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Old 06-07-2018, 06:50 AM   #41
Tcoat
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Quote:
Originally Posted by rvoll View Post
The KBB/Edmund's data is from dealers only -- not private transactions. The dealers they use are major dealers who guarantee your purchase. People are willing to pay a premium when they buy from a major dealer. Remember that these services sell their primarily to dealers so they tailor their data to them. Private sellers can't get what dealers get -- not only because of guarantees they provide, but because they offer financing. Financing allows dealers to ask for a higher price and also allows them to get added profit by providing the financing. Remember that most large dealers are required to inspect the used cars they sell as part of their state license to sell those cars. So I repeat, the averages you see on KBB are much higher than you can get from a private sale.
Wrong

How are Kelley Blue Book Values Established?
Beginning with the basic new vehicle information from the manufacturer, each and every day, Kelley Blue Book receives real-world new car prices and used car prices from actual transaction information. The following sources make up the bulk of a typical year in used car purchase information and feed the base of data our experts analyze:

Wholesale Auctions
Open exclusively to the trade, representatives from dealerships and wholesalers bring vehicles to the auction to trade or sell and they purchase other vehicles they think will sell at their store. Auctions receive their vehicles from dealers, rental agencies, fleet owners, off-lease vehicles owned by financial institutions and manufacturers' demos and promotional vehicles.
Kelley Blue Book representatives audit these auctions on a regular basis to gather a better understanding of what the highest possible "actual cash value" of a given used vehicle will bring at auction.

Independent Dealers
These are the dealerships you see every day that are selling used vehicles only. These dealers sell used vehicles to auctions, consumers and wholesalers.
Franchised Dealers
These are specifically branded new car dealerships authorized by the respective manufacturer such as Honda, Ford, etc. These dealers sell used vehicles to both auctions and consumers.
Rental & Fleet
Rental fleets usually send their cars to auction after one year of service, but have extended that usage in recent years.
Original Equipment Manufacturers (O.E.M.s)
The manufacturers (such as Honda, Ford, etc.), bring used vehicles to auction after they have utilized them as employee cars, promotions or other company distribution.
Financial Institution Lessors
When you lease a car, the bank owns it and you rent the use of the vehicle. After the term of the lease is complete, these pre-owned vehicles are either sold back to the lessee or directly to a dealer at auction. Financial institutions also trade and sell repossessed cars and trucks.
Consumer Private Party Transactions
Kelley Blue Book tracks consumer sale prices each year.

How are the Final Values Determined?
Used values are determined by a proprietary editorial process. This process starts with a thorough analysis of all collected data along with historical trends, current economic conditions, industry developments, seasonality and location. The resulting values reflect the most current representation of a changing marketplace and are therefore relied upon by a variety of leading organizations as well as the average consumer.
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