Why Is Kelly Blue Book Trade in Less Than Edmunds?

Edmunds and Kelley Blue Book are used to estimate a car's worth.

Many sellers and car dealers turn to Edmunds and Kelley Blue Book for trade-in values on vehicles. Often the prices for the same car are different.

Algorithms

Both Edmunds and Kelley Blue Book gather data from vehicle auctions and from car dealerships to come up with a price for different vehicles. However, they use different algorithms to come up with the average price for a car.

Categories

Edmunds and Kelley Blue Book also have different numbers of categories that a car can fall into based on its condition. Edmund's has five categories relating to a vehicle's condition, while Kelley Blue Book has four. Also, the criteria for a car to be placed in any one of these categories varies between the two companies.

Dealer Usage

Many dealers use Kelley Blue Book as most of its trade-in values are lower than Edmunds. Kelly Blue Book officials state that this is not a bias toward dealers on their part, but rather a result of the algorithm that they use and believe to be more accurate.

References

• MSN Money: Pricing a Used Car: Whom to Believe?
• University Credit Union: What's the Real Price for That Used Car? Different Pricing Services Have Different Numbers