NADA Used Car Prices Explained
Thursday, March 26th, 2009NADA (National Automobile Dealer’s Association) is obviously an association for those in the automotive retail business, the website (www.nada.com) also has a consumer division, to assist those buying a new or used vehicle.
Every month, NADA processes over half a million pieces of data to insure that the prices it publishes are the most accurate. NADA compiles and then averages out the information it receives from dealers, lending institutions, insurance companies, auction houses and more in order to come up with a fair evaluation price on any used vehicle dating back to 1990.
Some detractors to the website claim that the prices are slanted toward the dealer, not the consumer. After all, it’s an association for dealers, right? However, when I tested the pricing on a 2005 Chevy Malibu, I found that NADA’s suggested trade values were higher by about $150, which is in the consumer’s favor. There was also a slight difference on the suggested retail value. Kelly Blue Book values the car at $10,765 and NADA says it is worth $10,175. While this same level of pricing may not be the same for all makes and models, NADA’s website seems to be fair in its valuation of used vehicles.
Of course, as with any of the other vehicle evaluation websites, the prices given by NADA are subjective, and can vary greatly due to supply and demand. If there is a glut of a particular vehicle, the car will probably be worth less than the NADA evaluation. Conversely, if the vehicle is a very desirable make or color, it could very well be worth more than NADA predicted.
Whether trading in a vehicle, looking to sell a vehicle or even buying a used vehicle, make sure to check not just NADA for pricing but also other pricing sites like KBB and Edmunds. From those prices, you should be able to come up with a price range that you can then use as a guide. For more on KBB, see an explanation of the KBB pricing or for more info on Edmunds pricing, see an explanation on Edmunds TMV or True Market Value.
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