Do car dealerships use Kelley Blue Book?

Mismatched data – 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.

How does Kelley Blue Book come up with their fair purchase price?

Fair Purchase Price is determined by collecting thousands of actual consumer vehicle purchase prices, plus data from national vehicle registration databases and several other reliable third-party sources. Kelley Blue Book’s lead analysts and statisticians review and validate the data each week for reliability.

What does Kelley Blue Book price mean?

The term “Blue Book Value” refers to the value of a vehicle by a guide known as the Kelley Blue Book. The guide not only lists the value of new vehicles, but it also lists used car values. Since the 1920s, the Kelley Blue Book has served as a standard within the auto industry in the United States.

What does Kelly Blue Book consider fair condition?

Fair condition means that the vehicle has some mechanical or cosmetic defects and needs servicing but is still in reasonable running condition. This vehicle has a clean Title History, the paint, body and/or interior need work performed by a professional. The tires may need to be replaced.

What is the Kelley Blue Book® Price Advisor?

The Kelley Blue Book® Price Advisor is a range-based pricing tool to help car buyers and sellers talk about price realistically. Research from the 2018 Cox Automotive Car Buying Journey Study showed that shoppers are looking for a fair price not only for new vehicles, but also for used vehicles and the vehicles they currently own.

How do used car dealers use Kelley Blue Book prices?

Car dealers use Kelley Blue Book used vehicle pricing information to set used car prices and values. In the world of used car sales, there are no preset values, so a dealer is free to use whatever sticker price it wants for a used car.

What are the problems with the Kelley Blue Book?

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.

What is the difference between Nada and Kelley Blue Book?

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.