Some cars depreciate faster than others. Is your car colour on the list of best or worst depreciation colors?
Do I need to buy a car before my car rates go into effect?
President Donald Trump has announced 25% tariffs on imported cars and major auto parts. This makes sense for consumers and automakers.
- Automotive research firm ISEECARS has conducted a study to uncover the best car colours and worst car colours for depreciation.
- Some colors have above average depreciation rates, but below average rates still have many options.
- Even if the car has above average depreciation speeds, there are still things the owner can do to ensure optimal value retention.
Vehicles that experience high depreciation in a few years are not often for new car buyers, but they are great for second hand car buyers. In fact, investigating a vehicle with a high depreciation rate is a good way to find a trade in a used car.
Meanwhile, some drivers may avoid rapidly depreciating vehicles, retaining some trade-in value or sell their cars later. Some cars have fallen in colour than others, according to a survey conducted by ISEeCars.com, a car search engine and research website.
Research shows that the colors of three cars with the worst depreciation rate
- Gold: 34.4% 3-year depreciation
- White: 32.1% 3-year depreciation
- Black: 31.9% 3-year depreciation
Most vehicles tend to depreciate the second vehicle that rolls off the dealer lot, but the depreciation rate above is above the average rate. So if you’re in the market for new vehicles, you may not want to buy it with gold. Paying extra money for a golden model can prove to be even more costly. Thankfully there are plenty of car colors with sub-average depreciation rates.
Research shows that the colour of cars with the highest depreciation rate
- Yellow: 24.0% 3-year depreciation
- Orange: 24.4% 3-year depreciation
- Green: 26.3% 3-year depreciation
According to the survey results, “yellow cars retain their value.” So if you’re looking for a new vehicle, this may be a colour to consider value retention. If you are looking for a used car deal, avoiding this colour will save you money due to a low depreciation rate. The overall average 3-year depreciation rate for the colours included in the study was 31%.
How to use vehicle depreciation fees to find good car deals
Finding a substantial amount in a used car can be difficult, but improving your search by including vehicles with a high drop rate can save drivers thousands of dollars. A vehicle with a high depreciation rate in a few years may have lower mileage and a much lower price than the original MSRP.
One example of a vehicle with a high depreciation rate is the 2023 Dodge Hornet. The 2023 model year is the first year in its production history. Just a few years after its first release, the Hornet depreciated by more than 31%. The original MSRP for the 2023 Hornet is $31,590. According to the Kelley Blue Book, the fair purchase price is $20,154. This is a whopping $11,436 worth of value, and is a steal for stakeholders as a used model.
Another great example of vehicle depreciation is the 2022 Nissan Leaf. The 2022 Leaf will feature the original MSRP at $27,400, while the Kelly Blue Book Fair purchase price is just $14,258. This is a depreciation rate of approximately 47%. Car buyers can save a lot of money on Nissan leaves by purchasing second-hand models that have been significantly depreciated over the last few years.
Car maintenance tips to reduce depreciation
While there is no surefire way to avoid depreciation on a car entirely, proper maintenance and maintenance can help drivers retain as much value as possible in the vehicle.
https://www.youtube.com/watch?v=25-hg471mic
Tips for minimizing depreciation
- Regular maintenance
- Interior cleaning
- External protection
According to State Farm, there are several ways for car owners to minimize depreciation. Ultimately, proper car care corresponds to low depreciation and high resale value in the long run, so take these oil changes seriously. The more you can introduce your car, the easier it will be to get a fair purchase price or trade-in value later.