average depreciation over 3 years: 14%
- Best color for value retention: Purple, 10.7% depreciation over 3 years
- Most-depreciating color: Black, 15.5% depreciation over 3 years
Convertibles
- Average depreciation over 3 years: 15.8%
- Best color for value retention: Yellow, 11.2% depreciation over 3 years
- Most-depreciating color: Black, 17.3% depreciation over 3 years
Coupes
- Average depreciation over 3 years: 8.5%
- Best color for value retention: Orange, 5.6% depreciation over 3 years
- Most-depreciating color: White, 10.3% depreciation over 3 years
Minivans
- Average depreciation over 3 years: 18.4%
- Best color for value retention: Green, 13.9% depreciation over 3 years
- Most-depreciating color: Red, 21% depreciation over 3 years
Source: iSeeCars.com
U.S. states where consumers spend the most on cars
U.S. States Where Consumers Spend the Most on Cars
Photo Credit: Oaklizm / Shutterstock
Amid recent concerns about inflation in the economy, the market for new and used vehicles is one of the sectors that has drawn the most attention. With the global economy still facing ongoing supply chain challenges—particularly a shortage of semiconductor chips needed for computer systems in modern vehicles—fewer new cars are hitting the market, which has raised demand for pre-owned vehicles. Additionally, rapidly rising gas prices in recent weeks has boosted demand for more fuel-efficient vehicles.
The result has been higher prices for both new and used cars. According to recent data from the Bureau of Labor Statistics, the prices for new vehicles rose 12.4% from February 2021 to February 2022, while used cars and trucks saw price increases of 41.2% last year—one of the largest increases of any category in the Consumer Price Index.
The recent spike in vehicle prices stands out in part because the price for cars has otherwise shown a slow rate of growth in recent years. From 1997 to 2020, per capita annual spending on vehicle purchases rose from $930 to $1,399, which averages out to a 1.8% annualized increase—a figure in line with normal levels of inflation.
But rising vehicle prices recently are worrying for vehicle owners because other costs associated with owning a car have grown more rapidly over time. Costs to operate a vehicle, like gas, maintenance, and parts, grew 84.1%—about 2.8% per year—from $1,166 in 1997 to $2,147 in 2019, before falling in 2020 with the onset of the pandemic.
Spending on vehicle operating expenses has grown faster than spending on vehicle purchases
In fact, the cost of operating vehicles accounts for more than half of consumer spending on motor vehicles in the U.S. Total spending on new and used vehicles amounts to nearly $461 billion per year, according to data from the Bureau of Economic Analysis. The combined cost of fuels, lubricants, and fluids; maintenance and repair; other services; and parts and accessories totals more than $591 billion annually—56.2% of all dollars spent in the category.
Vehicle operation accounts for more than half of consumer spending on motor vehicles
However, spending on vehicle purchases and operations can vary significantly by state. Most of the states spending highly on both purchases and operations are found in the Plains and Mountain West regions. These leading states are less densely populated, which makes car travel vital, and also have harsher winters than other parts of the country, which reduces fuel economy and may increase the need for additional parts or maintenance. At $2,028, Nebraska leads the nation in annual per capita spending on vehicle purchases—the only state to top $2,000—while neighboring Colorado leads in per capita spending on operation at $2,330. But the most expensive state for car owners overall is found in the Northeast. The residents of New Hampshire spend $4,195 per capita on vehicle purchases and operation each year, just edging out Nebraska, where the annual spending totals $4,193.
The states that spend the most on vehicle purchases and vehicle operating expenses
The data used in this analysis is from the U.S. Bureau of Economic Analysis 2020 Personal Consumption Expenditures. To identify the states spending the most on cars, researchers at CoPilot calculated total motor vehicle spending per capita in 2020, which includes both new and used vehicle purchases as well as vehicle operation expenses. Vehicle operation includes spending on fuels, lubricants, and fluids; maintenance and repairs; parts and accessories; and other motor vehicle services.
Here are the states spending the most on motor vehicles.
