Quick Answer: Why Do Dealers Charge More Than Blue Book?

Do dealers go by Kelley Blue Book?

Car dealers use Kelley Blue Book used vehicle pricing information to set used car prices and values.

The different prices provided in the Blue Book can be used by a dealer as a negotiating tool to get you to pay more for a car, or it can be used by you to get a lower price..

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.

What does KBB fair purchase price include?

What is the Kelley Blue Book® Fair Purchase Price? Fair Purchase Price reflects the price consumers are typically paying for this vehicle. The Fair Purchase Price is regionalized based on actual new-vehicle transactions collected from across the country and adjusted regularly as market conditions change.

Is KBB fair purchase price accurate?

They also derive sale prices from major weekly auto auctions. By having such a broad band of information to pull from, KBB has indeed positioned itself as the most accurate and authoritative evaluation price guide whose numbers compare favorably with the real world. However there are problems with any price guides.

What car loses its value the fastest?

The fastest depreciating cars on the market todayNissan Leaf. The Nissan Leaf Electric Hatchback is one of the biggest depreciators of them all due to rapidly-aging EV technology. … Chevrolet Volt. … Mercedes Benz S Class. … BMW 7 Series. … BMW 5 Series. … Mercedes Benz E Class. … XJL. … Chevrolet Impala.

Can a dealer charge more than MSRP?

Yet, some dealerships will sell the same models to inexperienced consumers for thousands of dollars more than MSRP. In most instances, dealerships violate the law when they overcharge consumers for new cars. … But, it is a violation of credit disclosure laws to charge a higher cash price for a vehicle because of credit.

What is a KBB instant cash offer?

The Kelley Blue Book® Instant Cash Offer is a real offer for a specific amount to purchase a consumer’s car or apply the amount toward another car. The Offer is valid for 7 days and can be immediately redeemed during business hours at any Participating Dealer, pending inspection.

How much below MSRP is dealer invoice?

The total invoice cost on a vehicle typically ranges from several hundred to several thousand below its sticker price. For example, a midrange 2018 Honda CR-V with a $30,000 sticker price may have an invoice that’s around 7 percent lower, or about $27,900.

Should I sell my car to CarMax vs dealer?

While the CarMax offer isn’t as much as you might get by selling it to a private party, selling it to the used car chain offers these advantages: It eliminates the expense of advertising your car and the hassle of showing your car to strangers. CarMax prices are usually higher than those that a dealer offers.

Does CarMax give you Kelley Blue Book value?

Use the CarMax price as the lower limit for what you will accept from the dealer. … If the dealer insists on low-balling you, you can always just sell the car to CarMax. Kelley Blue Book also offers an online service where you can get “instant” offers for your car from dealers.

How much is too much for a car?

Another rule of thumb says that drivers should spend no more than 15% of their monthly take-home pay on car expenses. So under that guideline, if your net pay is $3,500 a month, it’s best to avoid spending more than $525 on car costs.

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.

Which is more accurate Kelley Blue Book or Edmunds?

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.

What should you not say to a car salesman?

10 Things You Should Never Say to a Car Salesman“I really love this car” You can love that car — just don’t tell the salesman. … “I don’t know that much about cars” … “My trade-in is outside” … “I don’t want to get taken to the cleaners” … “My credit isn’t that good” … “I’m paying cash” … “I need to buy a car today” … “I need a monthly payment under $350”More items…•

How much can dealers go below MSRP?

Many dealers will easily settle for a $1500 to $2500 profit. If they do, and you purchase the vehicle correctly, you will be well below dealer invoice! Your awareness of these hidden savings combined with using the right online “car pricing services” can put this money into your pocket – not theirs.

How much will a dealer come down from MSRP?

Sometimes the dealer will post an “Invoice” price for the vehicle underneath the MSRP and use this as a selling point. “Look at the invoice price,” says Frank, of Bayside Toyota. “We’re only making a few hundred dollars selling you this car at this price, and plus, you’re getting almost one thousand dollars off MSRP.”

Does CarMax pay Blue Book value?

CarMax sets their own used car values… so you can’t anticipate an offer by exploring Kelley Blue Book, eBay, Craigslist, etc. If the car has high mileage or is over 10 years old, don’t bother trying to sell it. You’re basically guaranteed to get a better offer elsewhere.

Is Kelley Blue Book out the door price?

No, the KBB values are just for the car. Fees and taxes are extra.

How much can you typically negotiate on a used car?

If you’ve discovered that the used TMV for that car is actually $12,000 (dealer retail), you can start by offering a bit under TMV: say, $11,700. Don’t worry if the salesman acts insulted; it’s just part of the negotiation process. Starting lower leaves you some wiggle room to negotiate.

What book value do insurance companies use?

Depending on your insurance company, they may average the values or give you the highest value available. Car insurance companies can use their own formulas for determining your car’s value, or they can use a site like Kelley Blue Book or NADA to determine your car’s value.

What does Black Book value mean?

Black Book is what dealers usually refer to when trying to figure out how much a used vehicle or trade in is worth. Black Book originally began in 1955 literally as a black book containing weekly car values for every vehicle and every region in the country.