Are Kelley Blue Book Values Reliable and Accurate?

Are Kelley Blue Book Values Reliable and Accurate?

Before purchasing a used car, it is necessary for consumers to check the current value of the used car they choose. Kelley Blue Book (KBB) is word-widely known as reputable valuation company that provides trusted guides of car values. It becomes one of the recognized guides among consumers and automotive industries. There are many internet users logging in to the websites. The number of the visitors is increasing every month. There are about 20 mullions people going to the site and it becomes the evidence for KBB’s reputation and it also shows that lots of people who want buy cars rely on KBB.

However, the popularity of Kelley Blue Book does not guarantee its accurateness. Here is the assessment to know how accurate and reliable Kelley Blue Book.

How KBB Set the Prices of Used Vehicles

KBB collects the data of current real-world prices from different sources such as dealers, rental fleets, automotive manufactures, private sales, and car auctions. They monitor the prices every single day. Then, some methods are used and combined to analyze the pricing data. The methods that determine the KBB values of used cars include Kelley’s patented algorithm, historical trends, the development of car industry, location, and the current economic growth.

The analysis generates some different values of used cards. The first one is a certified pre-owned (CPO) valued that determine the value of cars sold in CPO programs. The next is a private party value that is the price a buyer needs to pay from a private seller. The third is trade-in value. It is the value a buyer expects from buying a used car from a dealer. The last is the proposed retail value or the price a dealer generally for a particular used car.

Factors Influencing the Accurateness of KBB Values

There are a number of factors affecting the KBB values. Due to the factors, some issues related to the accurateness of KBB values take place. Here are the factors:

• Mismatched data. In determining wholesale values, many dealers consider the prices set by either Black Book or Manheim Market which tend to be much cheaper as they want to appeal consumers.

• Consumer bias. There is misjudgment concerning the car condition. Many sellers or traders often think that the valuation structure determined by KBB do not match with their car condition.

• Lag. It takes time for KBB to conduct the whole valuation process. Therefore, the car value the set sometime does not show the current price of used cars.

Also Read:

• How Kelley Blue Book Works

• NADA Guides vs Kelley Blue Book

• The Kelley Blue Book For Motorcycle Valuations

What are the Solutions?

Here are some suggestions intended for consumers who still want to use Kelley Blue Book as the main guides:

• Negotiating. It should be admitted that the prices set by KBB is often higher than those of other guide. Bargaining is a way to get a lower retail price.
• Showing Print-Out Definition. Present the KBB’s print out of car condition definition in case you want to buy a used car from a private seller and the price offered seems to be too expensive.
• Asking for sources. As Manheim, Black Book, and other guides may set lower wholesale prices, it is important to always request for sources.
• Using other guidelines. Combining some different guides is a great way to get the average price for the car you want to sell or buy.

Alternative Guides

There are some resources other than KBB that you can consider before trading, buying, or selling used cars. These resources can provide additional information and help you determine the current values of particular used automobiles.

1. J.D Power

This guide is a good choice for consumers who want to trade a car in a specific location.

2. Edmunds

Edmunds use more categories to set car values. That is why, this guide is considered to provide higher accurateness than KBB which only use four categories.

3. NADA Guides

NADA Guides are known to set higher pricing because of the specific standard it applies in determining the price. Therefore, adjusting the prices down is necessary.

4. Consumer Reports

Consumer Reports are always useful to get not only information on general used car pricing but also suggestions on recommended cars to buy.

Final Verdict

KBB is a good resource and has been used by many consumers and automobile experts all over the world. However, it should not be used alone as there is no perfect guide. Consumers are suggested to combine some guides to get the average price. Using some additional resources will help them to get more accurate and reliable price of use automobiles.