Why Kelley Blue Book’s new car rating shows used cars are gaining popularity
Kelley Blue Book (KBB), which offers regularly updated pricing for used cars, has added a “Very Good” rating in order to better reflect the evolving used car market. Additionally, KBB has expanded its weekly ratings to 51 regional markets nationwide in order to offer geographically relevant pricing information to sellers and buyer of used cars.
The “Very Good” rating joins the “Fair”, “Good” and “Excellent” ratings that KBB had previously, and falling between “Excellent” and “Good” on the scale (with “Excellent” being the highest possible rating). According to a press release by KBB, “Only 3% of today’s vehicles are actually in “Excellent” condition… the “Very Good” condition allows both consumers and dealers to determine a more accurate reflection of a vehicle’s actual condition…”
The availability of websites such as Craigslist and Ebay Motors has made it easier (and cheaper) for sellers and buyers of used cars to connect, and many use KBB’s ratings to judge a car’s worth in their local markets. Over the last few years – as the economy stagnated – used cars became a more popular option for many people that might have otherwise invested in a new car. At Answer Financial we have seen the average age of vehicles on policies increase.
In most cases, older vehicles are cheaper to insure as they have lower replacement values than a newer, similar model. Also, many people do not add comprehensive coverage for their used cars, preferring to simply pay potential costs out of pocket on their lower-valued automobiles.
Are you a used car owner or possibly selling your current car? What do you think about this new category, would it help you to accurately rate your car’s condition? Please let us know in the comments!
December 20, 2011