Dealer glossary
Book value
A published estimate of what a vehicle is worth, from a valuation guide, used as a reference in appraisal and lending.
Definition
Also called guide book value
Valuation guides publish estimated values for used vehicles by year, make, model, trim, mileage and condition. Dealers use them as a reference when appraising a trade, and lenders use them when deciding how much to advance on a deal.
Different guides produce different numbers, and they are estimates rather than prices. A book value is a starting point for a conversation, not the answer to what a specific car will sell for in a specific market this week.
Because lenders lean on them, book value also sets a practical ceiling on financing, which is why it shows up in desking as often as in appraisal.
Related terms.
Appraisal →
Determining what a dealership should pay for a vehicle, whether taken in trade or bought at auction.
Trade equity →
The difference between what a trade-in is worth and what is still owed on it.
VIN decode →
Reading a vehicle identification number to populate the year, make, model, trim and factory equipment automatically.
See how this works in one system.
DealersCloud runs inventory, the CRM, desking, the books and your dealer website on the same records - so the things in this glossary stop living in separate places.
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