kelly blue book


 

UNSPOKEN KELLY "BLUE BOOK" SECRETS

 

When it comes to "edmund's" & similar pricing guides such as "kelly blue books" , everybody wins but the public:

If you are a dealer, you already know that autos simply do not sell for what the kelly blue books and pricing-guides suggest. In fact, many dealers lose money on their first few sales because they rely on the wrong figure in the blue book.

Insurance companies win because they pay off "totaled" cars by using the lowest figure in kelly blue books.  Dealers often win because they mislead the public into thinking that the value of the auto is based on the highest figure of a kelly blue book.

Experienced dealers are typically concerned with two price standards: What autos are selling for at wholesale and what cars are currently selling to the public for at retail.  Experienced auto dealers do not use kelly blue books for such figures.

Experienced dealers typically determine wholesale prices from "market reports" which are obtained at auto dealer auctions. (Market reports are lists of what cars actually sold for at the auctions.) These are much more reliable than kelly blue book wholesale price.

 - Another way to determine wholesale prices is to use the N.A.D.A. Official Used Car Guide, which is similar to the "kelly blue book", except it has prices closer to reality (800) 966-6232. N.A.D.A. Guides are usually available at some dealer auctions.

Another good source is the kelly blue book homepage online. You can find online "trade-in" values that are extremely close to what cars sell for at wholesale dealer auctions.

The "Edmund’s" price guide online is also a good resource but tends to over-inflate prices (similar to kelly blue book) Most dealers use "edmund’s" for learning about things such as re-calls on cars and what options were added to the cars each year.

To find out what cars currently sell for at retail, the best method is to ignore the kelly blue book and look at various ads for a certain car in various publications. 

 Just take the average asking price, and subtract $500 from the price of low-priced cars and $1,000 from the price of high-priced cars. What you end up with is close to what the car will probably sell for, since people tend to advertise $500 to $1,000 more than they really want. (The web is also a great source here. Try the "Recycler" or "Trader online" to determine real-life retail prices.)

Remember: Never get excited and bid on a car because the price is "below blue book" or you may lose money. Unless the cars are popular in your area, most of them only sell for the low "kelly blue book" value!

Also, remember that there are two different "blue books" – one for the public and one designed for dealers. Which one are you holding!

 

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