Why is the KBB "trade in" so much less then NADA?

I notice if you trade a vehicle in, dealerships intend to offer you KBB trade in price. NADA is about $3K more in value. I know when I finance an auto, they (banks/credit unions) go by NADA, not KBB.

I am wondering if KBB is the an market helper to benefit Dealerships and not us consumers that like to get most out of their rig if they wanted to trade it in.


I am planning on selling my rig out-right by using NADA and slap it on autotrader.

What you guys think about this whole NADA vs KBB issue?

Thanks


*** Oh yea and if you ever notice when you ask a sales rep @ a dealership what their vehicles worth, they go by NADA. lol Thats FUGGED UP!!

 

My view is that NADA is there for banks and state governments to OVERvalue your car and KBB is there for the actual consumers as to what they can buy or sell their car for.

NADA is consistently WAY over what you could realistically buy a car for in my experience. In MD they tax you on your car if you bought it somewhere else (even if it is a few years old). They valued my wifes Highlander at 28k (about 3 k more than we actually bought it for). Fantastic

 

KBB, even on their website states their "retail" value is a suggested starting point for negotiating at a dealership and factors in the dealers advertising costs to come up with the value. So if anything KBB is helping the dealership. The retail value is high becasue most people will not go into a dealership and just pay the sticker price on the vehicle without negotiating it. If anything, Edmunds seems to be the most realistic value since they show the car's actual market value.

 

galves


http://www.galves.com/

 

When the wife and I tried to trade our 00 Quest for a new 05 Odyssey EX-L, the Honda dealer gave us a TIV based on Galves.....which meant our 120k mile Quest had next to NO value.

Go that route.

 

It's good to use to gauge what you really will get for a trade in. It's what many dealers use.

 

I only use Galves for my business...KBB and NADA are to me. Some dealers use NADA too though.

 

This is what NADA says about my two year old TL:


March 02, 2006 NADA

....................................Average Trade-In............Average Retail
Base Price ..........................$28,150 ...........................$31,375

Mileage....5,000 miles........+ $1,275...........................+ $1,275

TOTAL PRICE........................$29,425.............. ..............$32,650

That's pretty close to what I paid for it two years ago. I think NADA is a little "happy". I WISH I could get that price on a private sale but why would anyone pay that if they could get a new 2006 for a hundred or so more?

I also note with interest that the 6MT is valued at $ 625 less than the 5AT.

 

^^^^ thats why I said only gov't use it because it overvalues your car and they get more taxes out of it. Utter crap

 

about 4 years ago when I traded my 94 Dodge Ram 4x4 in on my 02 Tundra. They said they go by 'black book' it was way under(like 3 grand under) what i was expecting. and they wouldn't move the value of the trade in so i went somewhere they gave me what I wanted for it.

 

Shift_It, I got your PM the other day but your box is full...Empty it so I can send you the info you requested!

 

You have 5k miles on your 04 TL? I figured these numbers with that many miles:


..:: VEHICLE
2004 ACURA TL


..:: DESCRIPTION
Engine Type: 3.2L V6
Body Style: 4 DOOR SEDAN
Vincode:

Standard Features: BOSE AUDIO STD
CD CHANGER STD
DUAL POWER SEATS STD
DUAL ZONE AUTOMATIC AC STD
FRONT SIDE AIR BAGS STD
LEATHER STD
MOON ROOF (POWER) STD
TRACTION CONTROL STD


Base Price: @ 28,000 miles 24,300
Mileage: 5,000


..:: ADDS & DEDUCTS

ADD: NAVIGATION + 900
As Equipped Price 25,200
Mileage Adjustment 2,575

GALVES VALUE 27,775

 

Damn my bad. Aight hit me up. I cleared my mailbox out Thanks