A recent study by iSeeCars reveals that brightly colored vehicles retain their value better than more common colors in the used car market. Analyzing over 1.3 million three-year-old car and truck transactions, the study found that yellow cars depreciated the least, losing only 13.5% of their value compared to the average 22.5% depreciation.

This strong performance is attributed to yellow's scarcity. Representing just 1% of car sales, yellow vehicles are less common on the used market, creating higher demand. iSeeCars Executive Analyst Karl Brauer notes that while yellow may not be a popular choice for new car buyers, the demand clearly outweighs the supply in the used market.

Following yellow, beige cars also held their value well, depreciating only 17.8%. This is likely due to beige's declining popularity as a new car color, making it less common in the used market. Orange, green, and red also performed well above average. Conversely, black, brown, and gold were the worst performers, with gold depreciating by 25.9%.

Brauer points out the interesting trend of color preferences varying across vehicle segments and the surprisingly poor performance of typically popular colors like black and silver. The study highlights the impact of color rarity on used car values, suggesting that less common colors can be a smart choice for buyers looking to minimize depreciation.