The phrase describes establishments that purchase vehicles from individuals at a price exceeding the Kelley Blue Book (KBB) valuation for that vehicle in its current condition and location. This scenario typically benefits the seller, providing them with potentially more compensation than initially anticipated based on standard valuation methodologies.
Historically, KBB has served as a benchmark for fair market value, influencing transactions between private parties and dealerships. Situations where dealerships offer more than this benchmark may arise due to high demand for specific vehicle types, inventory shortages, or strategic business decisions to attract customers and acquire used vehicles quickly. This strategy can be especially prevalent in regions experiencing economic growth or limited new car availability.
