NADA Guides Vs. KBB: Which Pricing Tool Should You Use?

If you’re buying or selling a used car, you’ll want an accurate valuation of the vehicle to know if it’s fairly priced. Luckily there are plenty of pricing tools available to help you figure out how much a vehicle is worth.

You’ve probably heard of the most common two: NADA Guides and Kelley Blue Book®. Is one more accurate than the other? And what are the differences between these two pricing guides? We have the important answers, but first here's a brief description of each:

NADAGuides

NADA stands for the National Automobile Dealers Association, which is a trade organization that represents all franchised new-car dealers. NADA publishes the Official Used Car Guide, which provides used car values for dealers across the United States. Since 1933, the Used Car guide has been a trusted and valuable resource for dealers to set retail prices and calculate trade-in values. In 2015, NADA was acquired by J.D. Power, another industry-leading data company. NADA also has a consumer-facing website, NADAguides.com, which provides pricing information on new and used cars as well as classic cars, motorcycles, recreational vehicles (RVs), boats, and motor homes. 

Kelley Blue Book Price

You’ve probably heard of “Blue Book value,” as it’s become nearly synonymous with car trade-in values. Kelley Blue Book value has been a popular pricing tool since it was first published in 1926. The Blue Book is a guidebook that sets prices for new and used cars and provides an estimated range of prices for car buyers based on a specific make, model, style and year of a vehicle. The Blue Book can also be accessed online through Kelley Blue Book’s website, KBB.com.

NADA Used Car Value Vs. KBB Used Car Value: 

There are similarities and differences between NADA and KBB and how they calculate used car values. 

First let’s look at how the two are similar:

• • Consumer-Friendly: Both NADA and KBB have over 80 years of experience and are aimed at helping consumers find accurate valuations of used cars.

  • Trusted by Dealers: Dealers also rely on NADA and KBB to help them sell cars and to determine trade-in values.  

• Multiple Price Options: NADA and KBB each provide trade-in values and retail values. 

• Range of Values: Both NADA and KBB provide multiple values for trade-ins. KBB provides a fair market range, while NADA provides three values based on the condition of your trade-in.

• Constantly Updated: NADA and KBB reflect current market trends and constantly update their pricing information.

NADA and KBB also have some key differences in determining car pricing:

• Methods of Assessing Value: NADA focuses on a vehicle’s wholesale price, while KBB looks at condition, mileage, warranty and local market conditions.

• Data Collection: KBB gets their data from car auctions, used car sales from auto dealers, fleets, manufacturers, and private party sales to determine pricing; while NADA uses wholesale transactions, dealership sales transactions, and pricing from websites like Autotrader.

• Different Conditions:  NADA vehicle values are generally higher because they assume the car is in good condition, while KBB asks specific questions about the car’s condition.

• Pricing Classifications: KBB provides private party value, trade-in value, suggested retail value, and certified pre-owned (CPO) value, while NADA provides trade-in values, retail value, and CPO values. NADA does not provide a private party value.