Why the Kelley Blue Book Value Matters

As the second largest purchase most people will make in their lifetimes, purchasing a car is a big deal and is a process filled with pitfalls. However, there are several tools designed to help tip the scale in your favor, such as Edmunds purchasing tool. One of the most popular of those tools is the Kelley Blue Book. At one time, the term “Blue Book” was a used car sales professional’s inside term. Today, the Internet has made this wealthy book of knowledge and information accessible to everyone. Continue reading to learn more about common valuation tools and why the Kelley Blue Book value still matters today.

What Is the Kelley Blue Book?

Similar to Kleenex tissues, the brand name Kelley Blue Book has become the generic name for pricing vehicles. Over eight decades old, approximately one out of three people who purchase a used or new car in the U.S. use the Kelley Blue Book. Essentially, this handy guide collects information from various automotive auctions from around the nation. The KBB uses four different car evaluations for used vehicles: Excellent, Good, Fair, and Poor. From these three evaluations, KBB then determines wholesale values based on auction fees, transportation, and costs for reconditioning. As a result, the Kelley Blue Book value is important because it represents a standard pricing guide for thousands of dealerships across the nation. Whether you are purchasing or selling a vehicle, the KBB is one way to ensure you are getting the most bang for your buck.

Different KBB Valuation Tools

As a consumer selling or purchasing a vehicle, the best solution is the Kelley Blue Book. This tool will provide you with vital information on what you should expect and give you insight on when you are getting a good deal on a used vehicle. In any case, there are several different Kelley Blue Books you can use, such as:

• Kelley Blue Book Private Value lets you know what you should expect to pay when purchasing a used vehicle from a private individual.
• Kelley Blue Book Trade-In Value lets you know what you can expect to receive from a dealership if you trade a vehicle in.
• Kelley Blue Book Suggested Retail Value gives you insight on how much a dealership should be asking for a particular used vehicle. This guide can serve as the quintessential starting point for all negotiations between you and a dealership.
• Kelley Blue Book Certified Pre-Owned Value gives you insight on what a dealership should be asking for a vehicle covered under the manufacturer’s Certified Pre-Owned program.

What Is the Nada Guide?

As the most viable alternative to the KBB, the NADA guide has been in circulation for approximately 74 years. This book is designed to be strictly for dealers that are members of the acclaimed National Automobile Dealers Association (NADA) group. Members are privy to exclusive information, including retail sales data and data from over 500,000 points of sale. In most instances, NADA’s retail and wholesale prices are higher than the KBB. This higher price point may be attributed to the fact all NADA provide an evaluation based on the vehicle’s preset standard of very clean condition. As a result, most people have to adjust this value downward because most people’s vehicle isn’t in this condition.

What Is the Black Book?

Another common valuation book is the 52-year old Black Book. This books is exclusively used and restricted to financing sources and dealers. While the NADA and KBB provides data, the Black Book only provides links to dealers. At the same, the Black Book is issued every week to reflect the latest information and data, while KBB and NADA issues a monthly guide. Because the Black Book is only used by banks and dealers, it only provides Retail and Wholesale (Trade-In) numbers. The Black Book specializes in Wholesale value, which entails determining the value of Extra Clean, Clean, Average or Rough used cars.