KELLEY BLUE BOOK (KBB) CAR VALUES: ACCURATE? RELIABLE? CAN I TRUST IT? The Homework Guy Kevin Hunter

[Music] what's up with Kelly blue blue are the numbers any good the simple answer is yes but the information you need is well hidden from the average car buyer today you're gonna learn how to use Kelley Blue Book to your advantage and stop dealers from making a fool of you with automotive book value hi I'm Kevin hunter also known as the Homer guy and a throb is that the best you can do this video brought to you by YouTube's best channel on car buying and selling courtesy of the Homer guy team and our super high intensity training for car buyers if you love what you learn here today check out the merchandise shelf down below and get yourself one of these cool shirts or hoodies like this one it's widely believed that Kelly Blue Book numbers are no good and for the average car buyer that's exactly right however that is not to say that there isn't good information to be found if you know where to look today by special requests from our viewers we are taking a deeper dive into Kelly blue and showing you how to find the hidden information when you know what you're looking for you know what to expect and that information is powerful let's start with the rumor that Kelly Blue Book is owned by dealers actually it's not Kelly sold out to a company known as Cox automotive in 2014 a subsidiary of Cox Enterprises you might wonder why a company like Cox automotive would want Kelly Blue Book in the first place and why they'd want it under their umbrella but it's quite simple and perhaps a little devious let me explain in 2015 the Cox automotive business unit divided its brands to include four US businesses which include auto auctions wholesale services financial services media and software you've probably heard of Manheim the big dealer auto auction yep that's Cox Automotive - when people say Kelly has bad information that's quite funny because the company putting out Kelly Blue Book values is also the company with direct access to the biggest dealer auctions in the country they have real-time information any day of the week but that's not the whole Cox automotive story ever heard of deal shield or go automotive exchange Manheim Global trader and ready logistics maybe not but what about auto trader dealer track VinSolutions yep customers all over the country use auto trader and every dealer employee will tell you that dealer track and VinSolutions are part of their daily life on the car lot all of it is Cox automotive - you encounter a part of Cox automotive when your car shopping when you book out your car when you visit the dealership and when you go down to that nasty finance office from start to finish they've got you there's many more parts of the company I could name but if you wondered why there are so many programs and software packages under one roof well the entire system is designed to drive the customer traffic to dealerships anytime you interact with any of these companies you're being targeted in the attempt to set you up with a dealership car dealers are such good people that just sounds awesome doesn't it you should understand by now that Kelley Blue Book became just one more service that Cox automotive could use to drive you to the dealership they have no problem confusing you with their information because the goal isn't to get you good info the goal is to get you to show up on the car lot when you arrive at the dealership it's up to the dealer to convert you the lead into you the customer and while you here the dealer saying that Kelley is worthless they are using Cox automotive software programs including Kelly for everything else they do funny isn't it in the end you're disappointed with it all but you buy a car anyway and go home saying to yourself this process really sucks somehow Cox automotive thinks that works like it's good customer service or something what an interesting model huh imagine how much good they could do if they really wanted to help you now this doesn't mean that Kelly is it useful to you we just need to know where to look and how to read the information and in a moment we're gonna jump right into it first this short message from the homework guy team if you're a first-timer on the homework guide channel consider subscribing and leaving us a comment below add hashtag the homework I if you'd like to response directly from Kevin or one of the homework I staff members we're always glad to help our loyal followers best part is there is no charge you can also email the team at info at the homework I comm with a specific question or if you'd like a free contract review just blackout your personal information and send it to us we'd love to hear from you just be aware that we do get a lot of requests so just be patient while you wait for response back to you Kevin I book cars regularly and I've shopped Manheim auto auctions on several occasions I also assist on hundreds and even thousands of car deals every year and I can tell you that from my experience Kelly hits the numbers correctly in just three areas you can use Kelly but don't use anything but good condition numbers for trades and private party sales using good condition you can determine within a few hundred dollars what a dealer will offer you for your car by looking at the lo trade value yes that's a bummer isn't it yet that's the number you'll see on the auto auction Kelly just wants you to think about those higher numbers you know like the middle or the excellent condition so that you show up at a dealership remember it's about driving you to the dealer you can also approximate what you sell your car for private party by also using good condition and looking at the middle private party sale values lastly you can predict what a dealer will list the car for by using hi dealer retail and you notice there's no option for raising or lowering the condition of the vehicle dealers always want you to think that they have the finest cars on the planet and Kelly helps them sell that message by not giving you any option of saying the car is anything less than amazing interesting isn't it dealer gives you low trade and then charges the next customer high dealer retail and then rips them a new one in the finance office and then tells everyone that they're losing money on the deal they tell you this while they're sitting in a multi-million dollar facility just like a casino it's like a drug dealer telling an addict that's the best I can do since Cox automotive owns Manheim and Kelly Kelly has access to updated information directly out of the auto auctions here is how you decipher information to determine how much a deal are likely paid for any used car in their lot how much they're likely to offer you if you trade your car in how much you can hold out for on your trade if