The Kelley Blue Book is a widely recognized resource for determining the value of used trucks, cars, and other vehicles. It is a useful tool but is not always accurate due to the factors mentioned below. Meaningful estimates for damaged vehicles or automobiles sold for salvage are difficult to assess.
Damage and Repair Costs
The Kelley Blue Book value for salvage cars differs from the market value. An accurate assessment depends on variables not taken into account for the KBB.
The Blue Book value has little impact at the point of sale. Damage and repair costs make the value of salvage vehicles less likely to be accurate. Salvage valuations are about 50 percent of the Kelley Blue Book value for salvage cars.
Check rates for auto salvage in your area to get a more realistic valuation of an automobile in similar condition.
Vehicles Priced Correctly by Kelley Blue Book
Based on the recent sales data, Kelley Blue Book values reflect the fair market value of used cars in fairly good condition and new cars. It is undrivable, damaged, and salvaged cars that present a problem.
In some cases, the Kelley Blue Book Private Party Value renders a realistic price but factor in the money and time spent to list the vehicle, show it to multiple parties, and wait while trying to sell it.
How Salvage Value Is Calculated
There are factors that affect the calculation of salvage vehicle worth. They include
- Condition
- Location
- Make
- Mileage
- Model
- Year
- Other factors
The value depends a lot on the current scrap metal rates for the vehicle’s various parts.
You can use the KBB value as a starting point.
- Check the KBB lowest pricing category, “fair,” for your particular vehicle.
- Assess the state of your car.
- Reduce the valuation by 25 to 50% based on the damage to your vehicle.
Kelly Blue Book Value vs. Reality
The demand for a particular vehicle varies from one location to another.
Unsurprisingly, the KBB ‘fair market value’ rarely holds up without exception. Whether the car is in working order, a non-moving vehicle, or sold as salvage, the KBB fair market value likely provides unrealistic or false hope about its worth.