Is KBB Value Accurate?

Do insurance companies pay fair market value?

The market value of your car is determined by your insurer using industry guides.

The valuation is one factor used to determine the premium on your policy.

This amount may be significantly different from the “market value” detailed on your insurance policy, as most vehicles depreciate in value as time goes by..

Should you pay more than Blue Book value for a car?

So no, it is not normal to pay only $1000 to $3000 over blue-book or trade-in value. It is normal to pay more than that, because dealers won’t sell their trade-ins for such a low markup. … That doesn’t mean that Slick Sam’s used cars have a much lower markup.

What is Black Book trade in value?

The Black Book is what dealerships typically use to lookup pricing information about new, used car, truck, and recreational vehicle prices. Black Book updates the Dealer invoice and Manufacturers Suggested Retail Prices (MSRP) weekly. Dealers also use the Black Book loan values for finance purposes.

Is Kelley Blue Book or Edmunds more accurate?

Many experts believe Edmunds’ values are more accurate than KBB’s. … NADA pricing is often higher than Kelley Blue Book since the algorithm has a standard that calls for all trade-ins to be in very clean condition. As a result, you may need to adjust NADA prices down.

Why do dealers charge more than Blue Book?

Dealers use the window sticker price — which may or may not be the Blue Book suggested retail price — as a tool to get buyers to start the negotiation at the highest possible value. In most cases, if the dealer sells the car at the sticker price, the profit will be much higher than normal.

What is the difference between Blue Book and Black Book Value?

The Blue Book is a consumer driven book, where drivers can look to see what they can expect to pay or receive for their vehicle. The Black Book on the other hand, is a dealer driven book. The pricing deals with wholesale values and the most up to date car sales.

Which car value site is best?

Kelley Blue Book (KBB) Kelley Blue Book is one of many tools, along with the Black Book, used by car dealers to research and determine car values for their inventory. In general, you’ll find that the Kelley Blue Book values are similar to those provided by Edmunds.

What is NADA suggested price?

MSRP: MSRP is the base Manufacturer’s Suggested Retail Price at the time of introduction, including standard equipment only and excludes taxes, transportation and destination. Suggested List Price: The value listed reflects the approximate price of the unit when it is brand new.

Does insurance pay KBB value?

While it is a reasonable assumption to make, the insurance company does not use Kelley Blue Book to determine the value of your car. Insurance companies use an independent company to evaluate the value of your car. … They will also look at other details of your car that might determine how much your car is worth.

Can you negotiate trade in value?

Negotiate. “Come into the dealership with a good idea of what your vehicle is worth and what you’d be willing to settle for,” said DeLorenzo. Dealers will often make a low offer, expecting you to negotiate up. But you shouldn’t take less for your trade-in than what an industry guide says it’s worth.

Is KBB a reliable source?

With over 90 years of experience, KBB is the most trusted source of vehicle pricing information. Also, TRED establishes trust with buyers by committing to a 150-point inspection to ensure the vehicle’s condition. That’s why, on TRED, you can expect to get 30% more than a dealer trade in and 12% more than on Craigslist.

Do dealerships use NADA KBB?

Kelley Blue Book and Edmunds are two of the most well known used car pricing guides in the United States. There is also another: NADA—but, NADA is usually used by banks or car dealers to show you an inflated price value.

What Blue Book value do insurance companies use?

Kelley Blue BookInsurance companies use Kelley Blue Book as a reference but will set their own policies as to which values they use. My car is more than 21 years old. How do I find its value? Kelley Blue Book provides values for used vehicles up to 21 years old.

How much is a car worth when totaled?

To get an idea of what your totaled car is worth, find the Kelley Blue Book value for it in fair condition. Figure out what the 20 to 40 percent fair condition value is. Depending on the amount of damage done to your vehicle, it’s likely going to be closer to the 20 percent range, according to CarBrain.

What is excellent condition for KBB?

Excellent condition means that the vehicle looks new, is in excellent mechanical condition and needs no reconditioning. This vehicle has never had any paint or body work and is free of rust. The vehicle has a clean Title History and will pass a smog and safety inspection.