How accurate is Kelley Blue Book pricing??

[mmouse1239]

We recently found a nice used car that we wanted to purchase for our daughter. Problem is, when I check the pricing on Kelley Blue Book website, it says that the car is overpriced by 1200 dollars. I'm not about to pay that much more than what a car is supposedly worth. My dad (who has bought several cars from this used car dealer) is going in there with my printout from Kelley to ask them why their pricing is so off. It's a really nice car, and I would have no problems paying what it is worth, but I don't want to be ripped off either. Any suggestions?

 

[msmayor]

A seller can ask whatever they want for a car...I wouldn't consider it 'ripping you off' to have an asking price above the KBB value. Its ripping you off if they sell you a car dishonestly...by not disclosing all the facts (good AND bad) about the car.

KBB is a benchmark for the valuation of used cars. Some cars may be worth more, some less...folks interpret 'condition' in different ways which can affect the overall value. Its a great starting point for folks to begin the negotiation process and decide if they want to make the purchase.

You're smart to know what the KBB value is. The seller can now be asked (in a calm manner, of course) why he/she feels the vehicle is worth so much more than this stated value. You can either choose to believe it or not. You can choose to pay his price or counter-offer.

Whatever you do, have it checked out thoroughly by a mechanic before buying it.

 

[MrsMork]

At a dealer, when you are trading in your car KBB is "way over the value" and when you are buying from them it is "way under the value". Seems worthless in dealing with pros to me.

 

[reducereuserecycle]

and i heard something like the price of used cars went up because so many were destroyed in the cash for clunkers program that there is a shortage of used cars

 

[mikehn]

A car is only worth whatever a buyer is willing to pay for it. Period, end of story. Unfortunately, most people dont know that and think Kelly blue book is some sort of bible or something.

 

[Inigo]

I think edmunds.com is more accurate, but that's just my opinion and I could be completely wrong. I used their True Market Value when we bought our new cars, and it was pretty close to what I paid after negotiating.

For my kids' used cars, I used the TMV as information when I was negotiating. I'm a pretty good actress, so I was able to talk them down quite a bit.

 

[Minniemama350]

I think edmunds.com is more accurate, but that's just my opinion and I could be completely wrong. I used their True Market Value when we bought our new cars, and it was pretty close to what I paid after negotiating.

For my kids' used cars, I used the TMV as information when I was negotiating. I'm a pretty good actress, so I was able to talk them down quite a bit.

I agree.We've always used edmunds. Kelly tends to be overpriced.

 

[NeverlandClub23]

When I worked at a car dealership we went by NADA for trade-in values, they are most always less than Kelly Blue Book. I work as a paralegal in Estate Planning/Administration and when I have to value estates (including vehicles) I use NADA. When I've sold past cars I usually would sell it at the cost in between NADA and Kelly Blue Book as the buyer always wanted to negotiate down and it was a good starting point without scaring them off.

 

[chloe770]

and i heard something like the price of used cars went up because so many were destroyed in the cash for clunkers program that there is a shortage of used cars

This is absolutely TRUE! My DH owns 3 used car dealerships and I can tell you that most dealers (new and used) are having a hard time getting used cars to sell because of the cash for clunkers program.

The Kelly Blue book is an average taken about every 3 month. Dealers don't really use it to much for retail pricing. They price more based on what they have to pay to get the car to sell. I would suggest using the internet to find comparable vehicle and check the price that way. You may find that you are actually getting a fair price.

Good Luck

 

[mbanks21]

I would suggest NOT using KBB. When I sold cars people would say "KBB has the car priced at $xxxx" Id say "well buy it from them, oh wait they dont sell cars". Dealerships use NADA (nada.com) or even edmunds seems more accurate but in a nutshell as has been said, a car is worth what someone will pay.