When trying to find out the market value for a second hand car in USA, which of these two resources give the better estimates?
How should you then go on to use these price estimates to your best advantage when buying from a dealership?
I think you’ll find that the variance between these two books is less significant than the geographics of where you’re purchasing a particular car.
Local demand for a particular model varies as does the price, accordingly.
When several members of our family were buying used cars a few years back, I found the Kelly was utterly useless. No relation to reality at all. Look up NADA prices. That is what the dealers use.
When you can quote the NADA price on a car to a salesman, you can see the gleam in his eyes fade.
Kelley Blue Book represents a likely ASKING price for a car. It should be avoided–you will get ripped off if you pay what it suggests, and you will be disappointed if you count on it when setting a price. People only remember the name of this publication because everyone has been in love with a girl named “Kelly” at some point and they project good feelings on to the name. Anyone who has ever depended on this resource will suddenly recall that their “Kelly” cheated on them with their best friend. Kelley’s website actually posts a blurb stating that their price is a starting point for negotiation and that the actual agreed-upon price will likely be less. So they admit that they publish a meaningless number. And yet, they continue to do what they do. The mind boggles.
NADA is primarily based on what dealers report selling cars for. They also consult with professional appraisers, market specialists, etc. It’s a MUCH better reflection of reality. Edmunds indicates they base their prices on actual sales data as well. I would be more inclined to trust this type of information than Kelley’s witchcraft and weasels methodology.
Cars.com and Autotrader.com remain a good acid test for what NADA and Edmunds tell you.
Been car shopping with my brother for the last 2 weeks. So far we’ve been to about 20 some dealerships around the twin cities. We’ve gone in to haggle 5 times. Each time they brought up the suggested price using Kelly. Kinda like, “See, we are giving you a good price”. I pretty much figured anything they are using is BS and would probably avoid it. Checking Edmunds and Kellys for the same car, Edmunds prices the car for almost 2 grand less (mazda 3 Hatchback). Which in my case I believe they use Kelly for the highest sell price they can.
Thanks Guys.
NADA does seem the best guide I can find online. And yes Kelly BLue Book seems to be favourable to the dealers, no wonder so many cars are listed at the kbb price.
Also I was interested to find out my current car has much more resale value than I expected. Even though to get it to perfect condition would cost me more than the car is wort, it has a resale value of about $1000.00.