Are Kelley Blue Book Values Accurate and Reliable? (2024)

Whenbuying or selling a used car, many people rely on theKelley Blue Book (KBB), which has been around since 1926. One sign of its popularity: In 2017, over20 million unique visitors per month visited the Kelley Blue Book website, today the number is likely even higher.

Although automotive experts acknowledge that the Kelley Blue Book is one of the most popular and trusted guides in automotive pricing, the question remains: Is it accurate and reliable? Here’s a look at how Kelley determines car pricing, an assessment of some issues consumers might encounter with KBB pricing, and a brief review of some of the top competitors in the industry.

Key Takeaways

  • The Kelley Blue Book—and its equally popular website—is one of the most trusted guides for automobile pricing, used by those who are buying or selling cars.
  • Kelley assesses a wide array of different values to both used and new vehicles. For used vehicles some of them include: Trade-in value, typical listing price, fair purchasing price (CPO), and private party.
  • Kelley determines Blue Book values by analyzing pricing information from real-world used car prices, as well as industry developments, economic conditions, and location.
  • Potential problems with Blue Book values include a delay as price information is assessed, the consumer tendency to overrate the value of the car they are selling or trading in, and a mismatch between wholesale values listed by Kelley and the prices used by dealers, who access special industry-only pricing info.

How Kelley Blue Book Determines Car Values

Kelley Blue Book receives real-world used car prices from wholesale auctions, independent and franchised dealers, rental fleets, auto manufacturers, lessors, and private party transactions. Using this data, they make weekly updates to prices.

Kelley’s proprietary algorithm analyzes pricing data along with historical trends, current economic conditions, industry developments, time of year, and location to determine Kelley Blue Book values.

That process results in 12 different used car values, in addition to several new car values. Some of the most crucial used car values are:

  • Private-party value: The starting point for a negotiation between a private buyer and seller for "as is" sales.
  • Trade-in value: The amount you are likely to get from a dealer for a trade-in.
  • Typical listing price: Represents what dealers are typically asking for the used car.
  • Fair purchase price (CPO): The price consumers may reasonably expect to pay for a certified pre owned car of this year, make, and model.

Some Issues With KBB Pricing

Some factors that could affect the accuracy of KBB values are lag time, consumer bias, and mismatched data.

LagTime

It takes time for data and analysis to make its way through KBB. Prices listed may not always reflect the very latest trends and economic conditions.

Consumer Bias

Most people think the car they are selling or trading in is in better condition than it really is. If you misjudge the condition of a car for trade-in or purchase, your expectations may not match the reality of KBB’s valuation structure.

Mismatched Data

Most dealers do not use KBB for trade-in (wholesale) values. Instead, many rely on National Auto Research’s Black Bookor the Manheim Market Report, neither of which is available to the public. More important, both tend to skew lower than KBB in wholesale pricing.

1926

The year Les Kelley, a Los Angeles car dealer, published the first Kelley Blue Book.

Solutions for Consumers

If you use KBB as a general guide and follow the suggestions below,Kelley Blue Book data can be very useful.

Print out Definitions

If negotiating to buy a used car from a private seller, show KBB’s car condition definitions to the seller, especially if you believe the car is priced too high.

Negotiate

KBB’s pricing structure tends to favor dealers, meaning listed retail prices can be higher than other guides. Start with the listed retail price and bargain down.

Ask for Sources

Be aware that insider guides like Manheim or Black Book tend to show lower wholesale prices than KBB. Ask about the source of the trade-in offer or wholesale price.

Consult Other Guides

Consult one or more other websites or pricing guides to get an “average” for the vehicle you are trading in, selling, or planning to buy.

Since the three main consumer guides—KBB, Edmunds.com, and NADA with J.D. Power—use different algorithms, your best bet is to check all three and calculate an average price.

Additional Resources

The following are several sources you can check for pricing and rating information before buying, trading in, or selling a used car.

Edmunds: This websiteoffers an appraisal engine that includes five car condition categories compared with KBB’s four. This can be helpful—or generate confusion—depending on how realistic you are about your car’s condition. Many experts believe Edmunds' values are more accurate than KBB's. That’s not always the case, of course, which is why getting several estimates and averaging still makes the most sense.

NADA with J.D. Power: One of the oldest guides, NADA guides were designed for dealer members of the National Automobile Dealers Association (NADA) trade group. For consumers, NADA partners with J.D. Power. Their website will lead you to J.D. Power's site where you can research new and used vehicle values by make and body style.

Consumer Reports:The well-respected, noncommercial (no advertising accepted) publicationoffers lots of information if you buy an online subscription, less if you don’t. The website features general pricing on used cars, information on reliability, cars to avoid, and much more.

The Bottom Line

Kelley Blue Book is a very good resource, but it should not be the only one you consult. Although none of the top used car buying guides is perfect, when taken together—along with additional information gained from other websites and tools, such as auto loan calculators—they can provide reasonably reliable and accurate information for your used car transaction.

