What is Kelley Blue Book?
When looking at used cars or looking into selling your car, you’ve probably seen the words “Kelley Blue Book” or “KBB” come up. Have you found yourself asking, “Well, what is Kelley Blue Book?” Don’t worry because TFC Title Loans can help you with that question.
We have been helping customers with Car Title Loans for more than 20 years. When our customers have wanted to figure out the value of their car before they committed, they’ve gone to Kelley Blue Book and their online estimator. For an auto title loan lender that uses the value of your car to provide you a loan, you can trust us to inform you on Kelley Blue Book.
In 1918, Les Kelley opened up a used car dealership in Los Angeles, California. He would create a list of used cars that he wanted to buy from the local dealerships around him. Now, the Kelley Blue Book values are the standard used by dealerships across the nation.
The auto industry began to use Kelley Blue Book as a valuation service to fulfil the need for used car purchasing information by banking and insurance industries. The government used the Kelley Blue Book to put a ceiling price on used cars after World War II. Until 1993, the book only existed as a “trade” publication. After 1993, a Consumer Edition published and now owners have the ability to access the program through the website kbb.com.
Kelley Blue Book Values & Their Establishment
Kelley Blue Book uses actual transactions to come up with their analytical data. They collect used car purchase information to feed into their data base. They find their information from:
Dealers trade and sell at auctions for cars they think that they can sell at their establishment. They get these cars from other dealers, rental agencies, fleet owners, off-lease vehicles through financial institutions, and manufacturer demo/promotional vehicles.
These are everyday dealers that sell different types of car makes.
The specific branded dealerships, which will tend to sell other brands used cars.
Rental & fleet
Rental agencies and fleets will send their used cars to auctions after at least one year of use.
Original equipment manufacturer (OEM)
The equipment manufacturer will send used cars to auctions that had been for employees or promotional use.
Financial institution lessors
When you lease a car, the financial institution owns it and you rent it. When the lease is up, they’ll either sell the car to the lessee or auction it.
Consumer private party transactions
Kelley Blue Book tracks the consumer sale price each year.
In order to determine the exact value of the vehicles, Kelley Blue Book follows their historical trends, current economic conditions, industry developments, seasonality, and the location of the consumer. Kelley Blue Book focuses on four different value categories:
- KBB Private Party Value: the amount a buyer would pay through the private party
- KBB Trade-In Value: the amount the car owner would receive from a dealership
- KBB Suggested Retail Value: how much the dealer should sell the car to a consumer
- KBB Certified Pre-Owned Value: how much the dealer should sell the car to a consumer if the car is part of the automakers certified pre-owned (CPO) program
How to Find My Car’s Value on KBB
You can get an accurate estimate for the value of your car through Kelley Blue Book’s online estimator. It’s simple to use, even if you don’t know a lot about cars.
- You will first be asked to enter the year, make, model, and mileage on your car.
- The page will ask for your zip code or the zip code you plan to sell your car through so it can estimate your location prices. Then, you’ll be asked the vehicle style. For example, a sedan or hatchback.
- You have the option to select the standard equipment included with your vehicle or if you have any specific features. If you have items like power lock, power window, CD/MP3, or any extra packages, we suggest you look through the options to get an accurate estimate.
- Even the color of your car will determine the price, so click from the color options which one is yours.
- Next will be the condition of your car. It ranges from fair to excellent, so try to be as honest as possible. Think about how well it operates and the condition of the exterior compared to the year and mileage.
- You will receive the value, which you can switch between trade-in or private party. You also have the option to see the prices for fair to excellent.
Come to TFC Title Loans!
Once you’ve seen the estimate of your car, divide the value in half. That’s how much money you could get from TFC Title Loans! If that sounds like a good deal to you, give us a call or fill out the application on our website. We will give you some of the most competitive interest rates in the business and A+ customer service. Once you’ve completed the application, you can get your money in as little as one business day. What are you waiting for?