you're a tough negotiator and then what the dealer is likely to sell your vehicle for here we go with Kelly Blue Book how to use the numbers to determine the information that you need to know on today's exercise we're using a mix of high and low mileage vehicles you'll recognize some of this layout if you saw our video on how much a dealer pays for a used car because we shared some of this information there how ever there is going to be some new stuff here that you want to pay attention today even if you saw the previous video so the first vehicle we're looking at is a blue 2019 mazda cx-5 Grand Touring it has 14,000 370 miles on it dealer is asking 27,000 on this vehicle again looking at good condition trade value low they likely paid twenty one thousand eight forty eight to this vehicle when we add the five hundred dollar lot pack brings us the 22 348 adding the $1,250 reasonable dealer profit brings us to 23 598 this dealer has the vehicle listed at twenty-seven thousand dollars the dealer fat on this one above the reasonable profit is thirty-four hundred and two dollars so actual dealer profit on this vehicle is fifty-one hundred and fifty-two dollars the very skilled negotiator could have traded this vehicle in somewhere between the 23 591 which is KBB high trade number and the 2400 69 which is the KBB private low if you're very skilled negotiator you could have traded your vehicle for somewhere between those numbers we're going to use twenty three thousand eight hundred and thirty dollars is the maximum trade number you could have got for this if you just wanted to sit there for a while and stick to your guns let's jump to the next vehicle a black 2017 Toyota Tundra sr5 4-wheel Drive this is a higher mileage vehicle 112,000 267 of the miles on this dealer has it listed at 30,000 324 what the dealer likely paid using good condition kelley blue book trade low plus a hundred dollars is twenty three thousand two fifty two now we add in our five hundred dollar lot pack and brings us to twenty three thousand seven fifty two and a 1250 reasonable dealer profit brings us to 2500 two now you mentioned the dealer has this vehicle listed at thirty thousand three twenty-four the dealer fat beyond a reasonable profit is five thousand three hundred twenty two dollars so add up all the math and the dealer expects to make seven thousand a seventy two on this vehicle this is starting to get it really into the ointment class here for this unit very greedy now let's jump back really quickly to the Kelley Blue Book trade high on this vehicle and the Kelley Blue Book private low again these are in the good condition category the number that sits right between is twenty six thousand for fifth three now compare that to what the dealer's asking for the vehicle of 30,000 324 yeah they could have easily paid a trade of 26,000 453 to a really tough negotiator almost never happens but a really tough negotiator could have got this number on trade now here's a last example it is a great 2017 mercedes-benz GLA e350 4matic it has 36,000 470 miles on it the dealer has this listed at 36,000 798 now look here at what the dealer likely paid for this vehicle on KBB trade lobe plus 100 bucks brings their number to 27,000 to 2-0 are you seeing a problem here now we add in our $500 lot pack brings us to 27,000 728 1250 reasonable profit of 28,000 970 s so that's the number the dealer could go down to on this vehicle however there are a lot grittier than that they have 36,000 798 keep in mind that a typical dealer would sell this vehicle for $34,000 so this dealer gets the greedy dealer of the Week award three points on this one the dealer fat beyond a reasonable profit is seventy eight hundred twenty eight dollars and this dealer all things considered expects to make nine thousand five hundred and seventy eight dollars front end profits that's before finance before accessories before all of the extended warranties they expect to make almost ninety six hundred bucks on this vehicle so this is the own coin dealer of the week right here this 2017 Mercedes Benz now I want to jump back to the skilled negotiator on trade-in I said that the dealer very unlikely paid a dime over twenty seven thousand to twenty however if you're the master negotiator and you brought that vehicle in you could have traded between the trade high number which is twenty nine thousand three sixty four and the private loan number which is thirty thousand five twenty five a number in between who had been twenty nine thousand nine forty five you could have held out and got that number for it now when you look at what they listed the vehicle for thirty six thousand seven ninety eight could they easily have paid that number to a good negotiator the answer is absolutely yes but they didn't they bought it for twenty seven thousand to twenty they're trying to sell it for thirty six thousand seven 98 and paka themselves ninety five hundred and seventy eight dollars before you even get in to finance I hope this is a great help this is how you use Kelley Blue Book remember good condition is the category that you should always be using and then look at the kelley blue book trade loan number at 100 bucks that's most of the time what the dealer's paying for the vehicle always remember between Kelley Blue Book trade high and Kelley Blue Book private low a number in that range is what a very skilled negotiator could get for their trade if you just sit there long enough there you go hope this was a great help to you great stuff wasn't it if you appreciated the video today consider giving us a thumbs up and leave a comment down below include hash tag the homework guy will have a better chance of seeing it share the video on social media with your friends and family and make sure you join us on Facebook and Twitter too we post notifications and updates on other social media sites and answer car buyer questions there too if you love what we do and want to say thanks for the tip the PayPal and cash app links that you see here will be easy to find in the description box down below the homework I team has helped millions of car buyers with videos free contract reviews market updates and much more and will always have your back with more great content thanks everyone for coming back we'll see you on our next video you guys Rock I'm Kevin hunter until next time take care [Music]

Channel: Kevin Hunter The Homework Guy

Views: 96,684

Rating: 4.9665947 out of 5

Keywords: Car prices, Used cars, Car, Cars, Car dealers, Automotive, how to book out your car, kbb, kelley blue book, blue book value, kelley blue book value of my car, kelley blue book used cars, car value, kelley blue book vin, nada blue book, kelley blue book trucks, what is my trade in worth

Id: ixpchX1Gs8I

Length: 13min 4sec (784 seconds)

Published: Sun Jul 12 2020