The Mysterious Case of Kelly Blue Book's Used Car Prices
Kelly Blue Book, also known as Kelley Blue Book, or KBB, is the leading authority on used car prices. Yet, out of the millions of people who turn to Kelly Blue Book when selling or buying a used car, only a handful get to the bottom of its valuations.
It should be an open-and-shut case: You visit the website, type in your car's information, and take the big number that comes up. But the mystery only deepens--unless you unravel the clues in the fine print.
When using KBB's default pricing tool, you'll get the "Suggested Retail Value" for a vehicle that is in "Excellent Condition." In plain English, that's how much a dealer would charge for the auto on his lot if the car were in excellent condition.
But less than 5% of all used cars qualify as "Excellent Condition" vehicles. According to Kelly Blue Book, a vehicle is in excellent condition when it:
In addition, the engine compartment must be clean, with no fluid leaks or visible wear/defects, and the vehicle must have complete and verifiable service records. That is why such a tiny percentage of cars make it to this category. Still, this doesn't stop consumers from immediately assuming that the suggested retail price for their vehicle is the bare minimum they should request when selling their auto.
Focus in on Your Used Car's Real Selling Price
You don't have to be Sherlock Holmes to get a more complete picture of your vehicle's worth, but you will have to use all of Kelly Blue Book's used car pricing tools. Your choices are "Dealer Trade-In Value," "Private Party," and "Suggested Retail." What you'll discover is that a dealer will offer you far less for your used car, truck, or SUV compared to Kelly Blue Book's suggested retail value, even if it's in "Excellent Condition." You'll also see that a private party will likely offer more than a dealer, but it's still a significant step down from the suggested retail value.
It might seem suspicious that you'd get Kelly Blue Book's "suggested" value, only to find that you'll get much less from either a dealer or a private party. There is some method to this madness, though the Kelly Blue Book won't point out the smoking gun. As we mentioned earlier, the suggested retail value is actually representative of what a dealer will ask for the vehicle on the lot. But what we didn't mention is that the price is inflated due to the dealer's overhead and other costs he must recoup.
Don't Settle for Less for Your Used Car
Once you piece the clues together, you'll find that Kelly Blue Book's tools are telling you that you'll get roughly 15% more money from a private buyer than from a dealer, depending on the condition and type of vehicle. However, the effort and cost involved in advertising, showing, and negotiating a private sale can overshadow any benefit that extra money brings you.
The excellent alternative to this Catch 22 is to sell your car, truck, or SUV to an auto buying service. They'll appraise your vehicle at your earliest convenience, giving you a cash offer right on the spot.
In our case, we guarantee to offer more for your vehicle than any dealer will. More importantly, we handle all DMV paperwork, as well as the smog certification and transport for the vehicle. That way, you get that extra 5-15% over the dealer's trade-in value without forking over out-of-pocket expenses such as advertising, smog check, etc.
It sounds like it's worth checking out, doesn't it? Especially since it's completely free. You can find out, right now, exactly how much money you can get for your vehicle and get that cash in your hand today. Just click here, fill out a brief form, and a Valuation Expert will phone you shortly--case closed.
