Unveiled: Auto Paint Hues with Maximum Depreciation
In a recent study, NexusMedia analysed the impact of paint colour on vehicle depreciation for the 10 best-selling vehicles in the United States. The findings suggest that neutral colours, such as white, grey, silver, and black, tend to retain resale value better than more vibrant or custom colours.
The study, conducted using the EasySearch tool for Shopify, revealed that white bodywork was found to be the shade most resistant to depreciation. Cars painted white typically depreciate less and maintain higher resale values. Grey cars followed closely, with an average depreciation of 18.02 percent, seeing a loss of $7,067. Silver paint was closely followed, with an average depreciation of 21.32 percent, or $8,232.
On the other hand, black was rated as the second-worst colour for depreciation, averaging a loss of 23.30 percent, or $10,084 across a five-year period. Blue emerged as the colour likely to lose owners the most money, averaging 27.11 percent in depreciation, equivalent to $12,449 in value lost.
Interestingly, depreciation for blue paint was not even across the 10 vehicles studied. A Honda CR-V lost 19.44 percent, while a Ford F-150 lost 42.57 percent in the same hue.
The spokesperson from NexusMedia stated that car depreciation is influenced by psychology, technology, and market perception. Vehicles are no longer purely functional assets; they are becoming lifestyle statements, where even minor visual characteristics can significantly impact financial outcomes years after purchase.
Custom paint jobs or modifications tend to increase a vehicle’s insurance premiums and may negatively impact depreciation due to their narrower market appeal and potential increased risk factors for insurers. Opting for black paint on a Tesla Model Y, for instance, causes the car's value to drop by 51.65%.
The study findings suggest unexpected winners and losers in the resale market due to colour choices. For the best-selling cars in the U.S., choosing a neutral factory paint colour—particularly white, grey, or silver—helps protect the car’s resale value the most, whereas custom or unusual colours tend to depreciate faster and raise insurance costs.
However, the spokesperson did not provide specific data on depreciation for other vehicles or colours in the study. The study compared the depreciation of 10 best-selling vehicles in the US across five widely available paint colours.
[1] NexusMedia Press Release, "Study Reveals Impact of Paint Colour on Car Depreciation," 1st July 2022. [3] Insurance Industry Journal, "Insurance Premiums and Car Colour: What You Need to Know," 15th July 2022.
- The study by NexusMedia showed that cars painted white, grey, or silver depreciate less and maintain higher resale values compared to others.
- The Tesla Model Y's value drops significantly by 51.65% when painted black, as per the study findings.
- The study revealed that blue cars see the highest depreciation rates, with owners losing an average of $12,449 in value over five years.
- Vehicles with custom paint jobs or modifications tend to have higher insurance premiums and faster depreciation due to narrower market appeal and increased risk factors for insurers.
