The phrase describes institutions that buy autos from people at a worth exceeding the Kelley Blue E-book (KBB) valuation for that automobile in its present situation and site. This situation sometimes advantages the vendor, offering them with doubtlessly extra compensation than initially anticipated based mostly 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 attributable to excessive demand for particular automobile varieties, stock shortages, or strategic enterprise selections to draw clients and purchase used autos rapidly. This technique might be particularly prevalent in areas experiencing financial development or restricted new automotive availability.
