First of all, it’s Kelley Blue Book… but can it really help value a used vehicle?
How do I find the fair market value of my car?
Using valuation websites like Kelley’s blue book or Edmunds to give you a ballpark range. From there, head to online marketplaces to find close approximations based on mileage and condition of the vehicle. Finally, an inspection and appraisal by a licensed mechanical may also help to target a more specific price range.
Is fair market value the same as retail value?
No, fair market value would be based on private sale. Retail value usually comes in well above fair market value with a greedy salesperson justifying the cost with a variety of far fetching means. Using Kelly blue book as ammunition when negotiating vehicle price when buying or selling is usually ineffective. Finding comparable vehicles near your location is a more reliable way to accurately hit fair market value. Don’t be fooled by a car dealership that will try to place emphasis on retail value, it’s just an illusion, everything is negotiable.
Is Kelly Blue Book Canadian?
No, it was started in the United States but due to popularity, it has a dedicated .CA website to reflect pricing there. Vehicles in Canada generally cost more than the USA due to factors such as duties/tariffs and lower availability as there is more manufacturing plants in the USA. Using websites like Craig’s List, eBay and Kijiji are the best ways to value a vehicle. Beware, there are bogus posting there so take caution before zeroing in on your price, find at least three legitimate listings before finalizing your fair market value.
What is a NADA value?
NADA is short for National Automobile Dealers Association. Values are provided for used cars, certified pre-owned cars and more. Beware that using NADA for new values may not net you a price deduction in the negotiation phase of the vehicle. It would be prudent to mention that invoice pricing on new vehicles always leaves room for dealership profits, new vehicles have negotiable prices too.
Is NADA or KBB more accurate?
It’s like comparing apples to oranges, the consumer is more likely to use kelly blue book whereas a dealer is likely to use NADA so be sure to pick your valuation source accordingly. In most cases, active, valid listings in an online marketplace are more likely to net savings or reliable valuation than throwing out numbers bases on NADA or KBB. The best idea when negotiating a price is to not go in alone and avoid selling/buying to/from random people. If one has a connection to a buyer/seller it can usually lead to a favourable outcome, don’t just trust anybody to a large purchase or sale like this, you are bound to be taken advantage of.
Auto Blog Online’s take on KBB
We don’t trust it fully, but it would be an important step in the buying or selling phase of a vehicle. Use KBB to get in the range and find your three comparable listings in online marketplaces to fully nail down the right price.