#used car pricing guide
Kelley Blue Book Used Pricing Guide
Photo by Greg Gjerdingen, Flickr .
Determining the fair market value of a used car is easy with the Kelley Blue Book used car pricing guide. By simply filling in a little information (year, make, model, mileage, and vehicle condition) Kelley Blue Book will estimate the car’s value, which in turn can be used during any one of a myriad of buying decisions.
How Kelley Blue Book Determines Used Car Value
As an unbiased source for information, KBB used pricing information adds an authoritative element to the negotiation process, helping both the buyer and seller make a well-informed decision.
In order to determine a fair unbiased price, KBB takes into factors in a number of key influencers these include:
Market Demand: Depending on the area in which the vehicle is being sold, demand or lack thereof can impact the used vehicle’s value. This means that a used car sold in New York may be valued differently when compared to a used car sold in Iowa.
Condition: Condition of a vehicle will have a major impact on its value. Unfortunately this is also subject to personal opinion, meaning that it is easy to overestimate or underestimate the vehicle’s current condition.
Optional Feature: There is a definite difference between a car with no extras and a car with a full array of high-tech and comfort features. Kelley Blue Book pricing takes this into account when determining the value of a vehicle.
Mileage: The average mileage for a vehicle is 15,000 miles a year. Any vehicle that has been driven more or less should have their value calculated accordingly.
By taking the above criteria into account, the Kelley Blue Book used car pricing guide can be used to help buyers and sellers establish:
- Private Party Value
- Retail Value
Kelley Blue Book lists the trade in value of a vehicle. This is the amount you could expect to receive from the dealer if you used it in trade for another vehicle. Keep in mind that this assumes an accurate appraisal of the vehicle, meaning that both you and the dealer must offer unbiased opinions about the vehicle’s current worth.
It is also important to note that the trade-in-value is often less than you would receive if you sold the car yourself. However, while you may not receive top dollar, there are a number of advantages – including:
Guaranteed Sell: Selling a car privately can take months. But you can take your car to the dealer and get rid of it in as little as one afternoon.
Hassle Free: You do not have to deal with the added cost and hassle of cleaning your car and listing it in a classified section.
As-Is: Besides taking your car to the carwash, emptying the trash and running the vacuum, you can pretty much give your car to the dealer “As Is”.
Defining Private Party Value
The Kelley Blue Book used private party value is what you can expect to pay if you bought the car used from the dealer. Or, it can represent the value you should expect to receive when selling your used car privately (i.e. not trading it to the dealership).
Remember, the private party value is by no means a static figure, and it can change depending on:
Warranty: If there is a warranty attached to the vehicle, the dealer’s asking price can fluctuate. Often, when dealers are including a warranty on a used vehicle, they will inflate the price to cover possible liability on their part.
Vehicle Condition: If the dealer determines the vehicle to be in excellent condition, this will drive up the price. Be skeptical if this happens. Kelley Blue Book estimates that only 5% of all used vehicles are in excellent condition.
Defining Retail Value
The Kelley Blue Book used suggested retail value represents the average dealer asking price. Keep in mind that this should serve as a starting point for negotiations and is no way representative of the final amount you should pay. In fact, the final sale price will likely be less depending on:
- Local Market Conditions
This retail value also takes into account the dealers profit, costs for advertising, sales commissions and other costs of doing business.
In the end, Kelley Blue Book used car pricing can serve as a good barometer for buying and selling a vehicle. When used in conjunction with your own independent research, it can ensure that you get a price that is fair.
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