Kelley Blue Book Car Values - a Trusted Resource?
How Accurate are Kelley Blue Book® Car Values When Selling Your Car?
Car sellers often turn to Kelley Blue Book® to find out how much is my car worth. Kelley Blue Book or KBB is a respected used car price guide often quoted by used car dealers to demonstrate that prices of cars on their lots are fair. When it comes to realizing the Blue Book price when selling a used car outright, sellers often find their expectations are set too high.
When trading in your car for a new car, you'll usually be offered an attractive price for your car. Dealers use questioning techniques to find out whether you're more interested in a great trade-in price or are looking for a big discount on a new car and will tailor the deal to give you the perception of value. The most important factor for you as a buyer, however, is the cost to change. Attractive trade-in prices are usually subsidized by reducing the discount on your new car. The dealer is looking at the overall profit on the deal.
If you want to sell your car privately or get a bigger discount on your next car by avoiding the dealer's trade-in math, the Blue Book trade-in price may not be the best benchmark for you. Kelley Blue Books's trade-in price assumes you're buying another car and the dealer has some profit to play with. Selling privately, you're unlikely to get the Kelley Blue Book trade in price, but that doesn't mean you're getting a bad deal, simply a fair market price. A dealer paying Blue Book for a trade-in is either going to retail the car (more profit) or push it back through the auto auctions, often at a loss. How can a dealer pay Blue Book and afford to sell your trade-in at a loss? The answer's simple, the trade-in math favors the dealer.
For a fair value for your car, try the fast, safe and fair way to sell your car today at webuyanycar.com®. Need convincing that the KBB value may not be as accurate as you think? Check out KBB Instant Cash Offer. This is where KBB gives you a better idea of your car's true value which may be much lower if you're not trading in against a shiny new car with a very high profit margin. Remember, KBB makes money from selling leads (your personal information) to dealers.
Kelley Blue Book Used Pricing Guide
If you ask what your car is worth, you might think the answer would be a simple number — say, $10, But in reality, each vehicle has several values, depending upon who is selling and who is buying the vehicle. For example, if you plan to sell your car to an individual — a private party — you can expect to get more money for it than if you plan to trade it in to a dealer.
Why? Because the dealer will take the trade-in and turn around and sell it to another buyer hoping to make some money on that transaction. Private-party buyers generally don't plan to re-sell the cars they buy. Because of factors like these, each used vehicle has a trade-in value, a private party value, and a value that the dealer expects to get when the car is retailed to a new buyer. Vehicles also have an auction value, and new vehicles have a manufacturer's suggested retail price (MSRP) that is often the place where purchase negotiations begin.
It is valuable for all parties to have an independent, unbiased source of information for vehicle values because it aids the negotiation and buy-sell processes. Without established vehicle values, each price negotiation would be infinitely more complicated.
For almost a century, Kelley Blue Book is one of several "guide book" companies that have provided that information to those who need it — dealers, financial institutions, insurance companies, and, most recently, consumers. For the pricing information to be of use it must be accurate, if not "penny perfect," and it must be credible. All parties to each transaction must have respect for the information if they are going to rely on it as they negotiate and come to a deal.
Kelley Blue Book values are derived from massive amounts of data, including actual sales transactions and auction prices, which are analyzed and adjusted to account for seasonality and market trends. Because the auto market has significant regional differences, they are also adjusted to reflect local conditions in more than different geographic areas and are updated weekly to give consumers up-to-date used-car pricing information.
To gain all the data necessary, KBB uses several key data sources including wholesale auctions, independent dealers, franchised dealers, and private-party transactions. Traditionally, it has relied heavily on wholesale auctions because those auctions reflect information from key sources including consumers, dealers, financial institutions, rental fleets, and leasing companies.
Kelley Blue Book values are not precise. They are estimates, but they are estimates based on a well-established process, giant amounts of data, and generations of expertise in determining and, in some ways, establishing vehicle values. Kelley Blue Book calls it "a proprietary editorial process." It starts with a thorough analysis of all collected data, and it is informed and "leavened" with historical trends, current economic conditions, industry developments, seasonality, and location.
