Kelley blue book how does it compare to market value. How does an insurance company decide on the value of a. The problem with how dealers value tradeins is the built in costs of the dealership. I also want to be sure it will get through the service department without any major repairs. Oct 02, 2011 most dealers use black book which is based on auction sales. Keep in mind that this should serve as a starting point for negotiations and is no way representative of the final amount you should pay.
Oct 07, 20 the majority of tradeins will come in well below kelley blue book value. The dealer calculates the price it wants to pay for a used car using the wholesale value numbers from the dealer version of the blue book. This tool will estimate the tradein value and privateparty sale value including price and the average amount of. The reasoning comes down to an old school theory of trying to draw a new customer in to showroom by all means and make the sale. Ill offer 1k less than the private party value unless the vehicle is in absolute immaculate condition with all documented maintenance records. And other than paying a visit to the local library, carbuying consumers did not have. Although, there are many misconceptions about the guide that create confusion among consumers. If you plan to sell your car yourself, youll want to also research the kelley blue book private party value, which is typically higher than tradein value. Regardless, we recommend using the tradein and retail pricing found on nadaguides. Since 1942, the blue book has been the annual reference used by u. It, along with kelley blue book and national automotive dealers association, track new and used car purchases to. It is no secret that some vehicles are more popular than others.
This is the book most people refer to not realizing there are many other used car value books in the industry. However, the kelley blue book website notes that well over half of tradeins are in an upsidedown position. Privateparty value how much you will have to pay for a specific used car from a private seller. Nada blue book values for used cars, certified preowned cars and more, brought to you by the national automobile dealers association. Apr 15, 2020 find used car trade in, resell, certified preowned and retail values of used vehicles based on the condition, mileage and other factors of the car sale. He immediately knows you havent done your homework and will be easy prey.
The blue book is a great tool for consumers and dealers alike, and helps people buy used cars at fair prices every day. Since 1926, new and used car buyers and sellers have relied upon kelley blue book for authoritative and unbiased information to make well. When buying used from a private party i wont even pay blue book value. How to trade a car when you owe more than book value. To price the value of your car, insurance companies often use estimates prescribed in valuation guides such as the kelley blue book and the national automobile dealers association, or they might have their own formulas. Many of us just want to offload our old cars as quickly as possible and the surefire way to do. How can a dealer pay blue book and afford to sell your tradein at a loss. Most people essentially have two options, either they can sell their car privately or they can trade it in to the dealership. How do i know if the dealer is offering fair value for my.
How to quickly figure out what a dealer will pay for your. Car dealers use kelley blue book used vehicle pricing information to. Why used car tradein prices dont match your expectations. It gives you an idea of the asking prices you might see on dealer s lot. Kelley publishes more than one price guide for used cars, but.
The fair market range and fair purchase price are based on massive amounts of data, including actual. Most hard cover books published since the early 20th century were sold with a dust jacket. Mar, 2017 the blue book is a great tool for consumers and dealers alike, and helps people buy used cars at fair prices every day. Did you get the kelly blue book value on your tradein.
Kelly blue book will buy your customers tradein, just not at the value. The dust jacket is both the most decorative part of a book, and the most delicate. In 1992, it offered dealers a computer program that allowed them to print out a label displaying the condition, mileage, and optional equipment on a used car. Find the tradein value of your preowned vehicle here today. It is very unlikely that a dealer will ever offer the full kelley blue book trade in value price. Can i realistically get the kelley blue book price. This tool will estimate the tradein value and privateparty sale value including price and the average amount of time it will take to sell. Jun, 2012 in any of those ads you will always see a disclaimer. Car buyers are drawn to specific brands and models because of fuel efficiency, resale value, engine power, comfort, and convenience.
It is always possible to trade a car on which you owe more than its blue book value. Do dealers use the kelley blue book value when your. Bring a print out of kelley blue books value on your car as backup wherever you go. Why do dealers ask for more than the kelley blue book retail.
