NADA (National Automobile Dealers Association) has been providing the car values since 1917. Although it came into print in 1971 but a lot of buyers/sellers had already taken benefit of it. Since, then more and more dealers are getting associated with NADA Guide and it has prepared a huge database from the dealers which log each vehicle sold through dealerships across the country. This log is then used for future reference when a similar vehicle is purchased. Since it operates primarily with new vehicles, which are typically in excellent condition, they list higher values.
Even though buying a used car seems far more complex than buying a new car, they really are not that different. All you need to do is begin by looking in the NADA guide and determining the NADA used car value. The great advantage of this guide is that it draws its information from all of the car sales in the nation. This does not necessarily mean that the car is being sold at a great price. But at least you have a base line to work from.
Another important thing to do is to compare NADA guide to the KBB. Even though the NADA blue book uses final purchase price of cars throughout dealerships and auctions all throughout the country Nada Used Car Value, the KBB primarily calculates used car prices. In fact, it was created for that reason, whereas the NADA guide was created for cars in general, with a leaning towards new cars.
Why bother using the NADA used car value? One word: comparison. Sometimes, the NADA used car value will be lower than the Kelley blue book value. When that happens, you have one more advantage to bring to the negotiating table.
Now, even though buying a used car is not much more complex than buying a new car, we still have to take into account one thing. Unlike new cars, each used car is unique simply because of its mileage, condition, and options. The NADA guide and the Kelley blue book actually address these specifically in their calculations. There are various factors which affect a car’s value :
- Mileage: This is one of the most important factor for determining the car’s value. It is inversely proportional to the value i.e. more the mileage, less will be the value. Tip: Always look for cars with lesser mileage.
- Accidental: If the car had an accident when it was with its previous owner, you got to be careful. Accidental cars gets the least value and sometimes the price drops to 50% of the car’s value.
- Paint: Look for rust and stains all over the vehicle. If you find anything, prepare yourself to negotiate for a lower value.
- Sounds: There can be various types of sounds like rattling sound, engine sound, sound coming from the interior etc. If the engine noise is very high, there might be a problem with it. Tip: Take a test ride and observe the noises while standing, driving, turning reversing etc.
For example, in calculating the NADA used car value of a 2010 Toyota Camry, you BEGIN with the mileage! After that, questions are asked about transmission, power windows, cruise control, power door locks, leather seats, aluminum/alloy wheels, power sunroof, rear entertainment system, and navigation system.