The values that result from the process, in KBB's words, "reflect the most current representation of a changing marketplace and are therefore relied upon by a variety of leading organizations as well as the average consumer." The overarching goal is to provide a credible guide in an ever-changing buying-and-selling environment that sees thousands of transactions each day.
Mounds of data are used to produce the values Kelley Blue Book quotes, and it is valuable to know what types of data are used in the process. First, there is market demand. Depending on the area in which the vehicle is being sold, relative demand has a major impact on the used vehicle's value. An individual used car sold in New York may be valued differently than the same used car sold in Iowa. A second criterion is the vehicle's condition.
The current state of a used vehicle has a major impact on its value. This, of course, is subject to personal opinion, which is why the values can only be used as a guide rather than being precise. Yet another criterion is the individual car's equipment level — a car with no extras and that same model car with a full array of high-tech and comfort features will have two different values. Finally, there are its age and mileage, which are a proxy for how heavily worn the vehicle is and how close it is to the end of its useful life.
Kelley Blue Book trade-in value is the amount you could expect to receive from the dealer if you traded it in as part of a transaction in which you buy or lease another vehicle. Keep in mind that this assumes an accurate appraisal of the vehicle. In real-world situations, both you and the dealer come to an agreement on the value of the vehicle you are trading in — in reality, selling to the dealer — and that happens at the conclusion of your negotiations with the dealer.
It is also important to note that the trade-in-value is very often less than you would receive if you sold the car yourself to a private individual, and it could be more than you'd get if you sold it outright to a dealer.
The Kelley Blue Book used private-party value is what you can expect to pay if you sold the car to an individual consumer. It is also an approximation of what you might expect to pay if you bought the used car from an independent seller. As with all Kelly Blue Book values, the private-party value is a guide. It can change depending on several factors.
If there is a warranty attached to the vehicle, the dealer's asking price is likely to be higher than the private-party value because warranty coverage has value. Should the vehicle be in excellent condition, that will drive up the price, because the value is predicated on a vehicle in less-than-excellent condition. It is interesting to note Kelley Blue Book estimates that only 3 percent of all used vehicles are in excellent condition.
The certified preowned value of a value is a used vehicle value that incorporates the fact that the vehicle is offered with a manufacturer-backed warranty rather than as-is, which is the way the typical used vehicle is sold. As we mentioned earlier, warranty coverage offers peace of mind that customers will pay extra for, so the CPO value is universally higher than the private party value.
Retail-oriented values like CPO value take into account dealers' profit, costs for advertising, sales commissions, and other costs of doing business. In the end, Kelley Blue Book used car pricing can serve as a good barometer for buying and selling a vehicle. When used in conjunction with your own independent research, it can ensure that you get a price that is fair.
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Black Book Vs Kelly Blue Book
Black Book Vs Kelly Blue Book Trade In Values
Is there a difference between Black Book Vs Kelley Blue Book trade in values? Are you looking to sell your vehicle or trade it in?
Keep reading to find out all about the 2 main sources for USED Car, Truck and other Vehicle pricing.
- Kelley Blue Book
- Black Book and more!!!
CAR DEALERS love to quote Blue Book this and Blue Book that, but what does it really mean?
You might hear things like
- Blue Book Pricing
- We sell below Blue Book
- Get Blue Book value for your trade-in
BLACK BOOK vs KELLY BLUE BOOK TRADE IN VALUES
BLACK BOOK – OVERVIEW
Black Book is what dealers usually refer to when trying to figure out how much a used vehicle or trade in is worth. Black Book originally began in literally as a black book containing weekly car values for every vehicle and every region in the country. Today Black Book (https://www.blackbook.com) is available via the web or mobile through a paid subscription.
Black Book offers various paid subscription options. The main subscription that Dealers use includes trade in values and information on cars and light trucks. These vehicle appraisals help dealers calculate vehicle leases and used car and truck prices.
- Four wholesale values based on condition: Extra Clean, Clean, Average and Rough
- History Adjusted Valuations – a more precise way to appraise vehicles. Instantly understand the impact of a vehicle’s history report on its value.
- Four retail values based on condition: Extra Clean, Clean, Average and Rough
- Three trade-in values based on condition: Clean, Average and Rough
- Finance Advance™ value
- Value adjustments for mileage and optional equipment
- Value adjustments for region or state
- Access auction sales data from over auctions with our Complete Market Report (separate subscription required)
- Over 32, used vehicle values for model years current.