Will a dealer ever pay full kelley blue book trade in value. Kelley blue book prices tend to be a bit overinflated and a dealer needs to be able to make money on the vehicle when they resell it. The source is so trusted by consumers, an auto dealer who prices his vehicles outside of the blue books. If you live near a carmax, they will appraise your car for free and give you a much more honest answer. Black book values focuses on data points that can help lenders and dealers better identify vehicles with lower risks and higher potential profitability. Jun 03, 2007 if you are willing to walk out on a dealer who is going to try to short you on the blue book value, they might break down and give you blue book on your trade. Their pricing and value data includes statistical analysis that allows for current and timesensitive changes in historical valuation to be easily understood resulting in reliable predictors of values and potential risks. Kelley blue book or kbb is a respected used car price guide often quoted by used car dealers to demonstrate that prices of cars on their lots are fair. A financial exchange whereby each party feels like they totally screwed the other kelley blue book is an excellent resource to ballpark the current value of a vehicle. Kelley blue book is a popular evaluation guide for consumers and dealerships. Consumer reports helps you determine your cars retail or wholesale value, so you. Dec 17, 20 the first payment that will change the listed dealer invoice price is the dealer incentive. However, how much dealerships pay for used cars varies depending on various factors.
That way, if the car needs a few hundred dollars in repairs or reconditioning, you can subtract that amount from the price youd be willing to pay. Shoppers and sellers often refer to a cars blue book value without explaining which book they are referring to. Will a dealer ever pay full kelley blue book trade in. There are a few circumstances where a dealer would offer close to the kbb value. They might also check with dealers in your geographical area to gauge the price of a car equivalent to the one you lost.
In any of those ads you will always see a disclaimer. From the online blue book data, the estimated tradein value will be pretty close to what the dealer should have paid for a car that is on the lot and for sale. The majority of tradeins will come in well below kelley blue book value. You should encounter a dealer willing to pay true wholesale value along the way. A lot of people do not understand exactly how dealerships use the blue book, so we put this guide together to help you understand how car dealerships use the blue book value of a car. Dec 12, 2019 to price the value of your car, insurance companies often use estimates prescribed in valuation guides such as the kelley blue book and the national automobile dealers association, or they might have their own formulas. Dealerships seldom go by the kbb trade in value kelley blue book for. The kelley blue book has grown into one of the more reliable resources for consumers looking to price an automobile away from the dealership. It, along with kelley blue book and national automotive dealers association, track new and used car purchases to provide granular pricing information. Black book used car values kelly black book nadaguides. The kelley blue book used car value is used on sites like autotrader. Jun 30, 2019 that way, if the car needs a few hundred dollars in repairs or reconditioning, you can subtract that amount from the price youd be willing to pay.
Real car values are not free, they cost money and dealers pay for real prices as opposed to the free estimates floating around the web. Car dealers use the kelley blue book to set their retail prices. Kelley blue book does give you a general idea of what you can expect for your vehicle on. I know from experience with them in the past that if i say the blue book value is x, they say, well you should go sell it yourself, because we wont give you anything. Kelley blue book fair market range used car the fair market range for used cars is kelley blue books estimate of what a consumer can reasonably expect to pay this week in their area for this year, make and model used vehicle with typical miles and configured with their selected options, excluding taxes, title and fees, when buying from a dealer. Paying over blue book value for a private party used car. Havent visited the dealer yet just using the tools on their web site.
Most dealers do not use kbb for tradein wholesale values. The label also included the blue book price and the kelley blue book official seal. You can enter information about the vehicle including the style, model year, options, color, and condition for a personalized kelley blue book value. This is what the car dealership paid for the vehicle. How accurate are kelley blue book car values when selling your car.
Kbb used car values, dealers used car cost, kelley blue book. Dealers can use both kelly blue book and nada values depending on their preference. At times, dealers do send vehicles they have taken in on trade to auctions and some dealers may refer to auction values because of this. Jun 25, 2019 edmunds is a good resource for auto shoppers.
