The Invoice price is the price the manufacturer charges its dealers for a new vehicle, but it does not necessarily reflect the total price actually paid by the dealer for the vehicle. The Invoice price includes destination charges, but doesn't include dealer advertising costs or costs for selling, preparing, displaying or financing the vehicle. Also, Invoice price does not include factory-to-dealer incentives and other factors which can reduce what the dealer pays for the vehicle.

Source: OEM

In vehicle leasing, the Kelley Blue Book® Residual Value is Kelley Blue Book's forecast of a vehicle's future market value. In particular, the residual value is used to establish the value of a vehicle at the end of its lease term. Lease terms usually range between 24 and 60 months.

Updated weekly, the Kelley Blue Book® Fair Purchase Price for new cars is generally the midpoint of the Fair Market Range. It is Kelley Blue Book's estimate of what a consumer can reasonably expect to pay this week in their area for a new vehicle configured with their selected options, excluding taxes, title and fees. It's based on actual new-car transactions, plus data from other reliable third-party sources as well as market conditions.

Source: Dealership Retail Sales Transactions

The Fair Market Range for new cars is 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 and fees. Each dealer sets and controls its own pricing.

Source: Dealership Retail Sales Transactions / Economic Data / Consumer Search Analytics / OEM Incentive, Production, Search Data

The Kelley Blue Book® Trade-in Value is Kelley Blue Book's estimate of what a consumer can expect to receive from a dealer for a trade-in vehicle assuming an accurate appraisal of condition. This value will likely be less than the Kelley Blue Book® Private Party Value because the reselling dealer incurs the cost of safety inspections, reconditioning and other costs of doing business.

Source: Auction Sales Transactions / Trade-In Marketplace Offers / Dealership Appraisals

The Trade-In Range is 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.

Source: Dealership Retail Sales Transactions / Auction Sales Transactions / Trade-In Marketplace Offers / Dealership Appraisals

The Kelley Blue Book® Suggested Retail Price is representative of dealers' asking prices. It assumes that the vehicle has been fully reconditioned and takes into account the dealers' profit and costs for advertising. The final sale price will likely be less, depending on the car's actual condition, popularity, warranty and local market factors

Source: Online Vehicle Listings

Updated weekly, the Kelley Blue Book® Fair Purchase Price for used cars is generally the midpoint of the Fair Market Range. It is 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. It's based on actual used-car transactions, plus data from other reliable third-party sources as well as market conditions.

Source: Dealership Retail Sales Transactions

The Fair Market Range for used cars is 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.

Source: Dealership Retail Sales Transactions / Auction Sales Transactions / Economic Data / Consumer Search Analytics / Online Vehicle Listings / Trade-In Marketplace Offers / Dealership Appraisals

The Kelley Blue Book® Certified Pre-Owned (CPO) Price is representative of dealers' asking prices for a used car covered by the automaker's CPO program. It includes certification program costs, dealer profits and retail costs. The CPO sales price will depend factors such as the car's actual condition, popularity, warranty and local market factors.

Source: Dealership Retail Sales Transactions

The Kelley Blue Book® Auction Value is Kelley Blue Book's estimate of what a vehicle is expected to sell for at a wholesale auction. It assumes the seller has properly disclosed the condition of the vehicle. It does not include buyer's fees or the buyer's transportation costs and assumes the vehicle has not yet been fully reconditioned, inspected, and prepared for retail sale.

Source: Auction Sales Transactions

The Kelley Blue Book® Lending Value is Kelley Blue Book's benchmark value for wholesale and retail lenders. Based on the Kelley Blue Book® Auction Value, the Kelley Blue Book® Lending Value assumes that the vehicle is in good or better condition, fully reconditioned, inspected, and prepared for retail sale.

Source: Auction Sales Transactions

The Kelley Blue Book Instant Cash Offer is an actual offer for the customer's car based on the car's specific features and condition. The Offer is valid for 72 hours and redeemable today at your dealership once the car's condition and features are verified.

There may be instances where the Kelley Blue Book Instant Cash Offer and the Kelley Blue Book Trade-In Value vary. The Kelley Blue Book Trade-In Value is typically the mid-point of the Trade-In Value Range, which is a range of values for similar vehicles of the same year, make, model, style and general condition. In some cases, there could be hundreds or even thousands of similar vehicle configurations that are used to determine a Trade-In Value Range for similar cars.

On the other hand, the Instant Cash Offer is a quick and easy way for the customer to trade in or sell a car without having to negotiate, though they sometimes may choose to do so. There's probably only one car with the customer's specific car's exact combination of mileage, installed options, and precise condition, considering both mechanical and physical conditions like scratches, dings and dents. Also, unlike the Trade In Value, the Instant Cash Offer lets the customer choose to use the Offer toward the purchase of another vehicle or walk away.