- Pull up to 1, valuations per month.
Black book offers subscriptions in both print and online and also via a mobile application. Mobile subscriptions start around $65 a month or over $ annually.
If you want to know what the dealers know when buying a used car, the Black Book mobile application is a great tool to use. Because they offer monthly memberships, it will not cost a ton to be really informed.
KELLEY BLUE BOOK – OVERVIEW
While Black Book is mostly used by dealers, Kelley Blue Book (Not spelled Kelly Blue Book without the “e”) is mostly used by individuals looking to trade in or sell their vehicles. Since , Kelley Blue Book has been one of the best-known names in the auto industry. Today, https://KBB.com or https://kelleybluebook.com extends the tradition, with trusted values and a reputation for innovation, including resources to help you research, price and shop for the car you’ve been looking for.
One advantage of using Kelly Blue Book is the service is free without monthly subscriptions.
Kelly Blue Book rates its used car evaluations as
Kelley Blue Book breaks it’s pricing guides into 2 main categories which include the KBB New Car Guide and KBB Used Car Guide.
If you are in the market for a new vehicle, the KBB New Car Guide contains pricing information for the current model year including
- MSRP (Manufacturer’s Suggested Retail Price)
- Dealer Costs
- Extra Costs – includes other various costs (Example shipping costs)
- Pricing Schedules – includes pricing for various options that buyers can select
If you are in the market for a used vehicle, the KBB Used Car Guide contains pricing information for used vehicles made in the last 15 years. The Used Car Guide offers several different prices:
- Retail Price – also known as the dealer price or what you could expect to pay at a dealer.
- Trade-In Price – also known as the dealer trade-in value
- Private Sale Price – Is the price for selling by owner. The Private Sale Price is almost always lower than the Trade-In Price and is a good estimate of what to expect to pay for or sell a used vehicle from a non-dealer.
The Used Car Guild includes various charts and tables for calculating price based on
- Vehicle Condition
- Car Mileage
- Vehicle Options
If you are looking to buy or sell an older vehicle, motorcycle or RV, that information is published separately and may only be available in guidebooks and not via the KBB website.
Historically Kelley Blue Book gathered vehicle cost data information through vehicle auctions, which often can inflate the price compared to how Black Book calculates their trade in and used vehicle prices.
NATIONAL APPRAISAL GUIDES
Beyond both Black Book and Kelly Blue Book, another useful tool for figuring out vehicle price is NADA (http://www.nadaguides.com). National Appraisal Guides, Inc. is the largest publisher of vehicle pricing, information and tools for new and used cars.
BLUE BOOK VS BLACK BOOK | BEST ADVISE
As a rule of thumb Kelley Blue Book values are a pretty good indicator to use when buying vehicle from an individual or when selling a vehicle to an individual. The Blue Book values tend to be a little on the high side when buying used vehicles from a dealership or when trading in a vehicle.
Best advice is to do your homework and don’t go into a buying or selling situation blind.
If you happen to be in the Wyoming or Nebraska neighborhood, check out out Fremont Motors for loads of new and used cars, truck and SUVs.
KELLEY BLUE BOOK Vs BLACK BOOK | FAQ
What Are Black Book Car Values?
Black Book Vehicle Pricing. The Black Book is what dealerships typically use to lookup pricing information about new, used car, truck, and recreational vehicle prices. Black Book updates the Dealer invoice and Manufacturers Suggested Retail Prices (MSRP) weekly. Dealers also use the Black Book loan values for finance purposes.
Black Book publishes weekly publications in print and online is still going strong today.
What Is The Difference Between Black Book and Kelley Blue Book?
As stated above, the Black Book is what dealers usually refer to when trying to figure out how much a used vehicle or trade in is worth. Consumers will typically use Kelley Blue Book values when estimating new and use vehicle costs.
Is Edmunds Or KBB More Accurate?
In realistic terms both Kelley Blue Book (KBB) and Edmunds give an approximation of vehicle value based on various sources. Both the Kelley Blue Book and Black Book are generally used when buying a car from a dealership.
What Is The Value Of My Car In Kelley Blue Book?
