Why Is the Used Car Price Different From What It Says in KBB or NADA?

It’s always a good idea to use vehicle pricing resources like Kelley Blue Book (KBB) or the National Automobile Dealers Association (NADA) while shopping for a used car. But what happens when a vehicle is being advertised for a price that’s more or less than what KBB or NADA estimates?

The experts at Thompson Sales run into this question a lot. Here’s what you need to know if you find yourself in this situation.

What are the criteria for KBB & NADA car values?

Vehicle pricing resources like KBB and NADA use different criteria to determine the value of pre-owned cars. That’s why their estimates are different sometimes.

KBB uses the following criteria to estimate the value of a used car:

• Condition
• Warranty
• Popularity
• Local market conditions

NADA uses the following criteria to estimate the value of a used car:

• Local market demand
• Wholesale price
• Real-time retail market prices

KBB also primarily depends on car auctions to determine pre-owned vehicle pricing while NADA uses records collected from retail sales, particularly at auto dealers.

How can I accurately determine the average selling price for a used car?

Both KBB and NADA are great starting points to determine how much a used car is worth, but you shouldn’t rely on these valuations alone. It’s also a good idea to consult other guides and resources to determine the average selling price for a particular type of used vehicle.

Although this sounds like it might be a complicated process, it’s fairly straightforward. Here are the three steps you’ll need to take:

1. Use both KBB and NADA to get a selling price for the pre-owned car you’re interested in.
2. Search the internet for vehicles that are the same make and model as the one you’re considering buying. (This will provide current pricing for the same type of vehicle.) Jot down a few selling prices and add them up to come up with an average selling price.
3. Calculate the average of the KBB estimate, NADA estimate, and the average selling price you calculated from online dealers to get an accurate idea of how the used vehicle should be priced.

Related Post: Best Time to Buy a Certified Pre-Owned Vehicle

Where can I shop for fairly priced pre-owned vehicle in Springfield, Missouri?

If you’re in the market for a pre-owned vehicle, Thompson Sales can help. We have a regular, massive inventory of used vehicles and a broad range of prices to satisfy any budget. Stop by the lot today or reach out for more details. Call (417) 763-6811 or contact us online.