What is the Blue Book?
The Blue Book, also known as Kelley Blue Book, is a valuable source for information that offers a compiled guide and quotes prices for new and used automobiles as well as other vehicles of all makes, models, and types. The book was first published in 1926 by Los Angeles car dealer Les Kelley, it was originally only available to those in the automotive industry, but both a consumer edition and an online edition was made available in the 1990s for the general public. It does offers a fair market range which reflects an estimated range of prices car buyers will pay for a specific car depending on the make, model, style, as well as year. This book is quite popular and trusted for automotive price quotes in North America.
Understanding the Blue Book
Over the years, It has evolved to become the premier appraisal guide for vehicle price quotes in North America. With it car sellers and car buyers consult and determine the resale value of used cars. Auto insurance companies on the other hand. Frequently consult Blue Books as a standard for assessing the market. Value of a car that has been involved in a collision in order to. Determine if it’s worthwhile to fix the car or whether it should. Be has written off as a complete loss.
It analyzes the private party value, trade-in value. The suggested retail value, as well as a certified pre-owned (CPO) value for used cars. The new car, on the other hand. Shows what consumers are currently paying for new cars.
How Are Blue Books Used
Blue Books displays what buyers and sellers of automobiles. What prices others have paid, the fair price purchase price in acquiring. Vehicles of the same make, model, year, and. Comparable mileage and usability. Additionally, Blue Books can detail the anticipated costs. Linked with a vehicle like fuel, maintenance, repairs, insurance, and financing. Alongside the anticipated depreciation of its value over time. Thus, buyers can see the potential cost of owning the vehicle five years out from the date in which is needed.
How Does the Blue Book Determines Car Prices?
The Blue Book details the price – known as the fair purchase price that other consumers typically pay for the same vehicle. These prices are adjusted depending on the region where the transaction was carried out from new-vehicle purchases that occurs across the country. Now, these prices are adjusted on a recurring basis in order to account for changes in market conditions.
Understand that, the Blue Book does not display the lowest prices paid in the market for vehicles, instead, the going price that a vehicle currently sells for. The prices in the book are set by gathering data on tons of consumer vehicle purchase prices. Now, this is coupled with data collected from national vehicle registration databases. Kelley Blue Book reviews the aggregate information weekly. The company makes use of a proprietary algorithm in analyzing pricing data, historical trends, location, time of year, and economic conditions to come up with the value ranges it compiles in the Blue Book.