How Does KBB.com Value Used Cars?

KBB Details Retail Values of Used Cars

The Kelley Blue Book website at KBB.com differentiates values attached to used cars. KBB begins by offering a retail value on a used car. This is the amount of money you can expect to see on the sticker of a used car at the car dealership. KBB sets a number of parameters to arrive at this dollar figure; it is assumed that the vehicle has a traceable and acceptable title history, that it is in working condition and that any problems have been fixed. The used car retail value also makes allowances for dealer commissions and profit margins. Buyers researching a particular make and model used car need to remember that the final retail price may differ from the KBB value by virtue of extras included in the deal and optional aftermarket items attached to the car.

Sell Your Used Car "As Is" by Using the KBB Private Party Value

The Kelley Blue Book consistently values private party used car sales figures below retail figures. It arrives at this disparity by taking into account that private party sales are always "as is," whereas retail car sales require certain guarantees with respect to the functionality of the vehicle. While a retail customer has recourse and can request for a deal to be undone, a private party buyer has no recourse and even if the car stops working as soon as the buyer drives off, the deal is done. Because there are no warranties attached to the vehicle, it is priced lower than a comparable vehicle at the dealership.

Used Car Dealers Offer Trade in Values Based on KBB Figures

The lowest value, by far, is apportioned to a used car that is given in trade at a dealership. Priced even below the private party value, the Kelley Blue Book subtracts the costs the dealership may reasonably incur to repair mechanical problems, correct cosmetic damage and have a full safety inspection done by a professional mechanic from the "as is" value.

KBB Tracks Market Trends

In addition to assigning different values to a used car based on retail, private sales or trade in usage, the Kelley Blue Book also tracks market trends affecting the sale of used cars. Because these trends fluctuate around the country, a private sales value in Los Angeles may be vastly different from the sales figure in Salina, Kansas.