What Is the Bluebook?

The Blue Book is one of several names used to refer to the Kelly Blue Book, which is a reference guide to used and new-car values. It is published by Kelly Blue Book Inc. in annual editions and has become the industry standard for determining the fair value of used cars for buying, selling and trading.

Use

While the Blue Book has undergone many changes over the years, its basic purpose and use remain the same. Users first find the make, model and year of the car they wish to evaluate. Makes are listed in alphabetical order, with models appearing as alphabetized subcategories. Each model year for that particular model is listed.
Once the car has been located, users select from a grid in which the same model is valued several times. Different values based on mileage, overall condition and the presence of significant options are available.

Three Values

When all of the details about a certain car have been taken into consideration, the user of the Blue Book finds a series of three values listed as dollar amounts. The first value represents what the Blue Book calls "Trade-In Value," what owners of that car might expect to be offered from a dealer when trading the car in toward the purchase of a new car.
The second value is the "Private Party Value," the amount prospective buyers and sellers might place on a car that is being sold from one individual to another. Last, the "Suggested Retail Value" represents the price that should serve as a "starting point for negotiation" between a car dealer and an individual buyer.

Origins

The Kelly Kar Company was founded in 1918 by Les Kelly as a Los Angeles, California Ford dealership. As his dealership grew, Kelly saw the need for a reference text listing industry standard pricing. He published the first Blue Book of Motor Car Values in 1926. In 1966, a publication listing the prices for new cars was added.

Later History

In 1993, Kelly Blue Book began marketing a consumer version of its trademark publication. For the first time, car buyers had access to the same pricing standards as the sellers from whom they bought. The consumer edition became a national bestseller, and the name Blue Book became synonymous with used car values. Kelly launched its website in 1995, offering Internet users the chance to determine a car's value by inputting the same information that would need to be cross-referenced in the paper edition of the Blue Book.

Industry Standard

The Kelly Blue Book is widely regarded as the standard for automobile pricing. Car dealers advertise special sale prices as being below Blue Book value. Buyers may use the Blue Book's values as a means of determining which cars are within their price range or as a way of ensuring that the price they pay for a used car is fair.

Resources

• Official Kelly Blue Book