Car buying: what is different between kelly blue book and retail?
I wish I knew more about this!
This is what I found with a google search of your question.
About Kelley Blue Book® Values
For over 90 years, Kelley Blue Book has been The Trusted Resource for used car values, helping car owners understand what their used car is worth. Depending on the method of disposal, there actually may be more than one Blue Book Value for the consumer’s car, truck or SUV. The Kelley Blue Book Trade In Range shows what a consumer can expect to receive for their car this week when trading it in at a dealer. The Kelley Blue Book Private Party Value reports on a fair price when selling the car to an individual instead of doing a dealer trade in. Our Values are the results of massive amounts of data, including actual sales transactions and auction prices, which are then analyzed and adjusted to account for seasonality and market trends. Kelley Blue Book Values reflect local conditions in over 100 different geographic regions and are updated weekly to give consumers the most up-to-date used car pricing information.
There has always been much confusion when it comes to car pricing. I’ll never forget my very first brand new car, that Toyota I paid FULL sticker price on, not knowing I could negotiate the price!
That hard life lesson taught me to always negotiate and research pricing. KBB is just one source of pricing both new and used cars. Others include NADA etc. Which is better? Usually depends if you’re the buyer or the seller!
If you’re trading your car in, you want the highest value for it while the dealership wants to only give you the lowest possible value, the “trade-in” value. They also want to make you pay the full retail value for their car.
You will often hear the terms “retail to retail” or “wholesale to wholesale.” What that means is, if you want the highest amount for your trade, the dealer will expect you to pay the most for their car. If you want the lowest price on the new car, they will not want to give you as much on your trade.
Some new apps will actually show you if local cars for sale are bad, good or great deals. One of the best things is to actually search for cars in your area and compare prices.
Lastly, remember to negotiate! And, don’t let the last step, the finance department, talk you into unneeded extended warranties or other coverages!