by Patrick Sills

Created on: April 14, 2010   Last Updated: April 15, 2010

The Kelley Blue Book has been the definitive source for consumers and auto retailers alike to assess used car values for many decades. Put simply, this reference serves as an excellent guide to determine just what that used car is worth. So just how does the Kelley Blue Book value preowned cars?

There are many factors to consider when placing a monetary value on a used vehicle. Some are quite obvious; such as the car's age and how many miles are showing on the odometer. But did you know that location plays a role as well? When researching this source online, one of the first things you'll be asked to do is to enter your zip code. Here's why: There will be different values placed on certain types of vehicles based on geographic location. For example, a 4-wheel-drive SUV will be more valuable in a place such as upstate New York where snowy and icy roads are common than somewhere like Miami, Florida; where it's 80 degrees year around. Conversely, a sporty convertible will hold more value in a mild climate than it will in a place where your heater must be running full blast 7 or 8 months out of the year to avoid hypothermia.

Perhaps the biggest factor of all is the car's condition. Many people like to believe their vehicles are in excellent shape, and thus they will expect top dollar based on this assumption. However, the Kelley Blue Book states that less than 5% of used cars will actually fall into this category. In order for a used car to be classified as Excellent, some rather tough criteria must be met. It must still look as it did when it rolled out of the showroom; with no physical defects; such as chipped paint or scratches. No body work has been done. The engine compartment has to be so clean that you could eat off of it, and no fluid leaks can be present. All service records must be up-to-date and substantiated.

As a consequence, the vast majority of well-kept used cars will instead fall into the "Good" category. A car will still have little or no physical defects; save for minor blemishes. The vehicle title must be clean with no salvage history. The tires must match and have acceptable tread left on them. Generally, cars labeled as "Good' will need a minimal amount of reconditioning to be re-sold.

Finally, we have those listed as being in "Fair" condition. These cars will have some mechanical and/or physical defects. A major maintenance service may be needed; such as a timing belt change. The paint and body may have a few minor rust spots, but still be repairable by a professional body shop. The tires may be worn. Basically, "Fair" cars are in need of some work, but are still drivable.

If a particular car is in bad enough shape to be classified as being in "Poor" condition, the Kelley Blue Book will not place a value on it because it becomes difficult to assess just how much work would be required to recondition it to an acceptable state. Therefore, they will only provide approximate values for cars in either Excellent, Good, or Fair condition.

When trading in or selling a used car to a dealership, some will give you the exact Kelley Blue Book valuation while others will not. This will largely depend on whether or not the car you intend to trade it for has been marked down in any way. If it has, then there goes your trade value!  Nevertheless, in such instances, the Kelley Blue Book still serves as an initial reference point in getting the numbers rolling; so to speak.

Regardless of which side of the salesperson's desk you're situated at, the Kelley Blue Book is an invaluable tool.

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