- Kelley Used Car Book Value - ppdigital
There are few popular guides for determining used car values. Edmonds, NADA and Kelley Blue Book are a few of the more popular guides for used car values. This article focuses on Kelley Blue Book and explains the meaning of the four pricing categories.
- suggested retail
- private party
- trade-in
- certified pre-owned
Kelley Used Car Suggested Retail Value
Car dealers normally use the suggested retail value as a starting point for the selling price of a vehicle to the general public. With the exception of certified pre-owned value, this pricing category has the highest value. New and used car dealers will often advertise this price as the normal retail price of the vehicle, and show a discount off the suggested retail price.
Kelley Used Car Private Party Value
The private party value is based on the selling price between individuals. This value is based on a vehicle that is sold “as is”. Suggest retail price is always higher than private party because of reconditioning costs and dealer profit margins. If a person is listing his or her own personal car for sale, the private party value is the starting point for the selling price.
Kelley Used Car Trade-In Value
When a buying or leasing a new vehicle, this value is assigned to the used vehicle if a car owner is trading in their old car. Often times car dealers will use an auction value, which is usually less, because they can sell the vehicle at auction and without a loss.
Since private party is higher than trade-in value, the car owner may consider selling their used vehicle on their own. This will allow for a larger down payment for a new vehicle purchase. Depending on the vehicle, the difference between private party and trade-in value could be quite substantial.
Kelley Used Car Pre-Owned Certified Value
This value is for vehicles that are used (preowned) and certified by the vehicle manufacturer. This is the highest of all the values because of the strict standards of certification by most vehicle manufacturers. These cars must pass a comprehensive inspection process and come with additional factory limited warranties. If looking to buy a pre-owned certified used car, use this value to check the honesty of the new car dealer.
It’s important to note that different used car value guides may not have the same values. Car values can also differ by geographical locations. There are also different values depending on the condition of the vehicle. Whether buying or selling a car, Kelley Blue Book and other guides are a great resource to determine the value of a vehicle.
Source:
kbb.com
James Clausen - Clausen received a Bachelors Degree in Business Administration in Automotive Management and Marketing at Northwood University, graduating ...
