How Does Kelley Blue Book Determine Motorcycle Value?
If you’re wondering how this valuation tool works and how accurate it is, you’re not alone.
Nevertheless, Kelley Blue Book is one of the top vehicle valuation resources for dealers and consumers alike. So, you can expect to receive accurate information.
Continue below to get the deets on how your motorcycle’s value is determined.
How Data is Collected
KBB collects data from the real-world transactions below daily. This information is then analyzed by their team of expert auditors.
1. Wholesale Auctions
Motorcycle dealers and wholesalers buy motorcycles from other dealers, rental agencies, fleet owners, financial institutions, etc. Then, they meet to sell, trade and buy these bikes at auctions.
KBB representatives audit the auctions regularly to determine the maximum cash value of each vehicle.
KBB also uses data from independent and franchise dealers. Information is collected from their direct-to-consumer and auction sales.
3. Rental and Fleet
According to KBB, rental companies typically send their cars to auction after one year or more.
KBB auditors record and analyze data from these auctions. (ie: sale price, length usage before sale, etc.)
4. Original Equipment Manufacturers (OEMs)
Motorcycle manufacturers (ie: Harley-Davidson, Indian Motorcycle) sell used promo motorcycles at auctions. This auction data is collected and interpreted by KBB auditors.
5. Financial Institution Lessors
After the lease term is complete, banks often sell the motorcycle to a dealer at auction or back to the lessee. They also sell and trade repossessed motorcycles.
6. Consumer Private Party Transactions
KBB also gathers data on private sales. These sale prices are analyzed by the KBB audit team each year.
How the Final Values are Determined
The company analyzes the “collected data along with historical trends, current economic conditions, industry developments, seasonality and location” using a “proprietary editorial process.”
KBB collects data from many different types of transactions. This helps them come to the most accurate valuation.
So, although your bike’s sentimental value is priceless, its actual value will be significantly less than its original purchase price.
Have an antique motorcycle? Check out this post on how to use NADAguides to determine motorcycle value. Kelley Blue Book doesn’t currently provide values for bikes manufactured before 1977.
Kelly Blue Book was founded in 1918 and has a long history of being a reliable resource for vehicle values.
Need help determining the value of your motorcycle? Check out this post in which we walk you step-by-step through how to use Kelley Blue Book to determine motorcycle value.
So, was the value of your bike what you expected? Let us know below!