Frequently Asked Questions: New Car

What are the Kelley Blue Book® Fair Purchase Prices?

Fair Purchase Price reflects the price consumers typically are paying for this vehicle. The Fair Purchase Price is regionalized based on actual new-vehicle transactions collected from across the country and adjusted regularly as market conditions change. 

Fair Purchase Price is determined by collecting thousands of actual consumer vehicle purchase prices, plus data from national vehicle registration databates and several other reliable third-party sources. That data is reviewed and validated by Kelley Blue Book's lead analysts and statisticians each week for reliability. 

Instead of the drop-dead lowest prices that some similar tools on the market purport to show, the Kelley Blue Book Fair Purchase Price gives you a realistic view of what a new car is actually selling for. 

Top
What is Fair Market Range? 

The Fair Market Range reflects the range of prices that Kelley Blue Book estimates most people will pay for a specific vehicle type this week. This range is determined using sophisticated statistical models that consider recent transactions, supply, demand and market changes.

Top
What is MSRP? Is that the same as "Sticker Price"?

The MSRP, or Manufacturer's Suggested Retail Price, is the price set by the new car manufacturer. The MSRP shown for a vehicle includes destination charges and minimum required equipment.  MSRP, destination charges and minimum required equipment appear as separate prices on the manufacturer's window sticker, so "MSRP" and "sticker price" aren't exactly the same.  A dealer can choose to sell a vehicle above or below its listed MSRP.

Top
What is Invoice?

Invoice price comes up often in price negotiations, so Kelley Blue Book provides it as a point of reference only. Consumers should be aware that the invoice price often bears little resemblance to the ultimate cost of the automobile to the dealer.  Invoice price is the price an auto manufacturer charges its franchise dealers for a new vehicle, but it does not include holdbacks and factory-to-dealer incentives which can lower the effective cost to the dealer. The invoice price shown includes destination charges and minimum required equipment and does not include any of the dealer's costs for local and regional advertising, selling, preparing, displaying or financing the vehicle.  Kelley Blue Book does not represent that the invoice price is the price a dealer actually paid for the vehicle.

Top
What does the term "holdback" mean?

Holdbacks are offered by the manufacturer to help defray some of the costs associated with the dealer's acquisition of new cars from the factory. Usually holdbacks are anywhere from one to three percent of the MSRP and vary in duration by manufacturer. In most cases, holdbacks are provided to cover the interest on the dealer's vehicle loans. The advantage to the dealer in selling the car as soon as possible is that he pockets more of the holdback money. The longer the car stays on his lot, the less he gets. After the holdback period has expired, the dealer begins to lose money on the car. While holdbacks are not negotiable, it is possible to negotiate the profit the dealer makes above invoice by knowing how much holdback he/she will be retaining. If a car has been on the lot for two or three months, the dealer is far more likely to sell at or near invoice to avoid incurring further debt. Remember, the dealer's profit is built into the cost of operating the dealership, paying his salesman, maintaining his inventory and advertising the vehicle. Also keep in mind that popular or hard to find models will often fetch top dollar; dealers will be less inclined to reduce their profit over the invoice.

Top
When will you have more new car pricing?

As soon as a manufacturer releases pricing information, our staff verifies and inputs the complex relationships that exist for any given vehicle (for example, when ordering a car with power windows, the manufacturer may package it so that power door locks and leather seats must also be added). That information is then uploaded to KBB.com once per week. Please be aware that many new models are advertised and may even be seen in the dealerships before the manufacturer has finalized pricing.

Top
When do you update your new car pricing?

Fair Purchase Price and Fair Market Range are updated weekly to coincide with market conditions and fluctuations. Other elements like MSRP and invoice are updated as needed - and verified weekly - based on manufacturer's input. 

Top
What do the abbreviations and symbols on your site mean? 

