How are NADA Car Prices Determined?

The NADA price guide is one of the most trusted resources for determining the value of an automobile. NADA stands for National Automobile Dealers Association. This association is designed to accurately provide prices for new and used vehicles based on a variety of criteria. One way NADA car prices are determined is by averaging auction prices and dealership prices from around the country. You will find several prices for the same vehicle listed in this guide. For example, in the 2007 guide you will see prices for the past eight years. Listed are prices such as trade-in, MSRP, loan and retail.

Another way to find the NADA price for a particular vehicle is to search their website. All of the information you can find in the book is available right on the web site. I would say that the site is preferable to the book, but when you are shopping at a dealership you don't want to lug your laptop around. If you are a dealer talking to a customer the same thing applies -- it is easier to refer to a small, pocket-sized book than a computer. However if you are doing your research at home, the site is the most comprehensive source of information.

You will see that the NADA site is organized into a variety of different sections. There is the New Car section and the Used Car section. Under the New Car section you will find prices, specs, safety information and more. You can see photos of new cars and even build your dream car right on the computer. You can compare vehicles, learn about rebates and learn about shopping for a new car. The Used Car section is just as comprehensive and offers many buying and selling tips that relate especially to pre-owned vehicles.

NADA car prices are lower than Kelley Blue Book prices on average. This is why the majority of dealerships will refer to the Kelley Blue Book price instead. It is a good idea to research both values and come up with an average when determining the worth of a vehicle. Like NADA, Kelley also has a web site where you can look up vehicle prices and learn a great deal about buying, selling or leasing an automobile. Yet another fantastic resource that you can use is Edmunds, another leader in the world of vehicle pricing.

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