How Much Could Your Car Be Worth With NADA Used Car Values?

Auto dealerships like Thompson Sales may use the National Automobile Dealers Association (NADA) guide as one of several digital tools to come up with a price for a used vehicle for sale.

In today’s blog, we’ll show you how much your vehicle could be worth using NADA used car values.

How do the NADA guides arrive at their used car values?

NADA relies on collecting data from more than 1.5 million vehicle transactions every month from industry sources, manufacturers, and dealers who are members of the organization.

In addition to dealer sales, NADA gathers information from auctions, retail sales data, and prices found on classified listing sites.

How often is the NADA guide updated?

Monthly.

Are NADA prices accurate?

NADA prices are considered very reliable when determining a retail price for a used car due to the data collection, long publication history, monthly updates, and respect the NADA has in the automotive industry.

What criteria does the NADA use to determine my used car’s value?

A large part of the NADA’s data comes from:

• Wholesale transactions
• Dealer management systems
• Asking for price information on AutoTrader.com

The pricing guide also collects information from other valid sources, like:

• Manufacturers
• Invoices
• Supply and demand for vehicles
• The location where the vehicle is sold
• Equipment costs 

Other main factors include:

• Condition
• Year
• Make
• Model
• Mileage

In addition to these data points, seasonal fluctuations can determine a used car’s value as you look to get a price for your vehicle.

Are there seasonal fluctuations that may determine a used car’s value?

Prices typically drop in September through December every year for very specific reasons.

• The new year models come out, which means there may be demand for new vehicles rather than used ones.
• Fleet owners, especially rental companies, usually sell their older vehicles at this time of year in anticipation of buying brand-new vehicles.
• Demand for vehicle sales drops during this time of year as people prepare for the fall and winter holidays. 
• Automakers may also discount the previous year’s new models to get rid of inventory on their lots, making them an affordable option compared to used vehicles.

So, if you want a higher price for your used vehicle, try selling it in the first eight months of the year.

What are some examples of how NADA vehicle prices can change based on various factors?

Because the NADA takes into account so many variables, used vehicle prices can change even if you see the same vehicle through an online listing.

Location. The cost of living is higher in New York, San Francisco, and Los Angeles compared to smaller cities like Des Moines, Iowa, or Springfield, Missouri. You could search for a 2019 GMC Terrain with the Utility 4D Denali AWD trim and 40,000 miles in one city, but the price may change based on how much that vehicle sells in that area.

Mileage. Using the same search for a 2019 GMC Terrain with the same trim but in the same location, one with 20,000 miles may have a higher value than one with 30,000 miles on it because there are fewer miles on the engine. However, this may not necessarily be true if the vehicle was driven in heavy-duty conditions like very dusty climates in the desert versus rainy climates like the Pacific Northwest. Dust can clog engines, which can reduce their longevity even if the mileage is lower.

Trim. The same year, make, and model of a vehicle may come in different trims. These trims have different standard features. For example, a 2019 GMC Terrain with a 1.5L turbodiesel might have a lower value than one with a 2.0L turbodiesel if all other factors are equal.

Demand. When gas prices are high, used vehicles with higher gas mileage or EVs might be more in demand, which could cause the prices of these used vehicles to rise. When gas prices are low, SUVs and trucks with lower gas mileage might have a higher used car value.

How come the dealer won’t give me the price it says in the NADA guide?

Dealers typically rely on other sources of information when pricing their vehicles for sale. Another thing to consider is that a dealer may offer a price that’s lower than what you find in the NADA guide because a dealer would resell the vehicle on their lot. 

When you see a private-party value, it’s the value stated if you, yourself, were to sell the vehicle.

The price a dealer pays for your vehicle is probably closer to the trade-in value. 

How come a dealer sells a vehicle for higher than the NADA’s used car value?

The reason for this comes from certified pre-owned vehicles. The NADA doesn’t take into account how much an auto dealership spends on parts and labor to bring a vehicle into a better condition. 

For example, a dealer might put new tires on a vehicle in addition to reconditioning the pistons, replacing the sparkplugs, flushing and filling the radiator, and other basic maintenance items. 

Where can I buy a quality used vehicle in Springfield, Missouri? Thompson Sales on East Independence. Take a look at what we have in stock for certified pre-owned vehicles and even value your trade with us using CARFAX.