NADA vs. KBB: What is the best resource for used car pricing?

(iSeeCars) – If you’re buying or selling a used car, you’ll want an accurate appraisal of the vehicle to know if its price is fair. Fortunately, there are plenty of pricing tools available to help you determine a vehicle’s value.

You’ve probably heard of the two most common: the NADA guides and the Kelley Blue Book®. Is one more accurate than the other? And what are the differences between these two price guides? We have the important answers, but first here is a brief description of each:

NADA Guides

NADA stands for National Automobile Dealers Association, which is a trade organization that represents all franchised new car dealerships. NADA publishes the Official Used Car Guide, which provides used car values ​​to dealerships across the United States. Since 1933, The Used Car Guide has been a trusted and valuable resource for dealers to set retail prices and calculate trade-in values. In 2015, NADA was acquired by JD Power, another industry-leading data company. NADA also has a consumer-facing website, NADAguides.com, which provides pricing information for new and used cars as well as classic cars, motorcycles, recreational vehicles (RVs), boats and campers. -cars.

Kelley Blue Book Award

You’ve probably heard of “blue book value” because it’s become almost synonymous with car trade-in values. The Kelley Blue Book value has been a popular pricing tool since it was first published in 1926. The Blue Book is a guide that sets prices for new and used cars and provides an estimated price range for car buyers based on market make, model, style and year of a vehicle. The Blue Book is also available online at Kelley Blue Book’s website, KBB.com.

NADA Used Car Value Vs. KBB Used Car Value:

There are similarities and differences between NADA and KBB and the way they calculate used car values.

Let’s first see how the two are similar:

  • Consumer friendly: NADA and KBB have over 80 years of experience and aim to help consumers find accurate used car appraisals.
  • Dealer Approved: Dealerships also rely on NADA and KBB to help them sell cars and determine trade-in values.
  • Multiple Pricing Options: NADA and KBB each provide trade-in values ​​and retail values.
  • Range of values: NADA and KBB provide several values ​​for trading. KBB provides a fair market range, while NADA provides three values ​​based on your trade status.
  • Constantly updated: NADA and KBB reflect current market trends and constantly update their price information.

NADA and KBB also have key differences in determining the price of cars:

  • Value assessment methods: NADA focuses on the wholesale price of a vehicle, while KBB looks at condition, mileage, warranty, and local market conditions.
  • Data gathering: KBB obtains its data from car auctions, used car sales from car dealerships, fleets, manufacturers and private party sales to determine prices; while NADA uses wholesale transactions, sales transactions from dealers, and prices from websites like Autotrader.
  • Different conditions: NADA vehicle values ​​are generally higher because they assume the car is in good condition, while KBB asks specific questions about the condition of the car.
  • Price classifications: KBB provides Private Part Value, Trade-In Value, Suggested Retail Value and Certified Pre-Owned (CPO) Value, while NADA provides Trade-in Values, Retail Value and CPO Values. CPO. NADA does not provide a private part value.

Understand pricing conditions: trade-for-trade. Private Party Vs. Retail:

Since these values ​​can vary widely, it is important to understand what common pricing terms mean and the differences between them.

A car’s trade-in value is the amount of money a car dealer will offer you for your vehicle, while a private party’s value is the amount of money you’d get if you sold a vehicle directly. to a buyer. Because dealerships manage the complicated process of selling the vehicle, they offer a lower trade-in value to make a profit when they sell the car and to cover general costs associated with the transaction, such as inspection, reconditioning and transfer of ownership. Another pricing term is retail value, which is what a buyer can expect to pay for a used car at a dealership. Retail value is usually the highest value to cover overhead costs and help dealers make a profit.

Sell ​​your car instantly:

NADA and KBB will provide you with instant offers for your vehicle to provide a quick and hassle-free way to sell your car.

NADA offers an instant deal through its network of Certified Dealers on the JD Power website. You can either drop off your car at a participating dealer or have someone pick up your car. You can get paid for your car or use it to purchase another vehicle.

Kelley Blue Book offers an instant cash offer once you enter your vehicle information through their website. Offer is valid for three days and can be redeemed at a participating dealer. Sellers can also use the money to purchase another vehicle.

Both Instant Deals are subject to inspections.

Other pricing guides:

While KBB and NADA are two of the most popular tools for determining used car prices, there are other resources you can use to find your car’s value:

  • iSeeCars: The iSeeCars Price My Car Tool determines the market price of your vehicle. Based on data, iSeeCars calculates market value with its treasury of 25 billion data points that analyze the prices of similar cars for sale in the same local area. Its calculation takes into account many factors such as price, mileage, condition, finish, bodywork and features. If you’re buying a used car, iSeeCars Free VIN Check will provide a comprehensive price analysis to help you understand if a car is reasonably priced.
  • Consumer Reports: Consumer Reports is a reliable and unbiased website that includes used car prices, as well as important reliability information.
  • Edmunds: Edmunds offers a free valuation tool that provides an accurate True Market Value (TMV®) for your vehicle. It determines the average transaction price for new or used vehicles in your area. Edmunds also has a handy car loan calculator that will allow you to estimate monthly payments.
  • TrueCar: TrueCar relies on its network of dealerships across the United States which provides the company with transaction data. TrueCar provides an estimated value based on your vehicle’s specifications and condition. It then calculates a TrueCar cash offer and connects you with a certified dealer who will give you a check for the value of the vehicle.

Conclusion:

Whether you are interested in buying or selling a car, it is important to understand the fair price of a used vehicle. Just as it’s important for car buyers to do their research and shop around to find the best price for a used car, it’s important to use multiple car valuation tools to help you determine the value of your car. your car. This will help you understand if a car has a fair asking price or if there’s a lot of room for negotiation.

More on iSeeCars.com:

If you’re looking for a new or used vehicle, you can search over 4 million used and new cars with iSeeCars’ award-winning car search engine that helps buyers find the best deals cars by providing key information and valuable resources, like iSeeCars free VIN decoder reports.

This article, NADA Used Car Value Vs. KBB Used Car Value, originally appeared on iSeeCars.com.

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