NADA Car Values
Yesterday we talked about the Kelley Blue Book and the Black Book and today we will continue the series by offering information regarding the NADA Blue Book.
The full form of the NADA acronym is National Automobile Dealers Association. It was formed back in 1917 and represents car dealers. Many of the car dealers gave a petition to the United States government to diminish the luxury tax on cars. Later on, this petition was accepted and this triumph prompted the automobile dealers to form an association. Since then, this association represented the interests of all vehicle dealers in the United States.
With the NADA car values, customers can obtain valuable information about the vehicle that they plan on selling or buying. A problem has occurred regarding the difference between this book and the aforementioned Kelley Blue Book (KBB). Generally, the values provided by NADA are higher in comparison to KBB mainly because NADA also provides the basis for taxes. To compile the values, they take into consideration the average of actual wholesale prices that are paid in a certain area in the US. They also provide additional services to both consumers and car dealers.
If you never used NADA’s used car price guide calculator, here are the instructions that you need to follow:
First you need to click on the “start here” yellow logo and enter your zip code. Select the make that you want. After that, pick out the year and model of the car. You will now be asked to select a trim level. Last, you will need to select mileage and options (gearbox, sound system and so on). Once you have narrowed down your options, the used car values of trade-in (rough, average, clean) as well as the suggested retail price should be displayed.
You need to know that NADA is broken up into four pricing categories, as follows: rough trade-in, average trade-in, clean trade-in and clean retail. These various trade-in pricing categories are based upon appearance and mechanical factors. If you don’t know what a trade-in value is, it is the amount of money that the dealer will give you for trading in your car in exchange for another one. The clean retail value is the amount of money asked by the dealer to sell the car.
Rough trade-in value is used in those situations in which the dealer made major expenses in order to bring the cart to clean retail value. The clean trade value is used when the dealer pays very little for bringing the car up to clean retail value.
Depending upon the various needs of the consumer for selling, buying or trading in a used car, there are a few different pricing value categories. Some of these categories (ordered from lowest to highest) are: wholesale, trade-in value, private party value, suggested retail and certified pre-owned.
The wholesale value is used by the car dealers for unwanted trade-ins. The trade-in value is the amount allotted by the car dealer to the consumer. The private party value is when an individual person sells to an individual buyer. The suggested retail is the price the dealer sells to a retail customer. Certified pre-owned (CPO) are factory certified used cars.
If you have a car and you need other pricing categories other than suggested retail or trade-in, you should use other bluebook-pricing guides. Due to the fact that many of the car dealers use the NADA car values, the car owner should consult the pricing guide offered by NADA.
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