The Kelley Blue Book is a good estimation of what a car might sell for and how much it is worth. The price doesn’t include warranties and other options that may increase the a cars value. Ultimately the KBB value is often used as a starting point for negotiation and not the final price.
What Does The Black Book Value Mean?
You can think of the Black Book values as an estimated wholesale value of a vehicle that dealers use to ensure profits when buying or selling used cars. From a consumer standpoint, a dealer will always look to make a profit, so you can expect to pay over the Black Book value when buying used and under the Black Book value when trading in or selling your vehicle to a dealer.
Are Kelley Blue Book Values Accurate and Reliable?
When buying or selling a used car, many people rely on the Kelley Blue Book (KBB), which has been around since One sign of its popularity: Roughly 20 million unique visitors per month log on to the Kelley Blue Book website.
Although automotive experts acknowledge that the Kelley Blue Book is one of the most popular and trusted guides in automotive pricing, the question remains: Is it accurate and reliable? Here’s a look at how Kelley determines car pricing, an assessment of some issues consumers might encounter with KBB pricing, and a brief review of some of the top competitors in the industry.
- The Kelley Blue Book—and its equally popular website—is one of the most trusted guides for automobile pricing, used by those who are buying or selling cars.
- Kelley assesses the following values: private party value, trade-in value, suggested retail value, and certified pre-owned (CPO) value.
- Kelley determines Blue Book values by analyzing pricing information from real-world used car prices, as well as industry developments, economic conditions, and location.
- Potential problems with Blue Book values include a delay as price information is assessed, the consumer tendency to overrate the value of the car they are selling or trading in, and a mismatch between wholesale values listed by Kelley and the prices used by dealers, who access special industry-only pricing info.
How Kelley Blue Book Determines Car Values
Kelley Blue Book receives real-world used car prices on a daily basis from wholesale auctions, independent and franchised dealers, rental fleets, auto manufacturers, lessors, and private party transactions.
Kelley’s proprietary algorithm analyzes pricing data along with historical trends, current economic conditions, industry developments, time of year, and location to determine Kelley Blue Book values.
That process results in the following values for used cars:
- Private-party value refers to how much you will have to pay for a specific used car from a private seller.
- Trade-in value is the amount you are likely to get from a dealer for a trade-in.
- Suggested retail value refers to what dealers are typically asking for a specific used car.
- Certified pre-owned (CPO) value tells us how much cars covered by the CPO program are worth.
Some Issues With KBB Pricing
Some factors that could affect the accuracy of KBB values are lag time, consumer bias, and mismatched data.
It takes time for data and analysis to make its way through KBB. Prices listed may not always reflect the very latest trends and economic conditions.
Most people think the car they are selling or trading in is in better condition than it really is. If you misjudge the condition of a car for trade-in or purchase, your expectations may not match the reality of KBB’s valuation structure.
Most dealers do not use KBB for trade-in (wholesale) values. Instead, many rely on National Auto Research’s Black Book or the Manheim Market Report, neither of which is available to the public. More important, both tend to skew lower than KBB in wholesale pricing.
The year Les Kelley, a Los Angeles car dealer, published the first Kelley Blue Book.
Solutions for Consumers
If you use KBB as a general guide and follow the suggestions below, Kelley Blue Book data can be very useful.
Print out Definitions
If negotiating to buy a used car from a private seller, show KBB’s car condition definitions to the seller, especially if you believe the car is priced too high.
KBB’s pricing structure tends to favor dealers, meaning listed retail prices can be higher than other guides. Start with the listed retail price and bargain down.
Ask for Sources
Be aware that insider guides like Manheim or Black Book tend to show lower wholesale prices than KBB. Ask about the source of the trade-in offer or wholesale price.
Consult Other Guides
Consult one or more other websites or pricing guides to get an “average” for the vehicle you are trading in, selling, or planning to buy.
Since the three main consumer guides—KBB, Edmunds.com, and NADA—use different algorithms, your best bet is to check all three and calculate an average price.
The following are several sources you can check for pricing and rating information before buying, trading in, or selling a used car.
Edmunds:This website offers an appraisal engine that includes five car condition categories compared with KBB’s four. This can be helpful—or generate confusion—depending on how realistic you are about your car’s condition. Many experts believe Edmunds' values are more accurate than KBB's. That’s not always the case, of course, which is why getting several estimates and averaging still makes the most sense.
