How accurate is Kelly blue book car value? Do you believe your vehicle worth more than the book says? Why would people sell for below KBB car value?
This page reveals all the secret! Find out Why KBB is NOT at consumer’s best interest. And finally learn how to determine your car’s true value correctly.
If you have been on used car websites, you would have heard of Kelly Blue Book
or KBB - a popular pricing guide for both new cars and used cars. In the used car market, there are three values you should get familiar with:
- Vehicle Trade-In Value
- Private Party Value
- Suggested Retail Value
Trade-In Value - A value that car dealers offer you when a Used Car Appraisal is performed.
Sometimes you will see the term "Wholesale Value", which is the same as Trade-In Value. Many dealers will be happy to appraise your car and offer you a price to buy from you straight.
Private Party Value - If you are buying or selling your car to another private individual, this is the value you will get.
Suggested Retail Value - Also known as MSRP, Manufacture’s Suggested Retail Price. A dealer can choose to sell above or below MSRP, however most dealers will stick to MSRP or below to move inventory quick.
Let's say you own a year 2006 Toyota Camry LE 4 cylinder with 40,000 miles on the dash, under good vehicle condition and you live in the area of zip code 95117. This car's blue book trade-in value is $9,500 as of June 2009.
Kelly Blue Book Car Value
& Vehicle Condition ClassificationDifferent value guides use different terms to classify vehicle conditions. According to Kelly bluebook they use:
to determine the vehicle condition.
Excellent - According to Kelly blue book car value, less than 5% of all used vehicles fall into this category. If you own a used car in EXCELLENT condition.
The car should looks new, in great mechanical condition and needs no reconditioning. Well, in reality how many cars needs no reconditioning?
Even so, the trade-in vehicle is still subject to $150 safety inspection and a $200 detailing work to make it showroom condition.
The car NEVER had any paint or body work and is free of rust. Clean title history and will pass a smog and safety inspection.
The engine compartment is clean, with no fluid leaks and is free of any wear or visible defects. And of course you have complete and verifiable service records.
A good example of vehicles in such a condition will be one or two years old vehicle you owned since brand new. Still looks like brand new and needs nothing.
Good - Most of our vehicles fall into this category or below (fair condition, see the next one below). Good condition means the car is free of any major defects.
Has clean title history, the paints, body, and interior have only minor blemishes, with NO major mechanical problems. Tires match and have substantial tread wear left.
A "good" vehicle will need some reconditioning to be sold at retail.
Fair - Well this condition is less desirable but many cars on the road are in this kind of condition: the car has some mechanical or cosmetic defects and needs servicing but is still in reasonable running condition.
Clean title history, the paint, body and or interior need work done by professionals. I would say about 35% to 40% of the vehicles that I appraised are under this category.
The tires may need to be replaced new and there may be some rust damage on the vehicle body. Obviously, anything less than Fair condition will be rated as
Poor - You shouldn't be driving a car in such condition, it's not SAFE for you and also dangerous for other people on the road.
You have to look at your car objectively and be honest with yourself. Maybe you are in between Good and Excellent with Kelley blue book value, if that's the case do the proper price adjustment.
How Accurate is
Kelly Blue Book Car Value?
There is on going debate about the accuracy of Kelly bluebook. Many dealers DO use Kelly bluebook to appraise trade-in vehicles, because they are LOWER than the actual wholesale value.
In the State of California, Kelly blue book is treated as the "Bible" by car dealers. On the other hand, the retail value sees HIGHER than the actual value.
Get a Hard Copy
The printed copy price are different compare to online version! Get yourself a print copy of this book, use the blue book ONLY when you are selling the car to private party.
Show your customer the actual retail value written on the book, that way you get to keep all the money!
The book covers retail, private party and trade-in values for used cars, trucks, and vans covering the last 15 years.
It's a great book for research used vehicles. You can get the book from your local book store, some gas stations or
Amazon Books
In Conclusion...
KBB is a massively successful company in terms of marketing efforts and advertising. They have the ability to influence consumers to believe their pricing guide is accurate and up-to-date.
In reality, they are in favor of car dealers even though they never admit this is the case. Remember NEVER use Kelly blue book car value to trade-in your vehicle to a car dealer, you get lower than what the actual car's worth.
Instead refer your vehicles trade in value using Nada Used Car Values Guide
When you are selling privately, used Kelly blue book car value as a guideline and show your potential buyer how much the car is worth.
The savvy buyers will pay lower than the book value, but who wouldn't be happier if getting more that what is worth? The car dealers do and so will you.
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