The phrase describes institutions that buy automobiles from people at a value exceeding the Kelley Blue E-book (KBB) valuation for that automobile in its present situation and site. This state of affairs sometimes advantages the vendor, offering them with probably extra compensation than initially anticipated primarily based 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 supply greater than this benchmark might come up on account of excessive demand for particular automobile sorts, stock shortages, or strategic enterprise selections to draw prospects and purchase used automobiles shortly. This technique will be particularly prevalent in areas experiencing financial development or restricted new automotive availability.