15. Alaska
Photo Credit: Marcus Biastock / Shutterstock
- Total motor vehicle spending per capita: $3,563
- New & used motor vehicle purchases: $1,467
- Motor vehicle fuels, lubricants, & fluids: $507
- Motor vehicle maintenance & repair: $661
- Motor vehicle parts & accessories: $389
- Other motor vehicle services: $539
14. North Dakota
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- Total motor vehicle spending per capita: $3,572
- New & used motor vehicle purchases: $1,765
- Motor vehicle fuels, lubricants, & fluids: $613
- Motor vehicle maintenance & repair: $679
- Motor vehicle parts & accessories: $290
- Other motor vehicle services: $227
13. Texas
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- Total motor vehicle spending per capita: $3,615
- New & used motor vehicle purchases: $1,740
- Motor vehicle fuels, lubricants, & fluids: $781
- Motor vehicle maintenance & repair: $552
- Motor vehicle parts & accessories: $227
- Other motor vehicle services: $315
12. Utah
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- Total motor vehicle spending per capita: $3,627
- New & used motor vehicle purchases: $1,698
- Motor vehicle fuels, lubricants, & fluids: $762
- Motor vehicle maintenance & repair: $611
- Motor vehicle parts & accessories: $321
- Other motor vehicle services: $235
11. Vermont
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- Total motor vehicle spending per capita: $3,632
- New & used motor vehicle purchases: $1,755
- Motor vehicle fuels, lubricants, & fluids: $784
- Motor vehicle maintenance & repair: $668
- Motor vehicle parts & accessories: $290
- Other motor vehicle services: $135
10. Oklahoma
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- Total motor vehicle spending per capita: $3,654
- New & used motor vehicle purchases: $1,823
- Motor vehicle fuels, lubricants, & fluids: $924
- Motor vehicle maintenance & repair: $408
- Motor vehicle parts & accessories: $244
- Other motor vehicle services: $254
9. Minnesota
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- Total motor vehicle spending per capita: $3,675
- New & used motor vehicle purchases: $1,687
- Motor vehicle fuels, lubricants, & fluids: $811
- Motor vehicle maintenance & repair: $655
- Motor vehicle parts & accessories: $312
- Other motor vehicle services: $210
8. Colorado
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- Total motor vehicle spending per capita: $3,700
- New & used motor vehicle purchases: $1,370
- Motor vehicle fuels, lubricants, & fluids: $714
- Motor vehicle maintenance & repair: $826
- Motor vehicle parts & accessories: $404
- Other motor vehicle services: $386
7. Missouri
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- Total motor vehicle spending per capita: $3,779
- New & used motor vehicle purchases: $1,610
- Motor vehicle fuels, lubricants, & fluids: $982
- Motor vehicle maintenance & repair: $625
- Motor vehicle parts & accessories: $262
- Other motor vehicle services: $300
6. Maine
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- Total motor vehicle spending per capita: $3,805
- New & used motor vehicle purchases: $1,690
- Motor vehicle fuels, lubricants, & fluids: $988
- Motor vehicle maintenance & repair: $623
- Motor vehicle parts & accessories: $282
- Other motor vehicle services: $223
5. Iowa
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- Total motor vehicle spending per capita: $4,015
- New & used motor vehicle purchases: $1,946
- Motor vehicle fuels, lubricants, & fluids: $1,028
- Motor vehicle maintenance & repair: $613
- Motor vehicle parts & accessories: $290
- Other motor vehicle services: $138
4. Wyoming
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- Total motor vehicle spending per capita: $4,068
- New & used motor vehicle purchases: $1,837
- Motor vehicle fuels, lubricants, & fluids: $846
- Motor vehicle maintenance & repair: $695
- Motor vehicle parts & accessories: $448
- Other motor vehicle services: $241
3. Montana
Photo Credit: Mihai_Andritoiu / Shutterstock
- Total motor vehicle spending per capita: $4,073
- New & used motor vehicle purchases: $1,920
- Motor vehicle fuels, lubricants, & fluids: $829
- Motor vehicle maintenance & repair: $722
- Motor vehicle parts & accessories: $372
- Other motor vehicle services: $230
2. Nebraska
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- Total motor vehicle spending per capita: $4,193
- New & used motor vehicle purchases: $2,028
- Motor vehicle fuels, lubricants, & fluids: $1,039
- Motor vehicle maintenance & repair: $683
- Motor vehicle parts & accessories: $268
- Other motor vehicle services: $175
1. New Hampshire
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- Total motor vehicle spending per capita: $4,195
- New & used motor vehicle purchases: $1,999
- Motor vehicle fuels, lubricants, & fluids: $828
- Motor vehicle maintenance & repair: $812
- Motor vehicle parts & accessories: $239
- Other motor vehicle services: $317
