IRVINE, Calif. — Kelley Blue Book is adding a Certified Pre-Owned Value to its Web site next month to educate consumers about the benefits and value of CPO programs.
Basically, KBB calculates a specific model’s CPO value by adding an appropriate certified premium to the vehicle’s Blue Book Suggested Retail Value.
KBB processes recent certified vehicle transactions through a statistical model and analyzes discrete CPO program costs to calculate specific vehicles’ CPO premiums.
“Publishing the Kelley Blue Book CPO Values will help promote manufacturer based certified programs as well as the value and peace of mind it affords consumers,” shared Paul Johnson, president and chief executive officer of KBB.
“Kbb.com will also have comparisons of various OEM programs which will help educate the consumer and showcase the benefits of each OEM program,” Johnson added.
Essentially, the KBB Certified Pre-Owned Value is a suggested retail price that is reflective of dealers’ asking prices for CPO units, considers the dealers’ profits, advertising costs, sales commission, any other business costs and any value association with the CPO program.
“Dealers have welcomed this new value as a way to help educate the consumer about the benefits and value of buying a CPO car,” Johnson continued. “By making this information available it potentially makes the sale of a CPO car easier because a third-party independent source like Kelley Blue Book can verify the program details and the vehicle’s value for a consumer even before visiting a dealership.”
The KBB CPO Value will be next to the existing used-vehicle values within the Used-Car pricing path on Kbb.com in early December. There will also be a Blue Book Certified Pre-Owned Value “hub” page.
And sometime in 2010, KBB is planning on integrating its CPO Value into many of its industry products and services, officials shared.