Do car dealers use NADA or Kelley Blue Book?

Do car dealers use NADA or Kelley Blue Book?

Kelley Blue Book and Edmunds are two of the most well known used car pricing guides in the United States. There is also another: NADA—but, NADA is usually used by banks or car dealers to show you an inflated price value. Therefore, you should never use NADA books for real references.

How do NADA values work?

Vehicle values are developed by NADAguides market/data analysts, based on many sources of information including reports of actual transactions. In order to determine a value for any given vehicle, there must be enough used sales transactions in the marketplace.

How accurate is NADA trade in value?

Though, NADA is considered a very reliable resource of used car prices by most, to fully understand when, where, and what makes it so you must understand the basis it’s built on. That sounds simple enough, but many American consumers could be very misguided about its information.

Why is NADA so much higher than KBB?

KBB factors in the condition of the vehicle, local market conditions, and popularity of the vehicle, so their prices tend to be a lower than NADA. NADA values tend to lean higher because they assume cars are in good conditions. Insights can be gained from both values, but KBB looks at more factors.

Is KBB vs NADA more accurate?

Using NADA gives a good ballpark estimate of why the dealership prices cars the way it does, but KBB might give a better idea of how much the car is worth. If the dealership price matches the NADA price, look at the condition and cross-reference it with KBB. KBB will probably give a more accurate answer in both cases.

Is NADA accurate for cars?

Though NADA is considered a very reliable resource of used car prices by most, to fully understand when, where, and what makes it so you must understand the basis it’s built on. That sounds simple enough, but many American consumers could be very misguided about its information.

What Blue Book do dealers use?

Kelley Blue Book
While Black Book is mostly used by dealers, Kelley Blue Book (Not spelled Kelly Blue Book without the “e”) is mostly used by individuals looking to trade in or sell their vehicles. Since 1926, Kelley Blue Book has been one of the best-known names in the auto industry.

Do dealers pay KBB trade in?

Most dealers do not use KBB for trade-in (wholesale) values. Instead, many rely on National Auto Research’s Black Book or the Manheim Market Report, neither of which is available to the public.

Do dealers honor Kelley Blue Book?