Looking at car values between both sites, it seems like KBB gives a much lower value. I know that a lot of insurers and financers use NADA to estimate the value of the vehicle, but KBB is respected as well. What do you guys think? Which would be the more correct value?

For references:

www.kbb.com

www.nada.com

every dealer ive ever been to uses NADA.

yes, I've seen that as well. Well if that is the case, then our car is worth alot more than people have been gettting here on the trade-ins.

Here is an example. 01 CLS with 35k and excellent condition

NADA: Average Trade-in $21250
KBB: Trade-in Value $18, 310

Whats up with this? 3Gs difference.

It all depends on how much they want to make on a trade. Most banks use NADA to determine Loan Value, so inturn most dealers have to as well. I don't know too many dealers who use the KBB figures when working out financing. I think KBB mainly caters to the auction circuit, wholesalers, etc.

My $.02

Well, if what chris said is indeed the case, then many of us have been underbid on the trade-ins. I am surprised then that no one brought this up previously.

Look at some of the ads for used 02 autos. I noticed a picture of one in excellent condition on a Maxima lot for $30K (dream on).

Perhaps the expression, "It doesn't hurt to ask... applies"

Check this out:

Autotrader CLS Used 300 miles from Los Angeles

NADA is market value ( what the car is really worth). KBB is retail value ( a suggested price that dealers should use) Most of the time the KBB is higher so that the dealer can negotiate and let you think you are getting a better deal. KBB is sort of the "asking" price for a car. another suggestion is to check out Edmunds.com as they also have the market value of a car.

What are you talking about? It seems to be a complete opposite. Check out my values above. KBB is 3 grand cheaper on the trade-in.

my bad. I didn't look at trade in. I was referring to buying a used car,. Most of the time, when you are buying a used car, KBB will have a higher value than NADA or edmunds.

yes in this case...

but historically NADA prices are significantly LOWER then KBB.

thats probably why KBB has a wider consumer audience... they like being pacified by the exaggerated worth of their cars.


in my trade-in experiences i've often gone in with KBB prices and had dealers chuckle at me and say "well we use NADA as a reference and it says your car is only worth this much"


either way... theres no such thing as MOST people getting less then what their car is worth.

if most people are trading their car for 18 and the book says its worth 21 the car is still only worth 18 because it can be had for 18.


The book is just a reference.

For retail correct? That might be the case, did not check. But I was looking more at the trade in. It seems that NADA is widely used by the dealers, but KBB could be for auctions like someone stated here. Still need more info. Anybody?

IMO, you're not going to get just ONE right answer about one being used more by one person/place or another. If you are in business, it behoves one to use as many sources of info as one can. The more you see what buyers are looking at, the better you can "work" them. Knowledge is power (no kidding).

When I purchased my Maxima in '92 it was KBB day.

A friend who ran a leasing company used to use KBB.

A seemingly wise suggestion is to use KBB, NADA, and any sources you can.

Regional pricing, color, and price tracking is important.

IMO, one may be lower than the other, but with supply and demand and the capricious nature of humans, you might find one correct in Austin and the other better in San Francisco.

Just to muddy the water -- here's a link to Edmunds.com with the TMV (True Market Value).

http://www.edmunds.com/products/tmv/index.html

[QUOTE]Originally posted by EricL
[B]IMO, you're not going to get just ONE right answer about one being used more by one person/place or another. If you are in business, it behoves one to use as many sources of info as one can. The more you see what buyers are looking at, the better you can "work" them. Knowledge is power (no kidding).

A seemingly wise suggestion is to use KBB, NADA, and any sources you can.

Regional pricing, color, and price tracking is important.

IMO, one may be lower than the other, but with supply and demand and the capricious nature of humans, you might find one correct in Austin and the other better in San Francisco.

Just to muddy the water -- here's a link to Edmunds.com with the TMV (True Market Value).


As a loan officer, I have to argue what the bank is willing to lend on just about every request sent to us by the dealers. They ask for $3K over NADA Trade value & I counter them saying I'll meet them half way. Then they start to argue..."But KBB says it's worth this & that, etc..." Like Eric stated...it all boils down to what they think they can get out of the consumer OR what a consumer wants to pay. If KBB suits their situation, they'll use that...if NADA works in that particular case, they'll argue with it,,,just to get the car sold. Speaking of muddy waters,,, banks often use large regional auctions to determine value(for lease buy-outs, etc). One of the biggest on the east coast is Manheim in PA. So, if both NADA & KBB don't 'serve the dealers purpose', they'll go for the auctions #'s. There's a ton of angles to look at & unfortunately, you've really got to do your homework before you shop.

*My best suggestion...look at Autotrader & see what people are asking in your area for the car...assume a little mark-up, like 10-15% or so for haggle room. That way you'll see what's really happening in your region. Also, you may be able to get recent auction results off the web for even more of an idea.

sorry for the bold type...




woops.

Very good stuff, thanks guys.

Big Pimp...check this out since you're in the Philly area...

http://www.manheim.com/tour/mmr.mpl

I work in DE & we use this info a lot.