Want to know what your car or truck is worth? You can look it up in a number of resources, including the two most popular – the Kelley Blue Book and the NADA Appraisal Guide. The two resource guides are used extensively in the used car market to determine a price for used vehicles. The Kelley Blue Book has been in existence for 75 years and is the principle source for determining loan values for used cars.
How does Kelley Blue Book determine the value of a used car?
The formula for determining a vehicle’s value includes various factors and starts with the make, model, and year of the car or truck. The condition of the vehicle is taken into account as well as the mileage and a number of other options – does the vehicle have air conditioning, cruise control, ABS, etc.? Individuals can access blue book values online at Kelley Blue Book’s website. Doing so is free. Fill in the online worksheets and answer questions about your vehicle to receive an estimate of its value.
How are final vehicle values calculated?
There is a long, respectable editorial process that results in the final value of a used car. The process starts with an analysis of data that has been collected. This data includes the current economic state, seasonality, historical trends, developments in the auto industry, and location. When a final value is calculated, it reflects the most recent representation of the ever-changing automobile market.
Who uses blue book values?
Anyone with an interest in buying and selling vehicles can use resources like Kelley Blue Book and NADA. The NADA, which stands for National Automobile Dealers Association, is made up of car dealers around the nation. Dealers use blue book values daily as do auto auctions, banks, car rental companies, and many others. Another group that uses blue book values is car title lenders like Embassy Loans. The company uses blue book values to establish how much individuals can borrow when they use their cars as collateral.
Protect Yourself Using a Blue Book Resource
If you are considering buying or selling a car or using a vehicle to take out a car title loan, you can protect yourself by knowing the estimated value of your car. Look it up in the most recent publication of the blue book, so you are prepared. If you are looking to borrow a few thousand dollars using your car as collateral, you must know how much the car is worth to see if the loan is even possible. If a potential buyer offers you several thousands of dollars less than the blue book value of your car, you probably do not want to do business.