What is the "Kelley Blue Book" Price?

A few years back Edmunds.com posted a great article about Kelly Blue Book prices, what they are and how to use them. The article is titled, What is the "Kelley Blue Book" Price?

All too often, however, the dealer will direct your attention to a printed price guide — and often it will be the Kelley Blue Book. (Kelley publishes more than one price guide for used cars, but the one your dealer is likely to use is the one labeled "Kelley Blue Book Auto Market Report — Official Guide," the version of the book that Kelley sells to dealers.)

The salesperson will look up the car you are shopping for in the Kelley Blue Book, and will point to the "retail" price for that car. And then he will assert that since the price he is asking is quite a bit less, you should rest assured that he is asking a fair price. The implication is: why negotiate further?

But what is that "Kelley Blue Book" value he showed you? Is it the price at which cars like yours have recently sold to other buyers? Is it even an estimate of the actual transaction prices?

Tags Car - Selling - Buying - Shopping - Tip