i recently bought a used car. Based on Kelly Blue book, I got a really good deal; about $2500 under book. According to the NADA guide, i paid $1000 more than I should have. I have looked at retail prices on autotrader.com and cars.com, and those price are more reflective of the KBB prices. Which is more accurate, NADA or KBB, and why is there such a variance?|||Sorry, dealers haven't used the Kelley Blue Book in YEARS to determine trade-in or retail values.
They use auction prices from Manheim or similar and mark up as they see fit. The local market determines a car's price, not some nationwide online dumping ground of car prices.
To answer your question, neither are very accurate at all. They are to be used as guides only, never taken as gospel when it comes to car prices. After all, I could tell you "ElGrande Car Service is the most accurate in the biz!" but there's no way to check me on that... no frame of reference exists.
Don't rely on either. I'd check around to see what other vehicles of your make/model/year are going for, and go by that. The variance is always going to be because neither can give a true read on a local market... despite asking for zip codes and such, their pricing is based on nationwide averages.|||the dealer uses the blue to determine a trade in value and the NADA to determine the selling price|||Both are near worthless to the average person. And hardly any dealers use them either.
Black Book is the only valuation guide worth anything which is why they actually CHARGE for it.
That said, I would say don't pay more than the lower of the lowest "retail" value of both of them.
Retail for both of them is pretty high.
Trade in %26amp; private party values can be way off too.
Book Book= Accurate.
KBB %26amp; NADA= guesses.
However, some lenders will only lend up to NADA loan value which, I think might be 80% clean retail. (I forget exactly)
Black Books loan value, which fewer lenders use, is I think 90% of clean wholesale.
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