Revealing the NADA Used Car Values

Most people in the US consider NADA a very reliable source of the used car pricing information. But to fully understand what car value it produces, you need to learn more about the foundation on which it is built. Here, at Indianapolis car dealer Indy Auto Man, we buy and sell cars every day, so we are ready to answer the most vital question of the customers: is NADA estimation value accurate and reliable?

What Is the NADA Used Car Price Guide? Is NADA the same as Kelly Blue Book (KBB)?

The NADA (National Automobile Dealers Association) guide is a set of customer reports, very similar to the KBB. However, the two guides have many differences when it comes to the accuracy and inconsistency of their message to the public. Read our KBB vs. NADA comparison to find out more about how each source calculates the car value.

How can I use NADA values when buying or selling a used car?

When buying or selling a used car, you can use NADA values as a benchmark to determine a fair price. For buyers, checking NADA values helps ensure you're not overpaying. For sellers, it provides a reasonable asking price based on current market conditions. Additionally, you can use these values to negotiate better terms during transactions by having a credible source to reference.

Keep in mind that several factors affect NADA used car values, including:

• Make and Model: Popular brands and models often retain higher values.
• Year: Newer vehicles typically have higher values.
• Mileage: Lower mileage usually correlates with higher value.
• Condition: The overall condition of the vehicle (mechanical and cosmetic) significantly impacts its value.
• Market Demand: Regional demand can influence prices; certain vehicles may be more desirable in specific areas.

What Is the National Automobile Dealers Association?

National Automobile Dealers Association is a trade group that incorporates thousands of car sellers in the US into the NADA Blue Book.

Where Does NADA Get the Information in the Manual From?

The National Automobile Dealers Association’s Blue Book Guide is the official retail value list, allowing you to see and compare car prices at multiple points of sale. And in spite it sounds reasonable and simple, it can be difficult to determine the future value of a particular car due to the general discrepancy between the values ​​given in the NADA and KBB guidelines.

How Does NADA List Vehicle Prices in Its Guide?

NADA representatives are promoting the NADA Guide as a list of the most reliable, valid, and proven vehicle market value information compared to the KBB Guide and the Edmunds Pricing Guide. NADA provides data from a unique set of points that other guides do not have is correct because others do not have access to car dealer sales exclusively affiliated with this association. As a result, NADA uses hundreds of thousands of sales transactions to derive an average directory price list. But is this a fair market value that consumers can expect? Of course, it’s not. Read about other types of used car values here.

What Are the NADA Estimation Issues?

Here, at Indy Auto Man, we do not use the NADA guides as a reference and recommend our customers to compare our valuation with the KBB offers. And here are the reasons why:

• NADA algorithms use only the dealer selling prices and do not include private sale values. This means that even if the dealership sells the same car (same make, model, year) in the same condition (same mileage and wear), its price won’t be of much value to you. In fact, official dealers tend to raise the selling price of cars higher than private sellers. What’s more, NADA guides don’t always consider discounts or incentives offered by car dealerships.
• The vehicles used for analysis in the algorithm are usually sold in very good condition. Individual sales tend to be vehicles that are rarely in an equal state, with a small percentage falling into the similar parameters of car sales from dealers. For this reason, the NADA used car value may not be the best indicator of the selling price you can expect for your vehicle.

Read also what factors define the used car value .

The best way to get a true market value when selling a used car in Indianapolis is to check the evaluations from the guides, get offers from local dealerships, consider trade-ins and other specials, and choose the option that will suit you best.