Do dealers honor the Kelley Blue Book?

I have a used car picked out that I am likely going to purchase sometime this week (if all goes well). The Kelley Blue Book value has listed the car at $2,000 below what the dealership is asking. How do I used the KBB value to negotiate with the dealer? Do dealers honor the KBB price?|||Kelly Blue Book gives you a good range of what the car should cost. It is by no means an absolute price.





You can always negotiate a price down from what a dealer is asking. And they usually mark their prices high so it seems like you are saving a lot of money.





I would take a look at the car, point out anything that might be wrong with the car. Even if you know you can fix or replace something yourself, the dealer doesn't need to know that. Then I would say "Well, the blue book value for this car in excellent condition is 6000, and it has a couple of dents and scratches so will you take 5000? (this is assuming the asking price is 8000). They might counter offer and say 7000, and then you offer 6000. There is no guarantee that it will work like this, but its a good starting point.





Also, check craigslist and ebay to see what other people are asking for the same model and year of car and see if the prices are substantially lower or higher. This might give you more of an idea what you should be paying.





Good luck!|||Depends on the vehicle. KBB is not the Bible of used car values. It is only a guide that provides estimates. Market value and local economy and demand dictates the price of the vehicle.


They may expect to sell the car for KBB retail, or less. It doesn't mean they will price it that way, to start.





You can certainly use it to show the dealer as a negotiating tactic. It may or may not work.|||Kelly Blue Book is largely a consumer used book value, not a dealer or bank book value. Dealerships and banks will always use NADA values, and all used cars are bought and sold based on "Clean Loan" values generated by NADA.





Try book the car out on NADA. Don't be surprised if the sell price is still above book. The used car market is very strong right now. Two phenomena's contributed to it. In 2009, we had Cash for Clunkers that greatly reduced the volume of lower end cars in the market. Then in 2011, many manufacturers have underproduced new vehicles, leaving inventories short across the country. Fewer new cars mean fewer used cars traded in. Again, the used car market took another shortage. End result is that used cars are very high priced, and in most cases the books haven't caught up with where it's going yet.|||KBB is not used by the dealers. It is a price guide only. It is an estimate, an average of what a car SHOULD BE WORTH. And with all averages some prices are higher, some prices are lower. It isn't a manual that says this is the most you can get for this car.





You can use the KBB price as a point of negotiation but that doesn't mean the dealer has to accept it.|||KBB is nothing but an estimate. If the dealer is $2000 above KBB, it just shows that that dealers price is too high, KBB is inaccurate or both.





Nobody but the stupid public uses KBB.|||@ the Homework Guy





Banks do not ALWAYS use NADA. I work for a dealership in Arizona, and lenders ALWAYS use KBB retail and wholesale values for used cars. Do your homework next time.|||The dealer can sell the vehicle at whatever price they want to. Kelly Blue Book is a only a guide, not state law.