Are Kelley Blue Book Values Accurate and reliable is the question many people who want to buy or sell a used car and rely on the Kelley Blue Book (KBB) ask.
Usually, the values published by Kelleys Blue Book is based on a constant flow of pricing information from different industry sources. Thus, manufacturers, wholesale auctions, franchised. And independent dealers, rental companies, and financial institutions are. Amongst the data sources that are used in calculating new and used vehicle prices.
How Kelley Blue Book Values are Determined
Firstly, the Kelleys Blue Book Values determines the final used vehicle values via a proprietary editorial process. The values are presented on several scales, which creates a unique price for every situation. The Private Party Value represents the amount expected for a. Private sale of a vehicle as an individual seller. Trade-in Value on the other hand and Suggested Retail. Value prices are available for both sellers and buyers who are. Planning to interact with a dealer. The Kelleys Blue Book also calculates and offers values for. The suggested price of an automobile at automaker-affiliated Certified Pre-Owned dealerships.
Also, a Fair Purchase Price tool offers a snapshot of a. Vehicle’s actual selling price from tens of thousands of sale transactions. Quite different from the other car value tools used by Kelley Blue Book. Fair Purchase Price gets sourced directly from vehicle sales via market contacts. Kelley’s Blue Book’s Fair Purchase Price tool is compiled from transitions that are. Conducted across the United States.
Kelley’s Blue Book’s primary focus is mainly on automobiles. Even though the company also offers values for motorcycles. Personal watercraft, and snowmobiles.
Issues with Kelley Blue Book Pricing
Interestingly, it has been observed that some factors that could affect the. Accuracy of Kelley Blue Book values is the lag time. Consumer bias, and mismatched data.
Furthermore, some people are of the opinion that the car they are selling or. Trading in is in better condition than it really is. They believe that if you misjudged the condition of a car for trade-in or purchase. Your expectations may not match the reality of Kelley’s Blues Books valuation structure.
Most dealers prefer not to use Kelley Blue Book for trade-in (wholesale) values. Rather. They rely on National Auto Research’s Black Book or the Manheim Market Report, neither of which is available to the public. And most importantly, both of them tend to skew lower than. Kelley’s Blues Books in wholesale pricing.