Are you considering trading in your old car to the dealer of your new car? If so you should get yourself familiar with one of the methods to determine the value of your old car. This is part of doing your homework to make sure you are in control and informed. This step alone can save you hundreds or thousands of dollars and keep you from getting scammed by the car dealer.
The Blue Book Value
The Blue Book value is a slang term used in the car business. The Blue Book is actually Kelly Blue Book. Kelly Blue Book is a guide that keeps track of buying and selling in the car industry. Kelly Blue Book is a guide that will place a value on your used car. They can provide a price for wholesale or Trade-in (the price a dealer would pay), Private Party (a price it is worth selling to a private party, with no dealers involved) and Retail (the price a dealer would sell the car for).
How I Find Blue Book Value
There are multiple ways for a car dealer to come up with a value of your car. One way is that they base the value on similar cars they have traded in and sold. Another way is what similar cars have sold for at an auction recently, some call it Black Book. Two of the most popular are Kelley Blue Book and the N.A.D.A. Appraisal Guides.
The Kelley Blue Book, which coined the term Blue Book, is a source for determining the loan value on used cars. It has been providing information for 78 years. www.KBB.com
The N.A.D.A. Appraisal Guides, which was established in 1933, is another helpful Blue Book that provides car buyers to review the car’s worth. Many banks and financial institutions use NADA guide for loan values. www.NADA.com (NADA=North American Dealers Association)
How Blue Book Works
The Kelly Blue Book calculates the value of your car based on the condition, make, model and year. They also take other used car factors into consideration such as mileage and options. They provide user-friendly worksheets to help determine the appropriate value of a used car. Being aware of the Blue Book value of your car would help you search for a fair deal. In all fairness, the Blue Book is a guide and there are local factors that can change the value of your car.
What To Consider Besides Blue Book
When your are going to buy a used car, you should first determine how much money you want to spend. Don’t forget the additional expenses such as the sales tax, dealer documentation charge, license plates, title and insurance when applying for a car loan.
Who Uses Blue Book to Determine Values
The Blue Book is very widely used by dealers, banks, car auctions, private owners, rental companies, fleet owners, franchised and used car dealers all use the Blue Book as a guide to determine the value.
The Blue Book used car values are compiled from the collected data which include the current market conditions, the historical factors, seasonality, location, gas prices, and auto industry changes. The values reflect the current used car market.
Do your homework when buy or trading in a used car. This will put you in the driver seat and keep you from being the target of a scam. Spend a little time checking Kelly Blue Book and NADA Guides for some helpful pricing guidelines when buying a used car.
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