SOURCE: Carlypso

Carlypso

August 06, 2015 12:00 ET

New Carlypso Study Shows Consumers Shouldn't Rely on Kelley Blue Book Values When Selling/Buying Used Cars

SAN CARLOS, CA--(Marketwired - Aug 6, 2015) - Carlypso, the first technology company to sell used cars hassle-free with the largest inventory and best prices, announced today a new study that sheds light on how unreliable Kelley Blue Book values can be when it comes to determining the right price for a used car.

Carlypso's study shows that while most consumer-trusted car sites try to give as fair a valuation as possible, there can be overpayments or missed revenue opportunity if you rely on Kelley Blue Book as a source. 

Carlypso examined 326,000 wholesale vehicle transactions from December 2014 to April 2015 and compared these makes and models relative to Blue Book Values to find better prices for consumers buying used cars, and also cars that should be priced higher if consumers are selling their vehicles.

"While Kelley Blue Book is a well-known reference, it is not a reliable source for determining the true value of your car. When we looked at 326,000 vehicle transactions and compared them to Blue Book Values, the Blue Book Values were all over the map: on average, KBB was off by $4,379 compared to the 326,000 vehicle transaction we have on record," said Chris Coleman, co-founder of Carlypso. He added, "Consumers need to remember that KBB values are not based on actual transactions. KBB doesn't buy or sell used cars!"

In the first category, Carlypso noted cars that are significantly cheaper than KBB estimates based on wholesale transactions. 

If you want to save on used cars, relative to KBB, shop for:

                 
2012   BMW   M6 Convertible   $14,981   below KBB
2014   Jaguar   XJ Series   $13,957   below KBB
2014   BMW   740i   $12,764   below KBB
2014   Volkswagen   Tiguan   $11,400   below KBB
2013   BMW   740Li xDrive   $10,343   below KBB
2014   Volvo   XC60   $9,950   below KBB
2012   BMW   550i xDrive   $9,642   below KBB
2012   BMW   335is Convertible   $9,359   below KBB
2014   Infiniti   Q70   $9,290   below KBB
2012   BMW   335is Convertible   $9,281   below KBB
2015   Mercedes-Benz   C250 Coupe   $9,012   below KBB
2014   BMW   X5 sDrive35i   $8,708   below KBB
2014   Lexus   GS 350   $8,691   below KBB
                 

In the second category are cars that universally sell for more than what KBB indicates. Consumers should not use the values on KBB if they are selling these models:

                 
2015   Mercedes-Benz   C400 4MATIC   $2,394   above KBB
2014   Jeep   Grand Cherokee Ltd Sport   $1,705   above KBB
2012   Ram   1500 Regular Cab   $1,490   above KBB
2014   Ford   E150 Cargo   $1,230   above KBB
2015   Chrysler   200C   $1,174   above KBB
2012   Lincoln   MKX   $902   above KBB
2015   Mercedes-Benz   C300 4MATIC   $751   above KBB
2014   Chrysler   Town & Country   $636   above KBB
2015   Ford   Fusion Titanium   $477   above KBB
2014   Chevrolet   Express 1500 Cargo   $398   above KBB
2013   Porsche   Panamera   $312   above KBB
2014   FIAT   500 TREKKING   $306   above KBB
2015   Hyundai   Elantra GT   $297   above KBB
                 

What Does This Mean for the Consumer?

As a consumer here's how to avoid confusion when it comes to comparing the ACTUAL price to the Blue Book Value.

  • Primarily -- don't go by Blue Book Values -- compare other similar cars with similar year, make, model, trim and mileage. The market is the best indicator of market prices.

  • If possible -- ask what the dealer paid for the car. A fair markup is $2000-2500 including refurbishment.

  • Most dealers will only negotiate a small amount, so don't expect huge discounts!

  • If a dealer is letting you know the car is "well below Blue Book" chances are so is every other car in the market! Don't use it as additional pressure to make a purchase.

  • Conversely -- don't insist a dealer sell you a car "at Kelly Blue Book" -- some cars simply command higher values.

About Carlypso
Carlypso is the first technology company to sell used cars hassle-free with the biggest inventory and best prices available. Carlypso finds the best deals on inventory before it goes to the dealer, and passes that savings onto the consumer. An "Amazon for used cars", Carlypso advertises 4,000 used cars per week that are generally $2,500 below any traditional dealer offer. Carlypso, based in San Carlos, CA, has sold hundreds of cars to date for consumers throughout California and is expanding nationwide. For more information visit www.carlypso.com.

Contact Information

  • Media Contact:
    Kerry Metzdorf
    Big Swing Communications
    Email Contact
    978-463-2575