It’s been two brutal years for car buyers. Due to a shortage of microchips, both new and lightly used cars have become scarce. That has pushed up prices. Dealers have started charging above the manufacturer’s suggested retail price (MSRP) for some vehicles.
The period was mixed for car companies. They have been able to drop expensive, profit-robbing incentives. However, low inventory means low sales. Some assembly lines are closed.
The shortage of semiconductors is unlikely to end this year. These chips power the infotainment and navigation systems of most vehicles. Supply chains have been disrupted, mainly due to the COVID-19 pandemic.
One of the main by-products of the car shortage is that people own a car for longer. The average age of a car on American roads is just over 12 years. Better made cars are a reason.
When people look at the value of their used car, they usually look at how many miles they have traveled and whether they have been in an accident. It turns out there is another factor. The color of a car can affect its value.
When iSeeCars are recently Car color and its effect on value: which colors help and harm a car’s resale value? ISeeCars Executive Analyst Karl Brauer noted, “Because depreciation is the single largest cost of owning a vehicle, consumers should carefully consider their choice of color, especially if they plan to sell their vehicle.”
Interestingly, popular colors such as black, white, and red have little effect on value, if the measure is three-year depreciation. What is the best car color? Brauer says, “Because yellow vehicles are so new to the used market, people are willing to pay a premium for them.” Three-year depreciation for yellow cars is 4.5%. That’s well ahead of the second-place orange color with a three-year depreciation rate of 10.7%
The worst car color for holding value is brown, with a 17.8% depreciation
These are the car colors with the most and least depreciation:
|Colour||3 years % depreciation||Compared to the overall average|
Click here to see which is the most expensive used car in America.