The Mechanic: Selling by the book

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By Dave Redinger

When it’s trade-in time, we often hear the term “Blue Book value.”
The “Blue Book” is an appraisal guide pegging the market value of your car. Used by banks and other financial institutions as a guide, the book is filled with extremely powerful information – powerful enough to make or break your deal.
In 1918 the Kelly Kar Company, based in Los Angeles, was in the business of selling used cars. Les Kelly began to circulate lists to others in the industry as to what he was wiling to pay for inventory. This list quickly became a trusted standard among the area banks and dealers. The idea caught on, and as they say, the rest is history.
It wasn’t until 1926 that Les first published “Kelly Blue Book”. Available on the internet Kelly has grown to become North America’s largest appraisal service.
Oddly enough we don’t use the “Blue Book” in Canada. We use the “Canadian Black Book.” It’s the little black pad a salesman pulls out when you first say you have a trade-in.
Ever wonder how the dealer evaluates your trade? He really doesn’t need your car (unless it’s something special people are breaking down the door for, or it’s a brand the dealership sells), but he needs to sell his car. So, the trade-in value is pegged at the wholesale value of the vehicle, according to the Canadian Black Book. Sometimes he’ll resell it; sometimes he’ll take it to auction.
So what’s your ride worth? Whatever someone is willing to pay of it.

Dave Redinger has more than 40 years’ experience as a mechanic and has run his shop, Doctor H Honda Specialists, in Toronto for the past 26 years. He’s also a radio talk show host and produces several television shows.