If you have ever shopped for a used car or sold your used car, you are probably familiar with the “book value” of the vehicle. The “book value” refers to the price listed in the Kelley Blue Book, the most respected and used pricing book for used cars in the auto industry. But how much do you actually know about the KBB and its prices? Here is some information that can help you when it comes to getting a good price on financing your next used car.
• The Kelley Blue Book is simply the “suggested” retail price. That means there is some flexibility in the price to take into consideration the circumstances and actual condition of the vehicle.
• The Kelley Blue Book prices are typically higher than the prices that dealers are getting for used cars.
• There is usually a difference between the book’s “asking price” and the actual price that dealers are getting for a certain used car.
• The KBB price is more of a starting point for negotiations when it comes to buying used cars, either privately or at a dealership.
• Remember that the higher listing price may also work in your favor if you have a trade-in when financing your next used car.