Do banks use NADA or Kelley Blue Book?

Most banks use NADA values; however, some use Black Book or Kelley Blue Book. Ask whether their LTV percentage is calculated upon the vehicle’s “loan” value, “trade” value or “retail” value.

What is NADA book value?

The NADA value is the value of your used vehicle based on many different value factors. The NADA guides have values for automobiles, motorcycles, boats, RVs, and even manufactured homes.

How is Blue Book value calculated?

Kelley determines Blue Book values by analyzing pricing information from real-world used car prices, as well as industry developments, economic conditions, and location.

What is nada clean loan value?

NADA describes this value as “Suggested amount of credit that may be obtained on a vehicle based on the Clean Trade-In value. Providers of vehicle financing determine the amount of credit they are willing to extend on a vehicle.”

What is the difference between Kelly Blue Book and NADA?

The main difference between the NADA Guides and the Kelley Blue Book is their method of computing a vehicle’s value. Whereas KBB focuses on condition, mileage, popularity, and features, NADA places more importance on the car’s wholesale price. Another difference is data gathering.

Why is nada value so low?

KBB factors in the condition of the vehicle, local market conditions, and popularity of the vehicle, so their prices tend to be a lower than NADA. NADA values tend to lean higher because they assume cars are in good conditions. Insights can be gained from both values, but KBB looks at more factors.

Is Blue Book value accurate?

For the most part, Kelley Blue Book (KBB) is one of the most accurate sources when it comes to prices for buying and selling used vehicles. Kelley Blue Book is a powerful resource. However, it is just one of multiple sources that folks use to help guide them in the car buying or selling process.

How accurate is NADA trade in value?

Though, NADA is considered a very reliable resource of used car prices by most, to fully understand when, where, and what makes it so you must understand the basis it’s built on. That sounds simple enough, but many American consumers could be very misguided about its information.

What does 90% of the NADA mean?

What exactly is the point of NADA’s “Clean Loan” value? I ran a calculation and it looks like it’s almost always exactly 90% of the Trade-In value for every vehicle/VIN in our system. NADA describes this value as “Suggested amount of credit that may be obtained on a vehicle based on the Clean Trade-In value.

How does NADA pricing work?

NADA makes use only of dealership sales prices. This means no private sales prices are include in their algorithm. That means the same car – same make, model, year – a dealership is selling in the exact same condition – similar mileage, same wear and tear – is not going to be much value to you.

What is the difference between Nada and Kelley Blue Book (KBB)?

The values between NADA and Kelley Blue Book (KBB) tend to differ because both organizations look at different values. KBB factors in the condition of the vehicle, local market conditions, and popularity of the vehicle, so their prices tend to be a lower than NADA. NADA values tend to lean higher because they assume cars are in good conditions.

What is the Blue Book value of a new car?

New Car Fair Purchase Price (once called the New Car Blue Book Value): This is the amount that a consumer would reasonably expect to pay to buy this new car at a dealership. Where to see these prices: These values are displayed, both on KBB.com and on dealers’ websites nationwide.

What is the Nada official Used Car Guide?

The NADA Official Used Car Guide is available on the NADAguides website, but it is used by Industry professionals and provides 12 years of pricing for passenger cars and light-duty trucks and SUVs. You can get for $99. NADAguides have values available to the public and have added new car pricing to their used car values.

How does Nada calculate the value of a vehicle?

When calculating a vehicle value, NADA uses many of the same considerations as Kelley Blue Book: MSRP and invoice (for new cars), mileage and general condition (for used cars) and assumptions about the equipment on the vehicle for all values.