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Here's why buying a yellow car might be a bright idea

Yellow cars have the lowest depreciation of any color, according to a study from iSeeCars. Demand for the color outstrips supply as it is the least common in the U.S.

Yellow cars are solid gold… in the used car market.

A new report from iSeeCars has determined which color vehicles hold their value the best, and the more colorful the better.

Well, usually.

The study looked at 1.3 million transactions of three-year-old cars and trucks sorted by color to determine their depreciation.

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Yellow vehicles lost just 13.5% of their value during the period, compared to an average of 22.5%.

It often tops the list, but not just because people like cheery bright cars.

It's actually the least common car color in the U.S., accounting for just 1% of sales, which makes it a rarity on the used car market.

"Yellow cars continue to represent the greatest disparity between how many are produced and how many people want one," iSeeCars executive analyst Karl Brauer said.

"While not many people want a yellow car, there are clearly more people who want one than exist, which is why yellow performs so well on the secondary market."

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The once-ubiquitous beige finished second on the list at 17.8%, which reflects its recent shift toward becoming a niche color.

It was followed by orange, green and red, while black, brown and actual gold were the three worst performers, the last of which saw an average depreciation of 25.9%.

"It’s interesting to see how color rankings change across vehicle segments, reflecting the shift in preference based on the type of vehicle someone is buying," Brauer said. "Even more interesting is the consistently low ranking of supposedly popular colors like black and silver."

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