What is the 'blue book'?

'Blue book' refers to Kelley's Blue Book, a pricing guide that lists the actual dealer costs, manufacturer's suggested retail price (MSRP), shipping costs, and other pricing information on new cars. The 'blue book price' usually refers to the actual price the dealer pays the factory for a vehicle.

It should be noted that car dealerships don't often use the Blue Book for pricing information. They usually use the National Automobile Dealer Association (NADA) guide. It has been suggested that the Kelley Blue Book listings are not accurate.

Although few people realize it, the blue book is now online at www.kbb.com; the information gleaned from this resouce can be a powerful ally in negotiating a fair price with a dealer. Copies of the 'blue book' and other valuable auto pricing resources can also be found at most public libraries in the reference section.