ALBAWABA - Car colors play a role in determining the depreciation rate when it comes to reselling a vehicle. While popular colors like white and black are widespread, their abundance puts them at a disadvantage in retaining their value. Interestingly, some rarer colors, such as yellow, outperform the more popular choices like white, black, and silver, according to a study by an American market-focused website.
According to the study conducted by "iSeeCars," yellow tops the list of colors that contribute to price stability when selling a car. Yellow cars only lose about 20% of their value after three years, while the depreciation rate for white cars, for instance, reaches over 38%.
The higher depreciation rate for more common car colors like white, black, and silver is largely linked to their much higher supply compared to other colors.
Price Differentials between New and Used Cars in the Market
The aforementioned equation holds true in our regional markets, but with contrasting criteria and color preferences.
Saeed Al Kutbi, the President of the Used Car Dealers Association in Dubai, explained that colors have a price in the car world, as some types and models increase in value even at the dealership based on their color. He pointed out that some new cars' prices increase after purchase depending on their color.
For instance, the "Mercedes G-Class 63" is sold at around 920,000 AED at the dealership, but its price exceeds one million or one million and 50,000 AED in the used car market for certain colors, such as specific shades of blue and gray.
Al Kutbi further added, "Our markets in the UAE and the Gulf region differ from others. Yellow is distinctive, and there is demand for sports cars, especially luxury ones, in this color. However, in general, traditional colors are the ones that retain the most value when it comes to cars overall.".