NADA Guides: One of the oldest guides, NADA guides were designed for dealer members of the National Automobile Dealers Association (NADA) trade group. NADA pricing is often higher than Kelley Blue Book since the algorithm has a standard that calls for all trade-ins to be in very clean condition. As a result, you may need to adjust NADA prices down.
J.D. Power: Although the ratings are only for new cars, the used car search provides dealer pricing based on ZIP code. This information could be valuable if you are planning to sell a car outright and want to know what typical pricing in your area looks like.
Consumer Reports: The well-respected, noncommercial (no advertising accepted) publication offers lots of information if you buy an online subscription, less if you don’t. The website features general pricing on used cars, information on reliability, cars to avoid, and much more.
The Bottom Line
Kelley Blue Book is a very good resource, but it should not be the only one you consult. Although none of the top used car buying guides is perfect, when taken together—along with additional information gained from other websites and tools, such as auto loan calculators—they can provide reasonably reliable and accurate information for your used car transaction.
Pricing kelley blue book
What Is The “Kelley Blue Book” Price?
Buying a vehicle can be a complicated and involved process, not the least of which is making sure that you don’t pay more for the vehicle than necessary. You want to get it for the best price possible, but how do you do that?
The Kelley Blue Book price is one method consumers can use to determine a fair purchase price. But what, exactly, is the Kelley Blue Book price?
According to Kelley Blue Book, for new vehicles, this is the Kelley Blue Book Fair Purchase Price, which is “the price people are typically paying a dealer for a new car. This price is based on actual new-car transactions and adjusted regularly as market conditions change.”
You find the Kelley Blue Book price by going to their website, www.kbb.com and plugging in the year, make, model and other details of the vehicle you’re looking to buy, such as engine, transmission, features and options. After inputting all the data, the site returns the estimated fair purchase price – the price that dealers have actually been selling the vehicle for in the area.
What if the vehicle you’re in the market for doesn’t have a Kelley Blue Book price when you do the lookup? Here’s what Kelley Blue Book says: “Since the Fair Purchase Price is based on actual transactions, some vehicles are too new to establish a history, others have low current dealer inventory, and still others have low sales volume overall.” KBB promises to publish a Fair Purchase Price as soon as there are enough actual transactions for the calculation.
Note that the Kelley Blue Book price is not the same as the dealer asking price. Dealers have a version of Kelley Blue Book that they use that shows the Kelley Blue Book asking price – the price dealers typically ask for when selling the vehicle.
As a consumer, arm yourself with the best information possible on the new vehicle you want to buy. You never want to pay the manufacturer’s suggested retail price (MSRP), what the manufacturer recommends the dealer sell the car for. Dealer invoice is the price the dealer pays the manufacturer for the car, not what he’ll try to sell it to you for. Where you want to be is the Fair Purchase Price – which is less than MSRP and may be less than dealer invoice.
Maybe a used vehicle is more in line with your budget. Here, Kelley Blue Book has a tool to help you find used-car values that can give you a better idea what you can expect to pay.
Input the year, make and model of the used car you’re interested in. Add any features or options you want. The search returns three prices: dealer, private party and certified pre-owned trade-in values.
Private party is the amount a consumer can expect to pay when buying a used vehicle from a private party.
Suggested retail (dealer price) is a value that is representative of dealers’ asking prices for a used car. This is a starting point for negotiations between the consumer and the dealer.
Certified Pre-Owned is the value that is representative of dealers’ asking prices for a used car covered by the automaker’s CPO program. Again, this is a starting point for consumer-dealer negotiation.
If you are selling a used vehicle, after inputting year, make, model, mileage, style, features and options, the applicable Kelley Blue Book tool returns private-party and trade-in value.
The private-party value is what you can ask for your vehicle when you sell it yourself. The values returned are for excellent, very good, good and fair condition. According to KBB, 3 percent of used cars are in excellent condition, 23 percent in very good, 50 percent in good, and 18 percent in fair condition.
The trade-in value is what you can expect to get from the dealer when you opt for this method of selling your car. Again, the values returned are for vehicles in excellent, very good, good and fair condition and the same percentages of used cars in such condition apply.
