Understanding Trade-in Values: NADA Used Car Values
When it comes to determining car trade-in values in America, there are two resources to use: NADA (National Automobile Dealers Association) and Kelley Blue Book. Both resources seek to provide accurate estimates of the value of every car on the road. But their methods for calculating a vehicle’s trade-in value vary slightly.
NADA used car values focus heavily on the car itself. The primary factors used to determine the value of a car are its selling prices at dealerships, auction houses, and websites across the country. Other factors for used vehicles include basic metrics like mileage, vehicle history, and any added features.
NADA’s car values are determined largely on the basis of what your car should cost given ideal conditions. NADA takes a very fact-based approach to determining car values. Because of this, it’s good for getting a baseline idea of what a car’s value should be. However, as you will see, there are other considerations which NADA does not give as much weight to. This can further affect a vehicle’s trade-in value.
Understanding Trade-in Values: Kelley Blue Book Car Value
The other major resource for car trade-in values is Kelley Blue Book. Of the two, you are probably more familiar with KBB than NADA.
Like NADA, Kelley Blue Book starts its valuation process by looking at the vehicle’s make and model. Strong consideration is given to the vehicle’s condition and history as well as other added features. But the primary distinction between a NADA and Kelley Blue Book car value is in how they value economic trends.
Kelley Blue Book places a strong emphasis on micro- and macro-economic factors when determining a car’s value. This includes many different things, all of which can cause your vehicle’s trade-in value to fluctuate. For instance, Kelley Blue Book car values are affected by general market trends within the automotive industry at any given time. They are also affected by seasonal price changes, model availability, and even regional pricing differences. This means your Kelley Blue Book car value might change from January to April. Similarly, your trade-in value could be different depending on whether you’re selling it in New York or North Carolina.
In other words, Kelley Blue Book tells you what your car should be worth at that exact moment. This is opposed to NADA, which provides a general estimate of what your car should be worth in standard conditions.
Is It Better to Use NADA or Kelley Blue Book to Determine Car Values?
So, if you’re trying to figure out the trade-in value of your car, which is better? Kelley Blue Book or NADA? The answer is neither.
You can use both, and you can choose to use one over the other. But having two options available helps both buyers and dealerships feel more comfortable with the accuracy of their vehicle trade-in values. Using both resources when trading in your car is helpful, especially if this is your first time doing so. The more information you have at your disposal, the better.
How Can I Maximize My Car Value?
Now that you know a bit more about how trade-in values are determined, it’s time to focus on maximizing your own car’s trade-in value. Much of your car’s trade-in value is out of your hands. The vehicle’s make and model are among the most important factors, and you can’t change those. You also have no control over the vehicle’s history prior to your ownership.
And, when it comes to KBB car values, you also have no control over the economic factors at play. But this does not mean you are powerless when it comes to getting a better trade-in value for your car. Here are some of the things you can control that can increase your vehicle trade-in value.
Know Your Car’s True Value
Let’s start with the simplest tip. If you want to get the most value for your used car, you should know what it’s worth. Before you even begin to consider trading in or selling your car, spend some time researching its approximate value. Both Kelley Blue Book and NADA provide free resources to help consumers calculate the value of their vehicles.
Understand How Timing Can Affect Value
Trade-in values can fluctuate from month to month. This may seem odd, but it makes sense once you understand why it happens. Of course, there are several distinct reasons why a car’s trade-in value might change throughout the year. They are mostly very practical but have little to do with the vehicles themselves.
For example, many dealerships will offer a higher trade-in value for cars during the first half of the year. This is simply because there tends to be a higher demand for cars during the first two yearly quarters. Therefore, dealerships have more incentive to accept trade-ins during those months.
Weather can also impact the trade-in value of certain models. All-wheel drive vehicles, pickup trucks, and SUVs can increase in value during the autumn and winter months. This is because these types of vehicles are often in higher demand during the winter, when driving conditions become more challenging. If your vehicle matches these descriptions, you might wait until the right time of year to trade it in.
Keep Up Appearances
A car can function perfectly fine if it has a few scratches or dents. But those visible marks can still tank its trade-in value. Put yourself in the dealer’s shoes in this situation. Would you rather have a car that looks pristine, or one that is all banged up? Assuming they both drive the same, you would choose the pristine car 100 times out of 100.
All of this is to say that it’s especially important to make sure your car looks nice before trading it in. Fix any dents, scratches, or other signs of wear and tear on the exterior. And don’t neglect the interior, either. You want your car to look as nice as possible before trading it in. This includes cleaning out and vacuuming the cabin. You might even consider some new floor mats and other finishes to really top off the interior.
Fix Any Mechanical Issues
Mechanical problems, even minor ones, can tank your car’s trade-in value. Major repairs and accidents will still show up on your vehicle history report, of course. But it is always better to take care of mechanical problems before trade-in.
