Have you come across the book called Kelley Blue Book? It is also called simply the Blue Book. Although the Blue Book has many meanings, we will see the Bluebook related to vehicle statistics and information. This book was first published in 1926 by Les Kelley, a Los Angeles car dealer. Do you know that it contains all the quoted prices of new and used automobiles and other transports?
Also, it has all the details regarding the models and types of vehicles.
In the beginning, it was only available to the people part of the automotive industry. Then a customer edition was released during the 1990s online, and many people started to read it. This book is a very beneficial one as it offers the readers a fair market range. So the car buyers can know the price of a particular type of car based on its model and style. Find all the details of Kelley Blue Book here.
Table of Contents
Why is the Blue Book essential for car owners and dealers?
The Kelley Blue Book serves as the guide that contains price quotes of the vehicles in North America. Also, the car sellers and buyers refer to the book to know about the resale value. Many auto insurance companies consider the Blue Book Value as the benchmark to determine the market value. For instance, if a car owner and his vehicle experience a collision, he can check the book. He will know whether to spend money to repair the car or give it up as a loss. In this way, he will save lots of money.
The Kelley Blue Book will help the readers to know the private party value, retail value, trade-in-value, certified pre-owned (CPO) value for second-hand cars and more. Furthermore, the new edition of the Blue Book has revealed what the consumers are paying to buy new cars. That is why the Kelley Blue Book is essential for people selling or buying cars.
How can you use the Blue Book?
The Kelley Blue Books will help the vehicle buyers and sellers know what prices others are paying to them. They can compare the various features of the vehicle, which will help them to determine the price. In this way, car sellers can profit from the car sales. Also, car buyers can have the satisfaction of paying good money for the car model.
Moreover, people can get out of the Blue Book because it shows the expected costs. For instance, if you want to know about the price you have to spend for a car’s fuel, maintenance, repairs, then you can refer to the Blue Book. So before buying a car, you can see how much you have to spend to maintain it. Also, the Blue Book provides the costs of insurance and financing with the depreciation value. In this way, you can know how the vehicle’s cost will decrease in five years of use.
How does the Blue Book determine car price?
The Kelley Blue Book contains the fair purchase price of the car. It will show the price the other buyers pay for the same vehicle. Therefore, you can know the price of the car with the same model and the release year. The car prices differ according to the region and market conditions. Therefore, this book will enable you to know all the prices. As a buyer, you can get an overall picture with the Blue Book.
But you have to keep in mind that the Blue Book does not show the lowest prices of a particular car selling in the market. On the other hand, it shows the selling price of the car at the present moment. The prices in the Blue Book are set by collecting data from many customers who have purchased cars. Also, the data from the vehicle registration databases are added to the book.
Kelly Blue Book will collect the aggregate information every week to update. It will use a proprietary algorithm to examine the pricing data, location, time of the year, historical trends and market conditions. Then everything gets compiled in the Blue Book for the automotive buyers and sellers reference.
What are the values in the Blue Book (Blue Book Value)?
You can find three different values at the Kelley Blue Book.
- The first value is the trade-in value. This is the Blue Book Value that you can get from a car dealer when selling a used car.
- Then there comes the Private party value. This refers to the amount that you may give to the private individual when buying a used vehicle from them.
- The third is the retail value. This is the amount you can pay to the dealer.
In the Blue Book, you can find the compilation of all the values. There will be values of the new cars too. But the manufacturer of the vehicle will fix the manufacturer’s suggested retail price (MSRP). This means that the vehicle dealer can decide to sell the car at a price more or less than the (MSRP).
Furthermore, the dealer invoice or the invoice price is the amount the manufacturer charges the car dealer. As we saw earlier, Fair Purchase will show you what the other buyers are paying for the car. This value comes from the transaction information of the dealers who sell the cars across the country.
This is how the Kelley Blue Book and Blue Book works. It is helping many people to buy and sell cars.