"Arriving at a meeting of the minds on the price of a car isn't easy," said Eric Charles, a Chicago-area used-car dealer and master mechanic. "Every used car is different, and everyone has their own ideas on what each car is worth. That's why a third-party source like Kelley Blue Book is important." Show Kelley Blue Book has been an independent source of vehicle values since its founding in 1926. And the fact that it is an independent source of information is important. Because the
value Without an established, independent source of vehicle values, each used car price negotiation would be infinitely more complicated. For almost a century, Kelley Blue Book has The Product of ResearchKelley 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 over 100 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 they reflect information from key sources including consumers, dealers, financial institutions, rental fleets, and leasing companies. Result of Process
As former Kelley Blue Book President Paul Johnson once said, "One thing we know about each used car value is that it will be 'wrong,' but each value will be close enough to the The process starts with a thorough analysis of all collected
data, and it is informed and leavened with historical trends, current economic conditions, industry developments, 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 The overarching goal is to provide a credible guide in an ever-changing buying-and-selling environment
that sees thousands of transactions each day. Key Used-Car Valuation CriteriaImmense amounts of data are used to produce the values Kelley Blue Book quotes. First, there is market demand. Depending on the area in which a vehicle is being sold, relative demand 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 is mileage, which is a proxy for how heavily worn the vehicle is and how close it is to the end of its useful life. Used Cars Have Many ValuesIf you ask, “What is a particular used car worth?”, you might think the answer would be a simple number — say, $10,000. But in reality, each used car has several values. For example, if a used car is sold to an individual — a private party — the seller can usually expect to get more money for it than if that car were sold or traded in to a dealer. Why? Private-party buyers don't plan to resell the cars they buy, so they can afford to pay more for a vehicle than a used-car dealer can. The used-car dealer must buy at a low enough price that the business can make money when selling the car to a consumer after preparing it (at some expense) for sale. Because of factors like these, each used car has a "trade-in value," a "private party value," and a "retail value." Individual Used Car ValuesKelley Blue Book used-car trade-in value is the amount a consumer could expect to receive from the dealer if she or he traded it in as part of a transaction for the purchase or lease of The Kelley Blue Book used-car private party value is what a consumer can expect to pay if buying a used car from another consumer. As with all Kelly Blue Book values, the private party The certified pre-owned value of a used vehicle is also typically higher than the private party value. It incorporates the fact that the vehicle is offered with a warranty rather than as-is, which is the way the typical used vehicle is sold. Since warranty coverage offers peace of mind that customers are willing to pay extra for, the "CPO value" reflects that. Of course, no individual seller offers certified pre-owned used cars, so the CPO value takes into account the dealer's profit, cost of advertising, sales commissions, and other costs of doing business. In the end, the Kelley Blue Book Used-Car Pricing Guide can serve as a good barometer for the buying and selling of a vehicle.
When used in conjunction with other pricing research and "The goal of any used car pricing guide should be to reflect the current market conditions," Charles said. "In some instances, it can even predict market prices, but at the very least it should tell you what is right and fair at this time." How do you find the value of a used car?Kelley Blue Book, commonly abbreviated as KBB, is a leading online car value estimator. It uses details about your car, like the make, mileage, and color, to determine the value. If you're thinking about selling your car, KBB will give you an instant cash offer based on the vehicle's value.
How do I find the exact value of my car?Both Edmunds and Kelley Blue Book are reputable sites that offer pricing information. The accuracy of an appraisal has a lot to do with the information the owner provides. If you overstate the vehicle condition or don't check off the correct trim level and options, your value is less likely to be accurate.
What is blue book value?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 is the most accurate car value website?Since 1926, Kelley Blue Book has been one of the most trusted names in the auto industry. You might say we literally "wrote the book on car values". And today there's no better place to find the value of your current car than KBB.com.
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