If you’ve ever bought, sold, or traded in a car, you’ve likely heard of Kelley Blue Book (KBB)*, but you may not be familiar with what KBB is or how it works. Well, KBB is one of the most widely used vehicle valuation tools in the U.S.

What you can do through KBB

KBB is designed to guide users from initial research to the final transaction:

• Check used car values By entering a vehicle’s VIN or its year, make, model, mileage, and condition, you can see localized market ranges.

• Research new cars Compare MSRP, dealer invoice pricing, and the "Fair Purchase Price" (what others are actually paying).

• Get an instant cash offer Sellers can receive a redeemable, fixed-price offer from participating local dealers based on their valuation.

• Analyze ownership costs The 5-Year Cost to Own tool projects long-term expenses such as depreciation, fuel, insurance, and maintenance to help you compare the true costs of different models.

Understanding the various valuations

KBB publishes different values depending on the transaction context. Understanding the difference helps set realistic expectations.

• Trade-in value What a dealer may offer for your car when you trade it in. This figure is usually the lowest number, reflecting dealer costs and convenience.

• Private party value What a car typically sells for between individuals. Higher than trade-in, but requires more effort.

• Typical listing price What reconditioned vehicles are commonly listed for at dealerships

• Certified pre-owned (CPO) values Pricing guidance for manufacturer-certified used vehicles

• New car pricing MSRP, invoice price, and KBB Fair Purchase Price, which estimates what buyers are paying this week for a specific configuration.

KBB positions these as realistic benchmarks, not the absolute lowest deal possible or the highest price someone might ask.

How KBB’s valuation engine works

KBB is a statistical engine that processes millions of data points (dealer transactions, private sales, wholesale auctions, and lease returns).

To ensure accuracy, these values are updated weekly and adjusted for:

• Specifics like mileage, trim level, and optional equipment

• Conditions such as Fair, Good, Very Good, and Excellent

• Market factors, including regional supply and demand, seasonality, and macroeconomic trends

Why the industry trusts KBB

Because KBB’s data is rooted in actual transactions rather than just sellers’ asking prices, it’s deeply embedded in the automotive ecosystem. Lenders use it to determine auto financing, insurance companies to settle claims, and dealers to appraise trade-ins. By providing transparent FAQs and side-by-side comparisons, KBB serves as a neutral third-party that sets realistic expectations for both buyers and sellers.

Already thinking about your next car?

If you’re investigating the inner workings of KBB in advance of a vehicle purchase, we suggest also getting pre-qualified for auto financing through the Credit Acceptance website. You’ll learn the maximum monthly payment you might qualify for, plus receive a list of dealers near you. All in all, we have over 15,000 dealerships in our nationwide network, with plenty of vehicles you can look up on KBB.com.

*Kelley Blue Book is a third‑party resource and is not affiliated with or endorsing Credit Acceptance.