Kelley Blue Book & NADA Guide FAQs

Both the Kelley Blue Book and NADA guides are online tools for auto dealers and car sellers. They have been around for decades and are the definitive sources for trying to determine a vehicle’s value.

We’ll tell you more details about these guides in today’s educational blog post.

What is the purpose of the Kelley Blue Book?

The Kelley Blue Book helps people determine the value of a used vehicle before selling it. 

The overall goal of the publication is to provide a transparent and accurate auto shopping experience for dealers, buyers, sellers, and trade-in situations. 

How long has the Kelley Blue Book been around?

The first Kelley Blue Book was published in 1926. The guide is around 100 years old. It’s called the blue book because hard copies were published with a blue cover.

How accurate is the Kelley Blue Book?

Kelley Blue Book is a reputable and accurate source for new and used vehicle prices. 

The publisher takes into account several factors for vehicle prices:

• Location of the vehicle where it’s being sold.
• Time of year when the vehicle will be sold.
• Changes in the auto industry, such as a chip shortage or supply chain issue.
• Mileage of the vehicle.
• Condition of the vehicle, like excellent, good, and poor.
• Current economic conditions, including supply and demand, whether the economy is good or in a recession, and interest rates on auto loans.
• Auto industry changes, including the availability of certain types of vehicles and gas prices.
• Year of the vehicle.
• Make of the vehicle.
• Model of the vehicle.
• Advanced features on a vehicle, like lane-changing technology.

The website is very good at allowing shoppers to add on features of various makes and models to get an accurate pricing model.

What vehicle prices are included in the Kelley Blue Book?

The Kelley Blue Book can give shoppers four basic price options for new and used vehicles.

1. Private party value. This value is what you get when a vehicle sells between two individuals or private parties. This price doesn’t take into account professional dealers.
2. Trade-in value. This is the value you would get if you trade in the vehicle to a dealership as part of a deal to purchase a newer car.
3. Suggested retail price.  This value comes from what an auto dealer would sell a vehicle for. A vehicle dealer doesn’t have to follow the Kelley Blue Book exactly, as there are variations from the price listed in this guide.
4. Certified pre-owned value. This auto value takes into account a certified pre-owned program wherein car dealers can follow factory specs for manufacturers to bring a used car as close to factory condition as possible. 

You can change many types of information on the Kelley Blue Book website or the app to get as close to the accurate price as you can.

How do I use the Kelley Blue Book?

Once on the website or the app, take several steps to find the vehicle price.

1. Input the year, make, model, and ZIP code. 
2. Then you select a trim style. 
3. The website or app will show you the online listings in  your area that fit the data you input.

You can also search by price first if you have a price and then need to find what kind of vehicle you can purchase for your money.

What are the differences between the Kelley Blue Book and NADA guides?

National Auto Dealership Association (NADA) guides tend to have higher prices versus the Kelley Blue Book. NADA guides place more importance on wholesale prices rather than the condition of the vehicle like Kelley Blue Book.

There is another key difference between NADA and Kelley Blue Book. NADAguides also features prices for motorcycles, RVs, boats, classic cars, and manufactured homes (mobile homes).

How long have NADA guides been around?

NADA guides, officially branded as “NADAguides” is owned by J.D. Power. The first guide came out in 1933, and it had a peach-colored cover.

What data do the NADA guides use for calculating prices? 

NADA guides rely on data from more than 1.5 million vehicle transactions every month thanks to the company’s longstanding relationships with manufacturers, industry groups, and auto dealers.

Other data points come from:

• Wholesale auction results
• Retail sales data from dealers across the country
• Prices listed on classified listing sites where private parties put vehicles for sale

Of course, economic forces also play a part in the prices for the NADA guides.

How do I use NADA guides for pricing vehicles for sale?

Proceed to the NADA guides website or download the app. 

From there, follow these steps:

1. Select a body style, such as SUV, pickup truck, van, crossover, sedan, or diesel.
2. From there, you can shop by price, price range, miles per gallon, best reviewed, safety, horsepower, location, and the most researched.
3. From there, you can narrow down the choices to the year, make, and model you’re interested in.

What other pricing guides can I utilize for vehicles?

Kelley Blue Book and NADA guides are not the only way to research vehicle prices.

You can check with:

• Edmunds, a car guide that has been around for decades.
• Black Book is software that requires a paid download to a computer.
• The Manheim Market Report (MMR), a resource often used by auto dealers.

The best course of action to determine the most accurate price for a vehicle is to compile figures from reliable sources and take an average of the figures because no single source will be 100% correct.

Where can I get a great deal on new or used vehicles in Springfield, Missouri?

Thompson Sales on East Independence. Take a look at what we have in stock for certified pre-owned and even value your trade with us using CARFAX.