Are you on the market for a used vehicle? Then you must understand the market value of the car.
The used-car market is a wonderful place for buyers who like a practical and reliable vehicle without the new-car price tag. These days, used car quality is far better than ever. However, the entire buying process could still be time-consuming and frustrating.
To find out how much of a car is worth, you could either employ a professional appraisal or read a car valuation guide.
One of the most trusted car valuation guides in America today is the Kelly Blue Book. It was first published in 1926 and delivered accurate and unbiased auto pricing information for car buyers and sellers alike.
It is widely used today and recognized as the leading authority in trucks, cars, and SUVs valuation. However, you should not completely pay over KBB value, especially when you are taking a loan for a vehicle.
Keep in mind that dealer fees, sales tax, interest paid over the life of the loan, and more add additional cost to an asset that depreciates over time. Instead, it may be a good idea to buy a cheaper vehicle and pay cash with a price close to KBB, drive it for a year or two and resell for the almost same price or at least close enough.
Tips for Buyers
If you plan to use KKB as your general guide and follow these tips below, then the KBB value could be very helpful.
- Present definitions
Are you trying to negotiate to purchase a used car from a private seller? You can show Kelly Blue Book’s car condition definitions to the vendor, particularly if you think the vehicle is priced too high.
The pricing structure of KBB is more likely to favor dealers. That means listed retail prices could be much higher than other guides out there. Begin with the listed retail price and then bargain down.
- Request for sources
You need to be cautious of insider guides such as Black Book and Manheim, as these are more likely to give lower wholesale prices compared to KBB. You can request the source of the wholesale price or trade-in offer.
- Check with other guides
It will help if you consult one or more price guides or websites to acquire an average for the car you’re trading in, planning to purchase, or selling.
Kelly Blue Book is a great resource. Nonetheless, it should not be the only one you consult. Even though none of the best used car buying guides is faultless, when taken together—together with extra information obtained from other tools and websites—they can offer reasonably accurate and reliable information for your used car transaction.
There you have it! We hope you find this article helpful and informative. What are your insights about this post? Are you ready to buy a new car? Share your thoughts with us by leaving your comments below.