How choosing the right colour car can help keep motorists out of the red
JUNE 29 2012 – FOR IMMEDIATE RELEASE
WHITE cars hold their value best, while greens and maroons are the kiss of death in terms of depreciation according to CAP, the used car pricing experts.
In a study comparing secondhand values to new prices, CAP found that white cars typically hold around 5% more of their value than the market average for a typical used car.
The trend marks a complete turnaround from the days when dealers used the name ’60 day white’ to reflect the tendency of white cars to outstay their welcome on the forecourt.
But blue cars still languish below market average values, continuing to earn the trade’s disdain with the popular label of ‘doom blue’.
CAP analysed the trade market performance of hundreds of thousands of vehicles over 5 years and found that, for mainstream vehicles, white was consistently the top performer. The analysis also revealed that green remains relatively unpopular in the used car market and that the colour most likely to cost owners heavily in depreciation was purple.
The resurgence of white means that a typical white model can be worth several hundred pounds more after 3 years than an otherwise identical blue one.
In some cases, niche or sporting models prove especially popular in ‘quirkier’ colours and this accounts for the strong performance of pink and yellow cars. But in the mainstream market for typical family cars, consumer tastes tend to be more conservative.
CAP Chief Editor Chris Crow said: “Reviewing CAP’s disposal data over the last 5 years black, silver and grey all performed consistently in line with the overall market. However, colours such as blue, orange and red underperformed whilst gold, green, maroon and turquoise were complete howlers costing their unfortunate owners anywhere between 4 and 6% against CAP Clean benchmark trade values.
“On the face of it, the strong performance of colours such as indigo, pink, purple and yellow may be somewhat surprising but this reflects the niche and often sporty cars wearing them. They are therefore not representative of the run of the mill mass market. However, it is white cars which outperform the whole market beating other widespread colours, like blue, by up to 6% and green by up to 8%, depending on colour-type and condition.
“The lesson for motorists is, when you’re choosing the colour of your new car consider how it will look to prospective buyers when you come to sell it as a used car. Of course, it works the other way too – for the used car buyer there are real bargains to be had if you pick a less popular colour because most of the depreciation has already occurred and you could save serious cash.”
Ever since the glory days of British Racing Green, colour has been the subject of motor trade jokes and parody – such as ‘Jewish Racing Gold’. CAP’s Mike Hind polled dealers and traders on Twitter to find out some current favourites. Here is an edited selection of the few that were fit for print:
Ash Moon (@CarArena) ‘Custard Cruiser, Dog’s **** Red, Baby Sick Green, Vicki’s Dress Purple’
Jim Reid (@jimreidvehicle) ‘Doom Blue (I love it – someone has to!)’
Joe Hague (@joehaguelfc) ‘Doom Blue – can’t possibly repeat the one for red!’
Gareth Kaye (@gazthevanman) ‘Zit yellow – those horrid bronzey ones!’ - also nominated by David Hastings (@d_hastings123)
Barrie Crampton (@BarrieCrampton) ‘We had a red car, with red leather. It was referred to as Dog **** Red, with Baboon’s ****’
Shire Fleet Sales (@ShireFleetSales) ‘Dog **** Red, Doom Blue & Arabic Racing Beige’
Hants 4x4 (@hants4x4) ‘Hearing Aid Beige is one of my favourites & Earwax Orange along with the trusty Dog **** Red!’
Used car pricing and technical information from CAP has been trusted by motor trade professionals for more than 30 years. The company provides trusted and accurate pricing and technical information on cars, vans, motorcycles and trucks to the UK automotive industry every day. Founded in 1979 and based in Leeds (UK), CAP’s data and information systems serve clients across a broad variety of automotive-related sectors. CAP’s current used car values are used as the benchmark for residual values performance across the disposals industry and CAP Monitor is the leading residual values forecasting tool for the Contract Hire, Leasing, Daily Rental, Finance and Insurance industries. CAP’s new vehicle data system serves a broad variety of e-commerce, DMS, showrooms and asset management systems throughout the Retail, Contract Hire, Leasing, Finance and e-commerce sectors. CAP information also operates at the heart of many leading vehicle marketing websites and car sales portals, including Britain’s largest – AutoTrader – helping consumers safely make the best informed decisions about their purchase choices.
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Telephone: 0113 222 2000 Facsimile: 0113 222 2001 www.cap.co.uk