The phrase describes institutions that buy automobiles from people at a worth exceeding the Kelley Blue Guide (KBB) valuation for that car in its present situation and site. This situation sometimes advantages the vendor, offering them with doubtlessly extra compensation than initially anticipated primarily based on commonplace 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 supply greater than this benchmark might come up resulting from excessive demand for particular car varieties, stock shortages, or strategic enterprise selections to draw prospects and purchase used automobiles rapidly. This technique will be particularly prevalent in areas experiencing financial progress or restricted new automobile availability.
