We all know that vehicles depreciate over time. As a car owner, you realize that factors like wear and tear, design and demand in your area can all impact the value of your car. You can get an idea of your used car’s value with the free Value Range tool from CARFAX Canada.
But, did you know that your vehicle’s colour can impact its resale value? What is the most popular car colour in the Canadian market? Will it change over time? The colour of a vehicle may seem irrelevant, but it can affect how much you buy or sell a car for.
For many, a car is a major investment that they are not willing to gamble on. When you’re in the market for a new vehicle, consider the following information.
What is the most popular used car colour?
Since the mid-2000s, Canadians have seen a decrease in the popularity of silver cars in favour of white colours.
Interestingly, iSeeCars published a study stating that orange and yellow cars tend to depreciate less than other colours. When selling an orange or yellow car, the study states a dealership may offer a better trade deal. This is because buyers looking for more popular colours like black and white have a lot more choices, meaning sellers have more competition. Those selling more oddly-coloured vehicles may have more bargaining power because they have less competition – so people looking specifically for an orange or yellow vehicle can sometimes negotiate a higher trade-in value. The study explains that many drivers associate bright colours like orange with “high energy and high performance,” which can boost demand for certain models.
However, trends do change over time, so it may be tough to pinpoint the best car colour to buy. Within Canada, black and blue are becoming more and more popular, according to a survey by Desrosiers Automotive Consultants. Experts in the industry predict a rise in vibrant colours but state that white will stay the most popular car colour for years to come.
How does colour impact resale value?
The colour of your vehicle can impact its resale value depending on the market. For instance, a black 4x4 may maintain its resale value over time as the colour and style are desirable for a larger market. However, the impact that colour has on a vehicle’s resale value depends on how you look at it. You may have an easier time finding a buyer for a black or white car but may not get offered as much for it as there are many on the market.
Currently, many people gravitate towards bright coloured vehicles initially, but end up purchasing neutral shades. This is because many people are afraid to risk losing resale value on a vibrant shade. However, bright colours are usually associated with fast, sports-style vehicles, so a dynamic shade may be an advantage in some cases.
Vehicle wraps can also affect resale value as these cars are usually customized for a specific business or event. Buyers can get a good deal on a used car with a vehicle wrap but may have to pay to have the wrap removed.
Do colour and location impact resale value?
Another factor that affects the best colour to buy is your location. As markets change, so do the types of vehicles that are most useful. For example, neutral coloured 4x4s and large trucks may maintain their resale value over the years in rural areas. However, if you live in an urban area where sports cars are cherished, a red vehicle may get a higher resale value than other colours.
If you’re looking to buy a used car with a high resale value, the best colour to buy is one that matches the market of your current location. Get started determining the vehicle’s value with this free car value range.