How do car dealerships use kelley blue book kbb values. In the end, many aspects of buying a used car can be difficult, but thanks to kelley blue book and autotrader. The source is so trusted by consumers, an auto dealer who prices his vehicles outside of the blue book s suggested range may raise eyebrows and lose customers. Again, the way to defend against this is to shop your tradein to multiple dealers. The kelley blue book is the most popular usedcar buying guide. When a car dealer hears you say, whats the blue book value.
This is a cash payment provided directly to the dealer for a sale. The value that is representative of dealers asking prices for a used car. The first payment that will change the listed dealer invoice price is the dealer incentive. There are many reasons why used car tradein prices are so low and as a person who is looking to get good value, you need to understand all of them. A book that has significant damage is likely not worth much.
The kelley blue book used suggested retail value represents the average dealer asking price. It is by far the most used, of the four values, by. Likewise, coin collectors use it to find out what dealers will pay for their coins. All too often, however, the dealer will direct your attention to a printed price guide and often it will be the kelley blue book. Failure to do so may result in you charging or paying more than you. Car buyers are drawn to specific brands and models because of fuel efficiency, resale.
Should you sell your car yourself or accept kelley blue book. Usually, what i like to do is figure the kbb wholesale value and shoot for a 20% discount, knowing that i may pay up to the full wholesale book value if its a nice car that i feel will sell fast. Feb 28, 2020 the kelley blue book is the most popular usedcar buying guide. Car dealers do not use this value when determining trade in value, or at all for that matter. How much more than the blue book value can a dealership sell.
Find used car trade in, resell, certified preowned and retail values of used vehicles based on the condition, mileage and other factors of the car sale. For new car shoppers, the kelley blue book fair market range and fair purchase price go beyond widely available new car prices like msrp and dealer invoice to show you what you can expect to pay for a new car in your area this week. Kelly blue book, nada, private seller or black book which is the true used car value. Itll show you what you can reasonably expect to pay this week in your area for a used vehicle with the options and mileage you want. The private party blue book value is available for free on wholesale value the wholesale blue book value is deemed by kelley to be the used car invoice and to some degree thats true. Over 80 years old and commonly misspelled kelly blue book. Nov 03, 2010 the kelley blue book has grown into one of the more reliable resources for consumers looking to price an automobile away from the dealership. When it comes to realizing the blue book price when selling a used car outright, sellers often find their expectations are set too high. Bring a print out of kelley blue book s value on your car as backup wherever you go. Most dealers use black book which is based on auction sales. Used car values, price guide and tradein estimator.
With other car evaluation companies like edmunds, nada, and black book which often lists lower prices than kbb, it will be hard to convince someone to pay that muchespecially if you. Because kbb is a trusted source in determining usedcar values, various dealerships around the country have partnered. Do dealers use the kelley blue book value when your trading. What i would do is print out the actual value for that car and have it in hand when you go meet with the seller. One of the best car tradein tips anyone can give you is to consider many different dealers when going through with your auto tradein. Traditionally dealers have relied upon black book for determining how much they should pay for tradeins. They also have the data available on computer for a fee.
If the car was a very popular model or in short supply, a dealer would offer a better trade in price. With other car evaluation companies like edmunds, nada, and black book which often lists lower prices than kbb, it will be hard to convince someone to pay that muchespecially if you cannot accurately judge car quality and market pricing yourself. Since 1926, new and used car buyers and sellers have relied upon kelley blue book for authoritative and unbiased information to make wellinformed car, truck and suv buying decisions. In 1993, the blue book was finally released as a consumer guide. The blue book is the vehicle information resource used by consumers and the automobile industry to establish price guidelines. If you are willing to walk out on a dealer who is going to try to short you on the blue book value, they might break down and give you blue book on your trade. Mar 31, 2015 when buying used from a private party i wont even pay blue book value. Oct 15, 2019 however, how much dealerships pay for used cars varies depending on various factors. Getting rid of your old car is one of the oft forgotten pain points of buying a new car. Used car trade in value how a dealer figures trade values.
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