Is it really though? Logic would dictate that while the market for a non-neutral color might be smaller, supply would also be smaller which should cancel the demand side out.

Anecdotally, and this might be a poor example because it's an enthusiast car and not something that most people are going to be encountering, I was looking at used Porsche Boxsters earlier this year, and the more interesting colors actually commanded a premium over silver or black cars because they're much harder to find. I do wonder how that translates to something more practical, but I have a hard time believing that it would negatively impact resale value to a huge extent.

> interesting colors actually commanded a premium over silver or black cars

Because someone paid more for that in the first place.

Every dealer is going to have a white, black, and silver/grey at 'stock' cost. After that the price goes up.

People by a car in a color because they like that color and are willing to pay more for it. People buy a car in a neutral because they want a car and don't care about the color.

You make a really good point, and while the color-price discrepancy remained true in my story for the 'stock' cost yellow and red vs. neutrals, my sample size is 1 model of car so it's hard to say how true that stays across the board.

> Is it really though? Logic would dictate that while the market for a non-neutral color might be smaller, supply would also be smaller which should cancel the demand side out.

Logic would dictate that the smaller markets will be less liquid and have wider spreads.

Another good point. Might be fine for a private seller but I could see how it would be difficult for dealers.

Yes. I worked in asset backed finance on decision systems, and that was a rule. Neutral, meaning black, grey, silver white, while not always the first choice for second hand buyers is much less of a dealbreaker than a 'wrong' color.

Commonly repeated non-sense. You can check on Autotrader yourself. There is no effect AT ALL between colors and neutral colors might actually sell for less then flashy colored cars overall.