Bottom line: buying or selling a vehicle can be a lot easier if you check out Kelley Blue Book prices before you get too far into the deal.
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How Kelley Blue Book Works
Since its humble beginnings 75 years ago, the Kelley company has worked to bring value information for cars, recreational vehicles and motorcycles to buyers and sellers. Its Kelley Blue Book has become the standard automotive price guide for dealers and consumers alike. Now Kelley is using the Internet to make that information even more readily available. In this article, we'll explore Kelley's history, show you how to use its price guides and Web site, and explain where it gets pricing information.
Les Kelley never intended to start a publishing company. He began in by selling used cars, starting with three Model T Fords in a Los Angeles parking lot. With the help of his younger brother, Buster, Kelley turned his small lot into a thriving used car sales and repair business within a few years. Kelley began printing lists of used cars that he wanted to buy, including how much he would pay for them. He sent these lists to other dealers and banks. Before long, Kelley's lists were on the desk of every sales manager in the county and people came to rely on them for accurate appraisals of an old car's value. In , Kelley published his list in book form for the first time. He named it after the Social Register, a list of the important and elite people in local society often referred to as the Blue Book.
The Kelley dealership continued to expand until it was the largest used car dealer in the country. The Blue Book increased in popularity as well, moving beyond its regional boundaries and becoming a nationwide car value guide for dealers. In , the Kelley family sold off their dealerships and focused entirely on the Blue Book.
In the s and 90s, Kelley started using computer software to track prices. In , it offered dealers a computer program that allowed them to print out a label displaying the condition, mileage, and optional equipment on a used car. The label also included the Blue Book price and the Kelley Blue Book official seal. In , the Blue Book was finally released as a consumer guide. The last major change in publication format came in , when www.kbb.com was created.
Kelley Blue Book stayed in the Kelley family for three generations until That year, Bob Kelley (Buster's son) and his son Mike retired from the company, leaving it in the hands of new leaders who kept the famous name and worked hard to maintain the tradition of trustworthy and accurate information. Today Kelley employs around people and has offices in Irvine, California and Detroit, Michigan.
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Kelley Blue Book
Vehicle valuation and automotive research company
Kelley Blue Book is an Irvine, California-based vehicle valuation and automotive research company that is recognized by both consumers and the automotive industry. The company is owned by the Cox Automotive subsidiary of Cox Enterprises.
The company began as the Kelley Kar Company founded by Les Kelley in  Kelley started the company with three Model T Fords. His younger brother, Buster, worked with Kelley as a lot boy. By using data collected from the dealership, Kelley published the company’s first Blue Book in , which became a standard guide in automotive trade in determining car value. Kelley Blue Book was formed in , and the Kelley family continued its dealership business in Southern California for several decades. By the s, the company moved from a car dealership to a specialty publisher and focused on the production of its automobile price guide. Kelley Blue Book guide became the first publication to use mileage to determine a car's value.
In , Kelley Blue Book created its company website, which contained tips and pricing information from its hardcopy guide.
In December , Kelley Blue Book was purchased by AutoTrader.com. After its acquisition, the company operated as a subsidiary of AutoTrader.com, Inc.
In , the company formed an alliance with Bitauto Holdings Ltd. to expand into China.
In , Kelley Blue Book signed a two-year agreement with Hendrick Motorsports to be a primary sponsor of Dale Earnhardt Jr.'s No. 88 Chevrolet SSNASCAR Sprint Cup Series team.
The company reports market value prices for new and used automobiles of all types, as well as motorcycles, snowmobiles and personal watercraft. For both new and used automobiles, Kelley Blue Book provides a fair market range and fair purchase price, based on actual transactions of what others are paying for a vehicle and adjusted regularly as market conditions change. For new automobiles, Kelley Blue Book also provides information about a car's MSRP and dealer invoice price. For used cars, Kelley Blue Book provides typical listing price, certified pre-owned price, trade-in value and private party value. Kelley Blue Book also offers expert and consumer vehicle reviews and ratings, and 5-year cost to own information for new cars.
In , Harris Poll recognized Kelley Blue Book as the Online Auto Shopping Brand of the Year. In addition, the company received a WebAward in the automotive category of Outstanding Website for two consecutive years.
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