Every month of people rely on Kelley Blue Book’s data to give them an accurate valuation of their vehicle. This vehicle valuation research company has been around for more than 90 years and is considered one of the most trusted sources when it comes to automotive pricing.
Today, the company has evolved with the times and they now have a website that not only lets you see the valuation of your car but also allows you to calculate how much a certain car would cost to own over a five year period. Because of its usefulness, the website accumulates an impressive amount of traffic on a daily basis.
Even though millions of people – including car dealers – trust Kelley Blue Book more than any other car valuation company, some people are still skeptical about how accurate this company’s data truly is.
So, are Kelley Blue Book’s numbers accurate? Keep reading to find out how this iconic vehicle valuation service gets its data.
When was Kelley Blue Book established?
In 1926, a car dealer, named Les Kelley and his brother, Buster, created a book that listed several different cars that he would like to one day buy for his car lot and what he was willing to pay. The book had a comprehensive, detailed list of why he was willing to pay those prices. After the book started to gain popularity, many people would visit his dealership every day in order to get their car appraised by him.
By the 1960s, the Kelley Blue Book was considered to be one of the most comprehensive valuation books available because it was the only one that took a car’s mileage into consideration when figuring up the value of the car. Soon, the book was gaining even more popularity due to the fact that it was also adding in the valuation of other vehicles, such as motorcycles, ATVs, and even snowmobiles.
Up until 1993, the book was used primarily by car dealers. But then, the Kelly brothers decided to market the book as a consumer guide. And in 1995, they created kbb.com to give their customers a more user-friendly way to find the value of a car.
What kind of information does Kelley Blue Book provide?
Kelley Blue Book can tell you how much your car is worth. By knowing key information about your car, you will be able to get a better estimate of your car’s value. The book’s price valuation is actually able to give you a good idea of what your car is worth based on a few different specific criteria, such as the age of your vehicle and how many miles are on it.
KBB gives you the price valuation for a new, used, and certified pre-owned vehicle. With this information, you will be able to also find out how much money you are likely to get if you were to trade-in your car at a dealership. Or get a rough estimate of how much it would cost to buy a car from a private dealer.
It is important to note that all of the prices that are listed in the Kelley Blue Book are for the United States only. People from Canada and other countries may not find the valuations to be as accurate.
How does Kelley Blue Book get its data and information
KBB employees a team of about 200 statisticians and researchers. Every day, the KBB employees review the prices of different vehicles and see what they are selling for at dealerships, auctions, and private sales.
The price is then combined with other information, such as location, historical trends, and seasonal expectations. All of the combined data is then analyzed by using the KBB algorithm to provide consumers with a close estimation of what a certain car is worth.
Kelly Blue Book has been used for several decades. Some dealerships choose to use other sources to figure out the value of a vehicle. But as far as most consumers are concerned, there is no automobile valuation company that is more reliable and accurate than the Kelley Blue Book.