NADA vs. Kelly Blue Book
The Subtleties of Governmental Scams
I had procrastinated for about 3 or 4 months in getting the car ready, and as a result, the Kelly Blue Book value dropped by a few thousand dollars. This was devastating, as I had my targets set on a late 90s to early '00s model minivan, with several manufacturers in mind. The minivans had ticket prices of around $12k, and with the unbearably low Kelly Blue Book quote for my car, the deal just didn't seem worth it. To make the trade, I would have owed about twice as much as I currently owe.
The price the dealership offered me for my car was based on the Kelly Blue Book value. Though I was aware of other organizations that provided national quotes, I assumed that the figures would be similar. I was wrong, a fact I learned much later when it came time to pay my property taxes. As I read through the brochure explaining everything about the car tax, I found something very interesting. Taxes are based on the National Automobile Dealers Association, or NADA, value. Coincidentally, the NADA price is a considerably higher price
I say this: If I'm paying taxes on the NADA value, then by God I'm only going to sell based on the NADA value!
I implore all of you, don't stand for this. Taxes should only be paid based on market values, or what you can sell something for. Join with me in protesting this injustice in our taxation system. I have created a petition that I will be submitting to state and federal tax commissions in an attempt to change the rates at which our vehicles are taxed. You can sign the petition HERE. Remember that change starts with us.
Published by Kyle Minor
Kyle Minor is a technology enthusiast and Internet marketing consultant. Specializing in search engine optimization (SEO), project and risk management, Kyle is an expert at creating online brands that drive... View profile
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- We are being unfaily taxed on our vehicles.
- Kelly Blue Book car values are typically MUCH lower than the NADA values.
8 Comments
Post a CommentWell I have the exact opposite problem, except on personal watercraft. My two 1997 Polaris jetskis with a dual trailer on NADA is worth a total of $1,300 but on KBB the value is over $3,000. Banks use NADA for loan value, so how the heck am I supposed to justify trying to sell for the KBB value? HELP!
Oh, and for those who ar wondering. NADA is a recognized and legitimate Apprasail Guide complied based on actual reported sales figures which are corrected for region and updated every month. They are trusted and accepted by the banking, insurance, and automotive industry. Kelly Blue Book is run by a marketing firm and uses dealer surveys, not actual sales data to guess at car values. Their prices will always favor the dealership.
Bottom line, neither are perfect, but Kelley will always rip off the consumer, while NADA is considered the best pricing guide available.
My god man! If you got shafted on your trade-in because you have never heard of NADA until 2007, then you are a fool and you are the reason that dealerships try so hard to flat out rip people off, because with people like you it works. Next time hire a professional negotiator to work out the deal for you. The $200 you pay him will probably save you $2,000 on the deal price.
@Accuracy - Let me put it to you this way: It's worth what you can sell it for. My advice? use the highest figure you can find documented when trying to sell your car. Do the opposite when buying. As for the taxes, I don't think you can have car's values re-evaluated like you can with a home for property tax reasons, but perhaps you can. If anyone finds the answer to this out, please share!
So my question is... which is more accurate? Is one based on actual "sold" figures while the other is based on "what someone is asking" figures? (In other words, the average asking price will almost always be higher than the average price the vehicles sold for.) What gives... which method is more accurate for trying to find out what you can expect to get for your car, and figure out the difference between trade-in and selling on your own?
I just came across your article while doing a search on the difference between NADA and KBB. Thanks for the explanation!
Nick - Thanks, it's driving me CRAZY! I have more views on this article than any article, but so FEW signers. Anyway, thanks for signing!
Wow... I had no clue this was how it happened. I signed your petition, along with 3 other people.
You should promote this article a little more, and definitely link to the petition everywhere you can. Like the AC forum (non-AC discussions)