Negotiate - The name of the game is negotiation. In order to maximize KBB and circumvent some of its drawbacks, there are a few things you can do. Workarounds For CustomersĮven with these issues, Kelley Blue Book still serves as an extremely reliable source for vehicle valuation. They also skew lower than KBB more often than not when it comes to wholesale pricing. They utilize National Auto Research’s Black Book or the Manheim Market Report, neither of which is accessible by the public. Mismatched data is also an issue because the majority of dealers don’t use KBB for their wholesale trade-in values. This mindset causes a discrepancy between expectation of their car’s value and the reality of the KBB pricing. The average person believes that the car they are selling or trading in is in better condition and, therefore, worth more than it actually is. The prices listed, therefore, may not truly represent the latest economic environment or trends.Ĭonsumer bias also impacts the values presented. KBB’s accuracy is, first, affected by lag time when accumulating and analyzing data, it is not instantaneous. Now, while KBB’s platform is considered a trustworthy and reliable source by many, it does not come without its own share of issues. Suggested Retail Value - the asking price most dealers have for a specific used car.Ĭertified Pre-Owned (CPO) Value - dictates how much cars covered by the CPO program are worth. Trade-In Value - the amount you’ll probably get when you trade your car in to a dealer. Private-Party Value - the amount a buyer will have to pay a private seller for a particular used car. This results yield several different values for used cars: They receive actual used car prices from wholesale auctions, rental fleets, independent and franchised dealers, private party transactions, and lessors on a daily basis.Īfter amassing this pricing data, their proprietary algorithm analyzes it alongside historical trends, the current state of the economy, industry developments, the time of year, and location to zero in on the best value for Kelley Blue Book. In understanding how Kelley Blue Book determines the values on their platform we have to understand where they get their data from. How Kelley Blue Book Determines Their Values While Kelley Blue Book is acknowledged as a trustworthy guide for automotive pricing, can we be sure that they are accurate? Let’s take a dive down into how exactly Kelley Blue Book determines their prices. Kelley Blue Book has become the go-to platform for many people when trying to put a concrete number on their car’s value.
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