The NADA and Buying/Selling a Vehicle

[Morvak]

A invaluable guide in buying or selling a vehicle is using this link:

http://www.nadaguides.com/

Simply plug in the year, make, model, mileage, options and voila! Instant value!

It will give you the current value of any new or used vehicle: car, motorcycle, boat, etc. It's an invaluable tool to use in deciding how much your vehicle is currently worth, if you decide to sell it or trade it in, and how much you should be paying for that new/used vehicle you are eyeing.

The NADA is used by dealers, insurance companies, auto auctions.

Kelly Blue Book? Forget it! No one uses that (insurance companies especially) in determing the price of a vehicle, especially used one.

I've worked in the auto finance industry for ~3 years (I was the guy that helped collect the insurance money when people wrecked their vehicles and they needed to be paid off). Insurance companies use the NADA to determine the value of the vehicle at the time of loss (the day the car wrecked).

Let me tell you that a lot of people are shocked to find out that after paying $300 a month for 5 years on a $15k Kia/Hyundai that it's currently only worth half that amount!

VW's are great at keeping their value, same with Toyota, Mazda to name a few, and of course the higher end cars (BMW, Mercedes, etc.). It's the Kia's, Hyundais' and the low end Chevy's and Ford's that don't hold their value.

In addition to the NADA, another way to find out what a good price is for a used car, is to call around to the local dealers in your area and see if they are selling the same vehicle (make and model) with close to the same miles and options. This is exactly what insurance companies will do as well, in determing how much to pay off your car when it gets wrecked.

Just thought I'd share some of my knowledge maybe it might help someone one day. Knowledge = power!

[Malpine Walis]

OK, I have a couple of questions that you might have some insight on.

In addition to the NADA, another way to find out what a good price is for a used car, is to call around to the local dealers in your area and see if they are selling the same vehicle (make and model) with close to the same miles and options. This is exactly what insurance companies will do as well, in determing how much to pay off your car when it gets wrecked.

Just thought I'd share some of my knowledge maybe it might help someone one day. Knowledge = power!

First, I wonder if you can even do that one better. Assuming that you already know what car you want to buy, would it be worthwhile to figure out what dealers in your area might have the car and then send them all a letter with the specs and the date that you intend to buy it and basically inviting them to give you their best price? Basically, if there are, say 20 dealers in a 50 mile radius, giving them the chance to compete for your purchase?

Second, would you have any insight on how insurance rates are figured out? Of course, when you go to any insurance company, they will want to know everything that they can about both you and the exact car that you intend to insure. Overall, I am fine with that. After all, all of that is relevant to them.

However, I am after more general information. We all know for example, that a black corvette is going to be more expensive than a white escort to insure, all else being equal. Black cars are somewhat less visible at night and 'vette owners are more likely to drive fast than escort owners.

So the second question would be: Where could one get the data on the basic vehicle information that is used to calculate insurance rates? As you said, knowledge is power and if you were comparing similar vehicle types (for example GTO, 'vette and mustang), it could well help to know that material.

[FudgeNuggets]

Dealers are in the business to bend you over and screw you hard. Quote something from the NADA or KBB or Edmunds and they'll quickly quote you some BS about market value, unless the market value is higher than said guides to which then they'll quote you the LOWEST value of those guides and thensay that the others don't matter. In the end, they want to get the MOST money for the vehicle you WANT and give you the LEAST money for the vehicle you HAVE.

Ultimately your best course of action is to shop around at several dealers and hope to find one that'll give you a semi-fair deal.

[DorianBrytestar]

KBB for my car "Excellent" $8345
NADA "High Retail" $8350

[speed bump]

Depends on the vehicle they told me a 1985 Plymouth Laser was worth $2100 and KBB told me the car was worth $680 guess which is closer to the truth?

[Quailane]

Depends on the vehicle they told me a 1985 Plymouth Laser was worth $2100 and KBB told me the car was worth $680 guess which is closer to the truth?

Obviously the KBB in this case.