BHPH car dealers are learning that, with used cars as well as everything else, looks matter. That is especially true where resale values are concerned, and I’m not just talking about a clean used vehicle, free from dents and scratches. While there are certainly other factors involved, (see our article about the Used Cars Value Conscious Consumers Want,) it turns out that the color of a used car can play a surprisingly big part in it’s resale value, and the most advantageous colors differ from what you’d expect.
The most popular colors at new car dealers are neutrals—white, black, various shades of grey—so it follows logically that the same should be true of used cars as well. Nope. It turns out that BHPH and used auto dealers see a different pattern altogether. According to a study by Boston-based iSeeCars.com, customers buying a used car from a dealer may pay more for a brightly colored vehicle.
That’s right. Brightly-colored used cars have the potential bring BHPH auto dealers more money. In fact, the used car color that increases resale values most, iSeeCars.com stated, is bright yellow, which showed an average resale increase of 18.5 percent. Other high-value used car colors are similarly bright, including orange, green, and red. (Orange and green, in fact, both raise resale values around 7 percent.)
That isn’t to say that all flashy-colored used cars have high resale values. BHPH car dealers may want to avoid gold cars, which were shown to have a resale value of about 12 percent less than normal. Surprisingly, given the apparent popularity of colorful used cars, BHPH auto dealers will find that purple does not sell well, with resale values averaging 10.7 percent lower than usual. Meanwhile the same neutral colors that prevail on new car dealer lots carry resale values that are simply lackluster, with depreciation occurring at textbook rates.
So, as BHPH auto dealers consider stock and trades, it may be wise to consider colors as well as mechanical conditions and clean car bodies. That canary yellow Honda Fit or lime green Ford Mustang might just sell for more than you think.
Source: NWI Times