When it comes to trade-in value for vehicles, most dealerships choose not to use KBB. In other words, the values that KBB produces may not always reflect the most recent trends and economic conditions. Unfortunately, however, when it comes to the most up-to-date information, there can be a slight lag time. Kelley Blue Book relies on historical data, as well as current changes in the car buying and selling markets to create their estimates. Unfortunately, if you misjudge the condition of the car you are trading-in or trying to sell, the value that KBB estimates may not match what you originally concluded yourself.
This is normally a result of some bias related to how, as the seller, we think the car is in better condition than it really is. When it comes to our beloved cars, we tend to over-price. However, there are just a few items that can affect the accuracy of the KBB values: The data they’ve collected, and the algorithm they utilize to produce estimates is vetted, and for the most part, very reliable. Over the years, KBB has become one of the leading sources in car buying and selling estimates. The algorithm is incredibly complex, and relies on key information in order to do its calculating:ĭespite being a very helpful resource, there are a few fall backs related to the estimates that KBB offers. KBB relies on a powerful algorithm to crunch the numbers, so you don’t have to. Certified pre-owned (CPO) value refers to the value for vehicles in the CPO program.Suggested retail price refers to the value most dealerships are paying.Trade-in value: this is the value of the vehicle when traded in with a dealership.Private party value: this is the value when sold to a private party or individual.How Are Kelley Blue Book Prices Calculated?ĭepending on your needs, Kelley Blue Book is able to create three different value types: KBB relies on a massive data bank that leverages sophisticated calculating technologies in order to create the most accurate price estimate possible. Nowadays, the KBB continues to be one of the most trusted sources in the used car market. In the subsequent decades, the Kelley fortune grew, subscriptions to the KBB soared, and the KBB became the leading source for car buying and selling information. At the time, it was a resource, created by Les Kelley, for the cars he wanted to buy and sell. The Kelley Blue Book was first published in 1926 and was actually a blue book. Keep on reading to learn about what makes KBB so accurate, and some other reliable sources for car prices. However, it is just one of multiple sources that folks use to help guide them in the car buying or selling process. Similarly, and if you’re on the selling side of things, deciding on a fair figure to sell your vehicle for can be equally troublesome.įor the most part, Kelley Blue Book (KBB) is one of the most accurate sources when it comes to prices for buying and selling used vehicles. When buying a car, searching for a car with the right price, and all the features you require can be difficult.
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