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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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.

Play Video

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.

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

Valuations Definitions

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.

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.

Kelley Blue Book^® Fair Market Range (Certified Pre-owned)

Based on dealers’ asking prices, the Fair Market Range is Kelley Blue Book’s estimate of what a consumer can reasonably expect to pay this week for this year, make and model Certified Pre-Owned vehicle with typical mileage and configured with their selected options, excluding taxes, title and fees. Each dealer sets and controls its own pricing.

Kelley Blue Book^® Fair Market Range (New Car)

Kelley Blue Book’s estimate of what a consumer can reasonably expect to pay this week in their area for a vehicle configured with their selected options, excluding taxes, title, fees and any available rebates or incentives. Each dealer sets and controls its own pricing.

Manufacturer Suggested Retail Price (MSRP)

The MSRP, or Manufacturer’s Suggested Retail Price, is the price set by the manufacturer. MSRP includes destination charges and minimum required equipment, but excludes service and handling fees and state and local tax, title and license fees. MSRP is a reference point for negotiations, however dealers can choose to sell a vehicle above or below its listed MSRP.

Valuations Definitions

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.

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.

Kelley Blue Book^® Fair Market Range (Certified Pre-owned)

Based on dealers’ asking prices, the Fair Market Range is Kelley Blue Book’s estimate of what a consumer can reasonably expect to pay this week for this year, make and model Certified Pre-Owned vehicle with typical mileage and configured with their selected options, excluding taxes, title and fees. Each dealer sets and controls its own pricing.

Kelley Blue Book^® Fair Market Range (New Car)

Kelley Blue Book’s estimate of what a consumer can reasonably expect to pay this week in their area for a vehicle configured with their selected options, excluding taxes, title, fees and any available rebates or incentives. Each dealer sets and controls its own pricing.

Manufacturer Suggested Retail Price (MSRP)

The MSRP, or Manufacturer’s Suggested Retail Price, is the price set by the manufacturer. MSRP includes destination charges and minimum required equipment, but excludes service and handling fees and state and local tax, title and license fees. MSRP is a reference point for negotiations, however dealers can choose to sell a vehicle above or below its listed MSRP.

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.

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

Aggregated New & Used Vehicle Transactions

Aggregated new vehicle transactions from new vehicles sold within a weekly timeframe
Aggregated used vehicle transactions from vehicles sold within a weekly timeframe

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