An important step in the car selling process is to figure out what the vehicle is actually worth on the secondary market. Many car buyers and sellers are familiar with Kelley Blue Book, so using a value from that resource as a guide should be a safe bet.
Kelley Blue Book Used Car Values
Looking up used vehicle prices on Kelley Blue Book is very simple. Follow these four steps to find out what a car is worth on the secondary market:
- Visit kbb.com.
- Navigate to the “Used Cars” tab on the home page.
- On the Used Cars page, use the drop-down lists provided to select the vehicle’s year, make, and model.
- Click “Go.”
At this point, three different values will be provided – trade-in value, private party value, and suggested retail value. Suggested retail value is what a consumer can expect a dealer to ask for a vehicle, and trade-in value is what a consumer can expect a dealer to pay upon trade-in. The private party value is the one that individuals should use for selling a car on their own to another individual.
Selling a Used Car by Owner – Use Kelley Blue Book Private Party Value
Kelley Blue Book defines private party value as “what a buyer can expect to pay when buying a used car from a private party. The Private Party Value assumes the vehicle is sold "As Is" and carries no warranty (other than the continuing factory warranty).”
Check Used Vehicle Prices on Kelley Blue Book (kbb.com) – Private Party Value
Once “private party value” has been selected, the quote becomes hyper-focused. Users must indicate trim, equipment options, mileage, vehicle condition, and even a particular zip code in order to receive a customized quote. The results will show an image of the vehicle (if available) and an estimate of its trade in value for three conditions – excellent, good, and fair.
Compare Kelley Blue Book Used Car Prices to Local Pre-Owned Auto Listings
As a final check, car owners should consider comparing the car’s Kelley Blue Book value to current local pre-owned auto listings. Regardless of what Kelley Blue Book indicates, an automobile may sell for significantly more or less than that value in different areas. For instance, a highly desirable 4-wheel drive vehicle may sell at a premium in Montana where snow driving capabilities are important, yet the same vehicle may sell at a discount in Atlanta, Georgia, where it rarely snows and large parking spaces may be harder to find.
What is Your Car Worth? Research Used Auto Values & Learn How to Sell a Car
A buyer will not accept a seller's “gut estimate” of the car’s value, so car owners should make sure to have some paperwork to show the prospective purchaser. When negotiations begin, owners should keep in mind that used vehicle prices may vary based on intangible factors like weather, despite what Kelley Blue Book indicates.
Individual sellers of pre-owned autos have many options when it comes to listing cars for sale. Learn about online vehicle listings and traditional auto selling methods in the article How to Sell a Car.
Resource:
Kelley Blue Book website, kbb.com
Lena Gott - Lena Gott is a Certified Public Accountant who gives practical financial advice to her readers.
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