Even if you are not experiencing any troubles with your car, some procedures can still increase its trade-in value. Certain small maintenance procedures can be great for increasing the trade-in value, even though your car may be running fine without them. For example, changing your oil and checking other fluids (brake fluids, transmission fluid, wiper fluid, etc.) prior to trade-in is always a good idea.
You should also look into any potential vehicle recalls for your car’s model. Most recalled parts will be fixed or replaced for free by the manufacturer. This can be one of the simplest, and best, ways to improve your car’s trade-in value.
Be Transparent
In any situation, but especially when selling your car online, you should be transparent about the vehicle’s condition. If you post a vehicle listing online, potential buyers might be skeptical if you are short on details. Be as honest as you can when describing the condition and performance of your car.
When selling online, provide plenty of pictures of the car, both inside and out. This does not necessarily improve the actual trade-in value of your car. However, it does help ensure that dealerships and independent buyers will be more confident in giving you the full trade-in value of your vehicle.
Don’t Settle for the First Offer
Getting the most value for your car often means shopping around. If you simply go to the dealership and accept their first trade-in offer, you will likely miss out. Try to get several offers from local dealerships before deciding. It is perhaps the single most important thing you can do to increase the amount you get for your car. VehBee was designed in part to make this an easier, faster, and more competitive process. This benefits you in a couple of ways.
First, it gives you more options to choose from and greater competition among your offers. Second, having multiple offers also assures you that you are not getting a below-market offer. The more trade-in offers you receive, the more clear an idea you will have of your car’s true market value. Equipped with this knowledge, you can negotiate a better deal for yourself. And third, VehBee eliminates the need to drive around to local dealers shopping for the best deal. With VehBee, the deals come to you online without requiring any additional work.
Be Comfortable Negotiating
Speaking of negotiating, you shouldn’t be afraid to stick up for yourself (or your vehicle). Many dealers will initially offer a slightly-below-average offer in anticipation of a negotiation. Be prepared to negotiate for a better trade-in value. This is where all of the homework you’ve done beforehand will be useful. The more information you have about your car and its trade-in value, the better off you’ll be in negotiation. You might reference the car’s condition or approximate KBB or NADA values. A little negotiation can end up saving you a couple hundred dollars.
Another negotiation tip is to negotiate your trade-in price separately from the eventual sale price. Some dealers will try to negotiate both the trade-in and sale prices together because it gives them more profit opportunities. It is easier for you to become flustered or overlook certain details when negotiating two transactions at once. But if you separate the two, and negotiate your trade-in value first, you have a good chance of securing a better deal.
Choose the Right Place to Sell
As we have mentioned, the trade-in value of your vehicle can be affected by location. But this doesn’t just mean geographic location. Some dealerships will offer you a better deal based on their inventory or specific needs.
But, when selling online, choosing the right marketplace can also affect resale and trade-in value. Try to pick an online platform that has a healthy amount of competition among buyers. This way, you can receive multiple offers. Also, make sure buyers on the platform are interested in your vehicle’s make and model. Where you choose to sell your vehicle can have a modest impact on how much you get in return. Additionally, some online platforms also simply make it easier to sell used vehicles.
How Do I Sell My Car for Maximum Value?
Now that you know how to get the most value for your trade-in, you may be asking: “How do I sell my car?” There are plenty of ways to do that. The traditional method is to bring your car to a local dealership and negotiate a deal. But, thanks to the internet, this is far from your only option these days. Selling your car online today is easier than it ever has been before.
One of the best, and most exciting, new ways to sell your car online is through VehBee. VehBee is a marketplace for selling your car online to local dealers. Research says that car sellers would prefer to work with a local dealer if they can be sure they are getting the best value for their car. VehBee’s auction format creates an easy, safe and transparent way for individuals to work with multiple dealers in one listing. To sell your car on VehBee, you simply create a vehicle listing, and let potential dealers place their bids. In the end, the seller is connected with the selected bidder [and only the selected bidder, so you don’t get bombarded with texts, emails, and phone calls!] to finalize the transaction to collect the cash and hand off the title and keys.
To sell your car online through VehBee, you will need to know a few key pieces of information about the vehicle. These include the VIN number, vehicle mileage, and, of course, the make and model. Any other details you can provide about the vehicle’s condition and history are highly valued by VehBee’s certified dealers. You should also be prepared to share high-quality images of both the inside and outside of your vehicle when selling online.
When you sell on VehBee, maximizing your car’s trade-in value is easy because of the consumer auction format. Because there can be multiple bidders for your vehicle, every offer needs to be competitive. This means dealers cannot offer a below-market value if they are serious about buying your car.
To get started, create your VehBee account or download the VehBee app from the Apple or Google Play stores today.
