Kelly Blue book
Kelley Blue Book
Les Kelley had no money and no job when he came to California in 1914. He did have an old car in good condition because he was handy and had overhauled the car himself. His friends admired his car and wanted to buy it. After much hassle he sold it to one of them. With that money I bought another old Ford. Traded after an overhaul he bought this car and traded two of them in with a down payment. He also overhauled these and sold them again. In this way he regularly bought and sold cars and used them to pay for his school.
Les, now 21, founds the Kelly Kar Company in 1918 in Los Angeles. He started out with 3 Model T Fords and one employee, his 13-year-old brother Buster, on a piece of land that he leased from another car dealer. His cars were under the self-invented label 'Selected Blue Seal Automobiles'. When Buster was 18 he ran the workshop with 12 mechanics and Les was the sales manager. They did very well and soon had to look for another more spacious location. In the 1920s, Les was dissatisfied with the fact that all the cars he sold were black. Black was the fastest drying color. One day, when Buster spoke to an employee who was about to paint a car, he suggested painting the car pink. Buster thought it was a strange proposition, but the employee said he would repaint the car for free if he didn't sell. Sales skyrocketed, so much so that he soon ran out of stock. lesson so he drew up lists of cars he wanted with prices he was willing to pay for them and circulated them to other dealers and banks. People quickly relied on his insights and the lists and booklets were used by banks and auto companies in the Los Angeles area. Les soon realized that this would allow him to continue to provide good service to the industry and to the banks. Meanwhile, DuPont came up with a paint that, in any color, could dry in two time instead of a month, instantly changing the entire industry.
Using his company's data, he published his first booklet in 1926. The first booklet was published under the name 'Blue Book of Motor Car Values'. At the time, the term 'blue book' was used for address books that listed the people of high social status. (social registers). Emily Post had just published a book on etiquette that would be known as 'The Blue book of social usage'. The term 'blue book' therefore equaled 'valuable information'. Because of the blue and gold ribbon that came with his 'Selected Blue Seal Automobiles', he also chose that logo to display on the cover of his booklet. Les's booklet contained thousands of new prices and cash values.
In the 1930s, there was a daily line of cars in front of the door to be appraised. By now Buster had become the General Manager. When the number subscriptions boomed, the company moved to the corner of Figueroa and Pico in Los Angeles and became the largest used car dealer in the world. The workshop with claims department was at a different location to Pico and more than a hundred people worked there. They only sold used cars that were bought directly from the owners or trade-in dealers. After all, dealers didn't sell used cars. In the years after the stock market crash, entire stocks were sometimes bought from bankrupt dealers. The Kelleys also started their own insurance company and car club. Both were sold with the cars and sometimes even driving lessons had to be given to the buyers,
In the 1940s, the cars were bought in the East and transported to LA by rail cars, sometimes as much as 1,000 a month. Soldiers who had to go to the front could sell their car to the Kelley Kar Company and drive it until they left. After the Second World War, the demand for cars increased enormously and with it the demand and popularity of Kelley's books. The GI Credit plan is now being offered for returning soldiers. You do not have to pay, but you do have to pay off in 5 years. During World War II, the government uses the Blue Book values to set a maximum price for used cars that would otherwise become unaffordable due to high demand and shortages. Les, meanwhile, bought a Ford franchise that allowed the company to sell new cars as well. Advertising innovations consisted of full page newspaper advertisements and for the first time also television commercials in which the cars were described and promoted. The commercials sometimes lasted 15 minutes and showed Buster walking around the showroom and talking about their 30-day warranty. One could exchange a purchased car for another equivalent or more expensive car within 30 days.
In the 1950s Kelley was not only the largest used car dealer but also the largest Ford dealer in the country.
Kelley stopped selling cars in 1962. Partly because they had to move again due to growth. Due to the increased land prices in LA, this was stopped. Since the sale founded Buster together with his son Bob, he devoted himself entirely to the composition of the blue book that is published every other month. Kelley was the first publication to use a vehicle's odometer reading to determine its value. They also develop guides for motorhomes, caravans, ATVs, snowmobiles and motorcycles. In the 1970s, the average age of a car was 9 years. The booklet only lasted until age 7. A new guide was released, the Older Car Guide. Later there was even an Early Model Guide dating back to 1946. In 1978 Bob's son Mike also joins the firm. Mike had an IT background which gave the company an edge in technology. The company was big in providing information and that went through separate lists, into booklets, and after Mike took office, also through software and later the internet. In 1981 Mike becomes General Manager.
After Les Kelley's death in 1990, he was 93 and was still involved in his business, Bob Kelley continued the work, until he and his son Mike called it quits in 2000.
In 1993, a guide was first introduced published for consumers. The book was regularly found on the USA Today best seller list and was the best-selling automotive book. In 1995, the company set up a website where people could look up the prices of new cars. The residual values followed a year later. Within two years this was the most visited website on the internet (conditions for this claim unknown to me). In the first three weeks it asked for $3.95 per report but after complaints they chose to offer the reports for free but supported with advertising. The website was at number 2,144 in June 2017 in a by Alexa Internet compiled list of the most visited websites. Software is also available for dealers, financial institutions and insurance companies.
For many years there was no price information on new cars until Senator Monroney introduced a law in 1958 that required a price tag on every new car showing the equipment, as well as the Manufacturer's Recommended Retail Price (MSRP). After the introduction of this law, consumer confidence increased even more and sales also increased. This Window Sticker is still called the Monroney label today. Used cars, however, were provided with texts on the windscreen with 'low mileage', 'fully loaded', 'air conditioning', etc. on the windscreen until well into the 1990s. Kelley innovated again and introduced software for dealers in 1992 with which one could open a Blue Book window. sticker could print with the mileage, equipment etc along with the Blue Book value and the dealer asking price.
The insurance business and auto club were shut down decades ago, but the company still reports market values for new and used cars and motorcycles. In addition to the market value, a purchase value is also provided. Everything is based on real transactions and is regularly adjusted to market conditions. For new cars, the suggested retail prices and invoice prices are communicated. In 2002 they introduce the 'Fair Purchase Price' that helps consumers make an informed decision when buying a car. It concerns an average transaction price per region, ie the real invoiced price instead of the MSRP suggested retail price. In 2004 CDM Data is bought. Using their software, dealers can list and advertise cars.
For used vehicles communicate the market value, sales value, trade-in value and trade value, they also publish reviews and ratings and a cost overview for the first 5 years of a used car. In the early years of the 21st century, new car previews, comparisons, Blue Book advertisements and a view of the market are introduced. The number of visits to the website exceeds 10 million per month. There will even be awards for the vehicles with the best residual value. The website will be expanded with consumer reviews, residual values, video presentations, 360 degree videos and more. It already attracts 160 million visitors per year.
In 2010, the company was acquired by Autotrader.com (which itself is part of Cox Automotive). In 2013, it entered into a partnership with Bitauto Holdings LTD to be able to operate in China as well.
