Looking To Buy A Car? Is Kelley Blue Book Accurate? Find More And Read Further
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Is Kelley Blue Book Accurate? With over 20+ million visitors per month, Kelley Blue Book is a massive website with all the perks needed to help car owners. However, it’s important to understand the nuances of this resource and what it has managed to offer over the years.
A lot of people wonder, is Kelley Blue Book accurate? Does it do a good job of providing accurate values that are worth considering or does it embellish?
These are important questions to ask especially when investment decisions are made into this particular asset. Let’s take a look at how Kelley Blue Book works and where it gets those all-important values.
How Does KBB Get Its Values?
Let’s begin by taking a look at how KBB works in the first place.
In general, KBB is noted for being a resource that aims to find the appropriate price for each vehicle. They are going to have a strict formula in place that is able to go through important pieces of data and come up with a final valuation.
However, it is important to know how it works and what the team behind KBB do to make sure the values are consistent.
In general, KBB has a set formula that is used for all of the valuations depending on the information made available to them. For example, they start by making use of a checklist of items that are broken down into smaller sub-categories.
1) CPO Value
It starts with the Certified Pre-Owned Value (CPO). Each car is going to come with a CPO value that has been attached to the brand’s CPO program. Major brands all provide this information and have set amounts based on mileage, usage, and other details. KBB is able to harness all of this information and come out with a valuation.
2) Retail Value (Suggested)
Each make and model is going to have a suggested retail value that is mentioned in its internal resources.
The same information is used by KBB to account for how much a vehicle may cost. These values are often asked by the dealers if someone were to come in for a used car. They would put this price tag up on the window.
3) Private Party Value
KBB also takes a look at the private market because that does make up a large chunk of sales. To do this, KBB looks at what the going rate is on the open market and then averages it out.
4) Trade-In Value
The final part of their formula would be the perceived trade-in value of a particular model. This is the amount a vehicle owner would get from the dealer if they were to walk in and request a trade-in.
As most people already know, this information can be skewed depending on the dealer and it’s important to pay attention to this factor. It may not be as favorable as you want it to be. In fact, it might end up swaying towards the dealer’s side, if you were to take a look at the value of a particular model!
This is how KBB comes up with the values that are printed in its resources. You want to be able to take this information and understand how it is coming to fruition. Once you are able to do this, you can make appropriate decisions for your situation.
Is Kelley Blue Book Accurate?
In the end, you are going to have one question and that remains “is Kelley Blue Book accurate?” For those looking to find an answer, you will know this is a wonderful resource that’s trusted by millions of people. It does provide great information that is useful in your particular situation.
You should remember, there are certain details that should be taken with a grain of salt. There are times where the KBB values favor dealers or sellers. You want to be able to take these details into mind while negotiating. Always remember, KBB is nothing more than a launching pad for you to work with and shouldn’t be considered the gold standard or final decision maker. It’s a part of the process and that’s how you should look at it.
If that is the mindset you take while using KBB, you are going to be in good shape.