Definitions of Our Values

Definitions of Our Values

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.

Source: OEM

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

Formerly known as Suggested Retail Price, the Kelley Blue Book® Typical Listing Price is representative of dealers’ asking prices for a used car. It assumes that the vehicle has been fully reconditioned and has a clean title history. This price also takes into account the dealers’ profit, costs for advertising, sales commissions and other costs of doing business. The final sale price will likely be less, depending on the car’s actual condition, popularity, type of warranty offered and local market factors. In other words, it's the price you should expect a dealer to ask - not always the price you should pay.

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.

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

Updated weekly, the Kelley Blue Book® Fair Purchase Price 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 vehicle that has been Certified Pre-Owned (CPO) according to standards set by the manufacturer with typical miles and configured with the consumer's selected options. It includes CPO certification costs, dealer profits and retail costs but excludes taxes, title and fees. The actual sales price will depend on factors such as the car's actual condition, popularity, warranty and local market factors.

Formerly known as the Certified Pre-Owned (CPO) Price, the Kelley Blue Book® Typical Listing Price (CPO) is representative of dealers' asking prices for a used car covered by the manufacturer's warranty in its CPO program. It assumes that the vehicle has been fully reconditioned and has a clean title history. This price also takes into account the dealers' profit, costs for advertising, sales commissions and other costs of doing business, while also factoring in any value associated with the CPO program. For most vehicles, CPO coverage typically increases market value between $1,000 and $2,000. The final sale price may vary according to the vehicle's actual condition, popularity, type of warranty offered and local market conditions. In other words, it's the price you should expect a dealer to ask - not always the price you should pay.

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 BookSM Instant Cash Offer is what Kelley Blue Book is willing to offer for a consumer's vehicle based on the vehicle's specific features, condition and other market factors. The Offer is valid for 3 days (not counting Sunday) and redeemable at a Participating Dealership once the dealer verifies the car's condition and features.

There will 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 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 Range for similar cars.

On the other hand, the Instant Cash Offer is a quick and easy way for the consumer to trade in or sell a car without having to negotiate, though they sometimes may choose to do so. There's probably only one specific car with the 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 consumer choose to use the Offer toward the purchase of another vehicle or walk away with a check.

The Kelley Blue Book® Private Party Value is the starting point for negotiation of a used-car sale between a private buyer and seller. This is an "as is" value that does not include any warranties. The final price depends on the car’s actual condition and local market factors.