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 placement. This situation sometimes advantages the vendor, offering them with doubtlessly extra compensation than initially anticipated primarily based on customary 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 could come up resulting from excessive demand for particular car varieties, stock shortages, or strategic enterprise choices to draw prospects and purchase used automobiles shortly. This technique may be particularly prevalent in areas experiencing financial development or restricted new automobile availability.
