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What Factors Into Valuation?

The Kelley Blue Book® team looks at valuations for the entire lifecycle of any vehicle in a way that is unique in the automotive industry. Understanding vehicle valuations fosters a more productive conversation about pricing and we believe that transparency about our approach helps build trust.
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Valuation is a term that refers to the guidance associated with the vehicle in a particular category. For example, a Typical Certified Pre-Owned (CPO) Asking Price represents the dealer's asking prices for a used vehicle covered by the automaker's CPO program.
The categories for each vehicle value type

The guiding principles for vehicle valuations of Kelley Blue are to remain neutral to the transaction by providing timely and local values. These values help remove friction from the sales process by easing the online to dealership experience.

Valuations Definitions

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KELLEY BLUE BOOK® TRADE-IN RANGE

Kelley Blue Book's estimate of what a consumer can reasonably expect to receive this week based on the style, condition, mileage and options of the vehicle when they trade it in to a dealer. However, every dealer is different and values are not guaranteed.

Side view of a white 4-door Honda Accord

KELLEY BLUE BOOK® FAIR MARKET RANGE (USED CAR)

Kelley Blue Book's estimate of what a consumer can reasonably expect to pay this week in their area for this year, make and model used vehicle with typical miles and configured with their selected options, excluding taxes, title and fees, when buying from a dealer. Each dealer sets and controls its own pricing.

Side view of a white 4-door Honda Accord

KELLEY BLUE BOOK® FAIR MARKET RANGE (NEW CAR)

A game-changing innovation, Kelley Blue Book launches KBB.com. New-car prices introduced first, then used car values in 1996. 20,000 visitors a month used KBB.com. KBB.com becomes the most visited automotive website in 1997.

Side view of a white 4-door Honda Accord

MANUFACTURER SUGGESTED RETAIL PRICE (MSRP)

Kelley Blue Book launches the Kelley Blue Book Mobile App helping customers determine their current vehicle's worth, check prices for their next one, or find a local dealer.

Analytics Provide Relevant Value

Kelley Blue Book data scientists use quantitative and qualitative analytics to give you the most relevant value for a vehicle. They also use predictive analytics and industry and field analysts to review trends and forecasts so you get up-to-date information.

The Principles Behind Valuations

The Kelley Blue Book® Price Advisor uses data from many of these sources on a weekly basis. That's how you get the market reflective price range for any fully configured vehicle.

Kelley Blue Book® Fair Market Range

The foundation for the Kelley Blue Book® Fair Market Range is based on actual weekly transactions in your local area captured as part of a comprehensive view of the market. Having weekly market reflective data for any vehicle gives you confidence that you are getting a fair price.

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Below are examples of some of the data points reflected by the marketplace that impact the Kelley Blue Book® Price Advisor

Local Geographic Data
  • Actual vehicle transactions from the 101 regions
New and Used Vehicle Transaction Data
  • Data from actual sales transactions
  • Market trends and pricing patterns
  • Regional variations in vehicle values
Mileage, Color, Age, Condition and Demand
  • The actual mileage of a particular vehicle may affect its value
  • Color may influence price due to demand
  • Age of vehicle will influence its value
  • Condition affects the vehicle value; the better the condition, the higher the value
  • Demand of a certain make and model will influence the vehicle's value
Economic Variables
  • Variables like fuel cost, regional economic factors and season all affect the value of a vehicle