The phrase describes institutions that buy automobiles from people at a worth exceeding the Kelley Blue E-book (KBB) valuation for that car in its present situation and site. This state of affairs sometimes advantages the vendor, offering them with probably extra compensation than initially anticipated primarily based on normal valuation methodologies.
Traditionally, KBB has served as a benchmark for truthful market worth, influencing transactions between non-public events and dealerships. Conditions the place dealerships provide greater than this benchmark might come up because of excessive demand for particular car varieties, stock shortages, or strategic enterprise selections to draw prospects and purchase used automobiles shortly. This technique will be particularly prevalent in areas experiencing financial progress or restricted new automobile availability.