Are Kelley Blue Book Values Accurate and Reliable? (2024)

FAQs

Are Kelley Blue Book Values Accurate and Reliable? ›

How Accurate are Kelley Blue Book® Car Values When Selling Your Car? Kelley Blue Book (KBB) values can be a helpful starting point for estimating the value of a car, but it's important to keep in mind that they are just estimates and may not always be 100% accurate.

Are Kelley Blue Book prices accurate? ›

KBB can be a decent general idea of where the value of your vehicle may fall but it does not take into account a multitude of factors. At the end of the day KBB is averaging in current retail rates of vehicles n the market, which is significant flawed.

What is the best site for accurate car values? ›

90 Years of Pricing Expertise

And today there's no better place to find the value of your current car than KBB.com. Whether you're trading in your car, selling it privately, or taking advantage of the Kelley Blue Book ® Instant Cash Offer, we're here for you.

Where does Kelley Blue Book get its value? ›

We leverage massive amounts of data, including actual transactions - then adjust for local market conditions and seasonal trends. Our values reflect both wholesale and retail transactions to provide a 360 degree view of the market.

How accurate is KBB for older cars? ›

If you have a unique or rare vehicle, the KKB value can be inaccurate. The KBB is not a good source for antique or classic vehicle values, as it only provides information for vehicles less than 21 years old. Understanding the general value range of a vehicle is an important factor when buying or selling.

Should I go by nada or KBB? ›

KBB factors in the condition of the vehicle, local market conditions, and popularity of the vehicle, so their prices tend to be a lower than NADA. NADA values tend to lean higher because they assume cars are in good conditions. Insights can be gained from both values, but KBB looks at more factors.

How often do KBB values change? ›

Kelley Blue Book updates or verifies our values and pricing at least once a week to give dealers and consumers up-to-date information.

What is the most reliable car valuation site? ›

An HPI car valuation provides the most accurate and reliable car valuation available. Not only is our service free, but we also give you more information than any other car valuation provider. If you're looking for a used car value, then look no further than HPI valuations.

Is Edmunds or KBB more accurate? ›

Many experts believe Edmunds' values are more accurate than KBB's. That's not always the case, of course, which is why getting several estimates and averaging still makes the most sense.

Where to sell your car for the most money? ›

If you want the best price for your car, consider placing an ad on a private seller marketplace or to potential buyers in your local area. However, dealers and online car buying services may be your best choice if you want an easy process with a quick turnaround.

Why don t dealerships use Kelley Blue Book? ›

Car dealers pay no attention to KBB & Edmunds. They are frequently very wrong (both high & low) in their estimates. Dealers use daily or weekly auction data as the main tool to value your trade-in. If you really want to know what your car is worth, take it to a Carmax/Carvana and get them to bid on it.

Why is KBB so far off? ›

The accuracy of KBB values can vary depending on several factors, such as the condition of the vehicle, its location, and the current market demand for that particular make and model. KBB values are based on a number of factors, such as the car's make, model, year, mileage, condition, and features.

What is the fair condition on Kelley Blue Book? ›

“Fair” condition means that the vehicle has some cosmetic defects that require repairing and/or replacing and requires some mechanical repairs. The paint and bodywork may require refinishing and body repair. The engine compartment has leaks and may require a tune up. This vehicle may have some repairable rust damage.

Who gives the most accurate car value? ›

Kelley Blue Book, known as KBB, is a trusted name in automotive valuation. With a vast database and an intuitive interface, KBB enables users to accurately estimate the value of new and used vehicles. Simply enter details like make, model, mileage, condition, and location to get a tailored valuation.

Why is CARFAX value so much higher than KBB? ›

CARFAX has a diverse set of data sources. They claim to use over 100,000 sources, encompassing 20 billion records. Most of these resources go into creating the vehicle's history, which, in turn, helps CARFAX create its CARFAX History-Based Value. CARFAX unfortunately does not provide values for new cars.

How old should a car be for best value? ›

The “sweet spot” for purchasing a used car is between 2 to 5 years old. This is the age range where the car has already gone through the steepest part of its depreciation curve, but it's still relatively new and in good condition.

How does KBB come up with their fair purchase price? ›

Fair Purchase Price is determined by collecting thousands of actual consumer vehicle purchase prices, plus data from national vehicle registration databases and several other reliable third-party sources. Kelley Blue Book's lead analysts and statisticians review and validate the data each week for reliability.

What is considered very good on Kelley Blue Book? ›

“Very Good” condition means that the vehicle has minor cosmetic defects and is in excellent mechanical condition. This vehicle has had minor or no paint or bodywork, and requires minimal reconditioning. The engine compartment is clean and free of fluid leaks. This vehicle is free of rust.

What is the difference between fair and good KBB? ›

The tires match and have substantial tread wear left. A "good" vehicle will need some reconditioning to be sold at retail. Most consumer owned vehicles fall into this category. Fair condition means that the vehicle has some mechanical or cosmetic defects and needs servicing but is still in reasonable running condition.

What do banks use to determine car value? ›

It's crucial to know how JD Power values affect your vehicle, boat, or RV financing. Banks, credit unions, and finance companies secure vehicle loans using the vehicle's worth. JD Power tells the bank the car's worth, which tells them how much they can loan and how much down payment you'll need.

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