How Can I Use the Kelley Blue Book to Buy a Car?
The Kelley Blue Book is a great reference tool compiling information from thousands of dealerships across the nation to determine estimated pricing for buying and selling new and pre-owned vehicles. The Blue Book presents different types of pricing, and it’s helpful to know the difference between them:
For New Vehicles:
- Manufacturer Suggested Retail Price (MSRP): The selling price the manufacturer suggests for a new vehicle.
- The Dealer’s Cost: The price the dealer pays the manufacturer for a new vehicle.
- Pricing for additional options
For Pre-Owned Vehicles:
- Retail Pricing: This is the price you might typically pay for the vehicle at a dealership. It factors in dealership costs, such as preparing the vehicle for you, and any reconditioning or work that may need to be done on a pre-owned vehicle.
- Trade-in Price: This is a typical price you might receive for trading in the make and model.
- Private Sale Price: This reflects the price you might receive for selling your vehicle to another individual privately.
These prices are estimates based on research on new vehicle sales across the country. Pricing for pre-owned vehicles is based on an estimate of the depreciation of a particular make, model and year, extra options, mileage and the condition of the vehicle. The Blue Book is meant to be used as a guide and actual prices may vary based on a variety of factors including supply and demand, mileage, options on the vehicle, condition of the vehicle (for pre-owned vehicles).
If you’re buying a pre-owned vehicle, make sure to review the vehicle’s history. Ask the dealer to give you the following:
- CARFAX Vehicle History Report — listing the number of owners, service intervals and accident history.
- A copy of the work order indicating any repairs that the dealer has made to the vehicle prior to putting it on the lot for sale.
At Jaffarian, we use our own Evidence Manual that contains copies of the above, along with any prior service history if the vehicle was serviced at Jaffarian. If a vehicle for sale has had all its required maintenance performed by us, we market it with pedigree papers.
Use the Kelley Blue Book as a guide in the process. At Jaffarian, we are here to assist you helping you make the best decision in buying a vehicle and/or trading in a vehicle. We want to make sure you always drive away happy!