What is trade in value?
When consumers buy a new car and sell their current vehicle to the dealership, that vehicle is called a trade-in. Almost always, the amount of money that a dealer will offer for the vehicle, the trade-in value, is less than the amount of money that you could get by selling it on your own, the market value.
As a car owner, you might decide to sell your car to the dealership and buy a new one. That vehicle is called a trade-in and the worth of the used car in terms of money is called the trade-in value. The trade-in value is therefore the amount of money a dealer will offer for a vehicle, this is most always less than the amount the car owner could sell it in the outside market, market value.
A new car starts losing its value as soon as its tires hit the public roads. This and other factors are considered to determine the value of a not-new car. Car dealers and buys have relied on the information from certain sources to make well-informed car, truck and SUV buying decisions.
The Kelley Blue Book trade-in value
Since 1926, new and used car buyers and sellers have relied upon Kelley Blue Book for authoritative and unbiased information. Most people rely on the Kelley Blue Book (wrongly spelt Kelly blue book) making one of the popular pricing guides in the country.
Kelley Blue Book receives real-world used car prices on a daily basis from wholesale auctions, independent and franchised dealers, rental fleets, auto manufacturers, lessors and private party transactions.
To determine car values and other products, pricing data from these sources along with historical trends and economic conditions are analyzed using the Kelley’s proprietary algorithm. Other factors that determine the are industry developments, time of year and location.
The Kelley Blue book data is very useful to determine trade-in value especially when you are planning to sell your used vehicle. Follow the following suggestions in your quest to get the best trade-in value for your used vehicle using the KBB pricing guide
If you are buying a used car from a private seller, show KBB’s car condition definitions to the seller especially if the selling price is far higher than it is worth
Don’t rely on one pricing guide, apart from the Kelley blue book, sort out other sources like Black book and NADA guide for a fair worth of trade-in value
Be able to negotiate the price irrespective of what the kbb trade-in value is.
How to use KBB Trade value for Used Car