by Tenebris

Created on: June 24, 2008   Last Updated: November 07, 2008

When it comes time to buy a used car or sell an old one, buyers and sellers across the United States rely on the Kelley Blue Book and the Black Book.

The roots of the Kelley Blue Book date right back to the dawn of the automotive industry, when Les Kelley first distributed Kelley's Cash Price List to other dealers and banks in 1918, listing the cars he wished to buy for resale and how much he was willing to pay for them. Gradually these dealers began to request this list for their own use, until in 1926, Kelley first consolidated the ever-growing list into a "Blue Book of Motor Car Values", the direct ancestor of the modern Kelley Blue Book. Today, one out of every three car purchasers in the United States has consulted the Kelley Blue Book webpage (www.kbb.com), which is a free on-line service supported solely through advertising revenue.

The Kelley Blue Book lists market value prices on new and used cars, as well as recreational vehicles, motorcycles, personal watercraft, and snowmobiles. Specifically for new cars, the Kelley Blue Book lists three separate pricing criteria: the manufacturer's recommended retail price (MSRP), the dealer invoice price (wholesale), and the New Car Blue Book Value (what others have negotiated for a new car of this type). Specifically for used cars, the Kelley Blue Book lists the standard retail price, the car's trade-in value, and what cars of this model have actually been selling for. Its continual meticulous research in these areas makes the Kelley Blue Book the gold standard in its field.

The Black Book is a relative latecomer on the car sales scene. Its publisher, National Auto Research, was founded in 1955 by three businessmen who had begun to keep track of weekly vehicle auction prices. When other dealers began to request these records for their own use, the three began to publish their records as a weekly valuation update. Today, the Black Book has moved fully into the wireless era, offering paid Internet subscriptions and datafeeds for everything from Smart Phones to Blackberries (www.blackbookusa.com).

Unlike the Kelley Blue Book, the Black Book focuses entirely on the wholesale end of vehicle transactions, offering frequent updates on invoice pricing and dealer auction prices. Printed data turnaround is within ten days, while electronic information is updated daily.

While the Black Book is of great use to dealerships, it will likely be of interest to the general public only insofar as its information can be combined with that of the Kelley Blue Book to give an indication of dealer gross profit on a particular make, year, and condition of vehicle. However, since the Kelley Blue Book also offers a wholesale price for comparison (dealer invoice price), even this consumer use is somewhat limited.

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