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Kelley Blue Book explained

Kelley Blue Book explained

A key commitment at CARS24 is to price 95 per cent of the cars we sell below the Kelley Blue Book ® fair market range that you’ll find on dealer lots.

It means you are being offered a very fair deal on the car you want to buy. But how do we meet that goal? By teaming up with renowned vehicle valuation service Kelley Blue Book ® and the Kelley Blue Book ® Price Advisor system.

Price Advisor finds the average price for a used car in the Australian marketplace using data taken from a variety of sources including the CarsGuide and AutoTrader websites. Updated monthly using mathematical modelling, it rates how good a vehicle price is.

We’ll explain all that in a bit more detail in a moment, but first let’s take a look at the history of Kelley Blue Book, which is one of the most trusted data sources for valuing a car.

While it only arrived in Australia in 2019, Kelley Blue Book has been a staple of the US auto industry since 1918 when it was founded by Les Kelley as the Kelley Kar Company.

Kelley published his first blue book in 1926 and it became the standard guide in the automotive trade for determining vehicle value.

These days Kelley Blue Book is owned by Cox Enterprises, which is a multi-billion dollar global operation with more than 55,000 employees.

In North America the Kelley Blue Book now provides valuations for used and new vehicles, motorcycles, snowmobiles and personal watercraft.

In Australia, Cox Enterprises subsidiary Cox Automotive not only oversees Kelley Blue Book, but also offers automotive inventory, sales and service solutions.

So when you click on a car you’re interested in on our website and scroll down a little bit to the heading that says “Why it’s a great price” you’ll see where its price sits in the Kelley Blue Book ® Price Advisor range.

Look for the fan of white, green and red to instantly digest where the exact car you’re interested in fits within the broader market.

White means it’s a great deal, green means it’s a fair price that a dealer should be asking  and red means it’s a bit on the high side – generally for a very good reason.

Our aim is to get 95 per cent of the vehicles we sell into the white zone, which is a price below the market average.

About 5 per cent of cars on CARS24 fall into the green zone, which is equivalent to the Kelley Blue Book ® fair market asking price.

Very occasionally a car will pop up in the red zone and this is usually because there is very short supply or it has valuable optional features fitted, which can put it in high demand. It can also be seasonal – convertibles tend to more popular in summer than winter, for example – all of which factors into the asking price.

In making its valuation, Kelley Blue Book assumes the vehicle has been fully reconditioned and has a clean title history, two things that apply to all cars for sale on CARS24.

This price also takes into account the dealers’ profit, costs for advertising, sales commissions and other costs of doing business but excludes applicable tax.

The final sale price will likely be less, depending on the car’s actual condition, popularity, type of warranty offered and local market factors. In other words, it is the price you should expect a dealer to ask - not always the price you should pay.

But the beauty of the CARS24 offer is you don’t have to delve into all that detail. Just check out the colours and you know what pricing you’re being offered. Easy.