(  ) - This bullet-symbol indicates the model(s) for which this line item is listed. Loosely, "Available for this price on...  LS, GS, etc."
( * ) - The asterisk is used as the wildcard symbol. It is a place holder to signify any missing character. For example, D*B means D(any letter here)B.
2D - Two Door
4D - Four Door
5D - Five Door
2WD - Two-Wheel Drive
4WD - Four-Wheel Drive
6-CYL - Six-Cylinder Engine
8-CYL - Eight-Cylinder Engine
ABS - Anti-lock Braking System
AWD - All-Wheel Drive
BuyPower - Typically these vehicles are offered with few options and little variation allowed for simplified ordering.
CID - Cubic Inches Displacement
CVT - Continuously Variable Transmission
DOHC - Dual Overhead Cam
DRW - Dual Rear Wheels
DSL - Diesel
EFI - Electronic Fuel Injection
FFV - Flexible Fuel Vehicles
GVWR - Gross Vehicle Weight Rating
HO - High Output Engine
HP Turbo - High Performance Turbo
LP - Low Pressure Engine
MFI - Mulitport Fuel Injection
MSRP - Manufacturer's Suggested Retail Price
N/A - listed in the description text means that the item is Not Available. There is usually text describing the circumstances.
N/A - listed in the pricing columns means that at this time the pricing information is Not Available.
N/C - means that there is No Charge for this item.
PFI - Port Fuel Injection
PIO - Port Installed Options
PZEV - Partial Zero Emissions Vehicle
SFI - Sequential Fuel Injection
SOHC - Single Overhead Cam
SPRCHG - Supercharged Engine
SRW - Single Rear Wheels
SULEV - Super Ultra-Low Emission Vehicle
TG - Turbo Gas (fuel type)
Turbo - Turbocharged Engine
ULEV - Ultra Low Emissions Vehicle
V - Valve
V6 - Six-Cylinder Engine
V8 - Eight-Cylinder Engine
VTEC - Variable Timing and lift Electronic Control system
VVT - Variable Valve Timing
WB - Wheelbase

Top
What is the difference between factory, port, and dealer-installed options?

Factory-installed options are add ons that the factory adds, whereas port-installed options (PIO) are installed on the vehicle once it arrives in the United States – literally "at port." Both factory-installed options and port-installed options must be factory approved. Since there is some price control, we can consider them when providing Fair Purchase Price or Fair Market Range. 

Dealer-installed options are items added to the vehicle at the individual dealership. These might include alarm/security systems, upgraded wheels, etc. We do not list dealer-installed options, as they do not have to be factory approved and can vary widely in price. Since we cannot be certain of what brand or grade the dealer may choose to put in the vehicle, we cannot address them when providing Fair Purchase Price or Fair Market Range. 

Top
Do you have Canadian pricing?

Pricing and specifications info on KBB.com pertains only to vehicles sold in the United States. Vehicles sold in other countries may look the same as their U.S. counterparts, but often contain significant differences in engines, safety standards and optional equipment.

You can obtain a report from a region in the U.S. that borders your own, but remember vehicles built for the Canadian market do differ from their U.S. counterparts in both the engines and optional equipment choices. You must also do a little math to convert the U.S. dollar values to Canadian currency.

If you would like an idea of the value of a vehicle in U.S. dollars in a nearby region, enter the ZIP code closest to your province.

Alberta --- Shelby, MT 59474
Atlantic Provinces --- Bangor, ME 04401
British Columbia --- Bellingham, WA 98226
Manitoba --- Fargo, ND 58102
Ontario --- Detroit, MI 48202
Saskatchewan --- Glasgow, MT 59230

Top
Do you have anything on pricing in other countries?

Pricing and specifications info on KBB.com pertains only to vehicles sold in the United States. Vehicles sold in other countries may look the same as their U.S. counterparts, but often contain significant differences in engines, safety standards and optional equipment.

Kelley Blue Book also operates websites with pricing and information specific to these other countries: 

 As we continue to offer more global websites, we will pass the info on to you via KBB.com.

If you're interested in pricing for a country where we don't currently offer values, you can use a Pricing Report from our Western Region as a guideline, but remember vehicles built for the foreign markets do differ from their U.S. counterparts in both the engines and optional equipment choices. You must also do a little math to convert the U.S. dollar values to your country's currency.

If you would like an idea of the value of a vehicle in U.S. dollars in the Western region, please enter the following ZIP code: 92618

Top
Does Kelley Blue Book provide escrow services for vehicle purchases or guarantee online vehicle purchase transactions?

No. Kelley Blue Book does not participate in new or used vehicle transactions. To read more about how to help protect yourself from online fraud, More

Top
I am buying a demo car from a new car dealer, but it already has 700 miles on the odometer. Is this car considered new or used? How do I find its value?

A vehicle is considered new until it has been registered by an owner, not by virtue of the number of miles on the odometer. Unfortunately we cannot provide you with a standard deduction for miles on a new car. The discount offered for a demo model would depend on the dealer and should be compared against incentives or changes made on the new model before making your decision.

Top
Contact Us

Contact KBB

Business Inquiries
b2b.kbb.com

Address
195 Technology
Irvine, CA 92618
Map

Advertisement
Thanks for Supporting
Kelley Blue Book.
We deliver up-to-date car values, expert reviews and unbiased reporting at no
cost to you. To do this, we display ads from only trusted automotive partners.

To continue on our site, simply turn off your ad blocker and refresh the page.