Are the values of the Kelly Blue Book accurate and reliable
Many people rely on the Kelley Blue Book (KBB) when buying or selling used cars. This book has been around for more than 90 years. One of its popular signs is that about 20 million unique visitors visit the Kelly Blue Book website every month. Although automotive experts acknowledge that KBB is one of the most popular and trusted guidelines for car pricing, the question remains: Is it accurate and reliable? This is an assessment.
The Kelly Blue Book gets real used car prices every day from wholesale auctions, independent and franchisees, rental fleets, car manufacturers, lessors and private deals. Kelly's proprietary algorithms analyze pricing data as well as historical trends, current economic conditions, industry developments, time of year and location to determine the value of the Kelly Blue Book.
For used cars, the process produces the following values:
- Private party value – how much you need to pay for a particular used car from a private seller.
- Discount – the amount of discount you may receive from your dealer.
- Suggested retail value – Dealers usually require the purchase of a specific used car.
- Certified used car (CPO) value – the value of the car covered by the CPO program.
Some problems with KBB pricing
The following are factors that may affect the accuracy of KBB values:
- Lag – Data and analysis take time to pass kbb. The prices listed may not always reflect the latest trends and economic conditions.
- Consumer bias – Most people think that the cars they sell or trade are better than they actually are. If you misjudge the car's trading or buying conditions, your expectations may not match KBB's valuation structure.
- Mismatched data – Most resellers do not use KBB to exchange (wholesale) value. Instead, many rely on the National Automotive Research Corporation's Black Book or the Mannheim Market Report, neither of which is open to the public. More importantly, both tend to be lower than kbb in wholesale pricing.
Consumer-oriented solutions
Print out the definition. If you are negotiating with a private seller to buy a used car, please show the seller the definition of the car status of KBB, especially if you think the car is overpriced.
Negotiation. KBB's pricing structure tends to support dealers, which means that the listed retail price may be higher than other guidance. Start with the listed retail price and then bargain.
Ask the source. Please note that internal guides like Mannheim or Black Book often show lower wholesale prices than KBB. Ask about the source of the discount or wholesale price.
Refer to other guides. Consult one or more other websites or pricing guides to get the “average” of the vehicles you are trading, selling, or planning to buy.