What is the difference between nada and kbb

NADA provides an instant offer through its network of certified dealers on the J. Power website. You can either drop your car off at a participating dealer, or someone will come and pick up your car. You can get paid for your car or put it toward the purchase of another vehicle.

Kelley Blue Book provides an Instant Cash Offer after you input your vehicle information through their website. So, if the car is priced too high, they will have to back out of the purchase. But why does NADA get to call the shots?

According to NADA. Used vehicles depreciate at different rates, which is why they do not use a standard depreciation percentage rate across all vehicles. KBB is owned by Cox Automotive, a company built for dealers, that sells your information to dealers. Click Here to get your cash offer from the guys who are here to help you.

The guides were founded to answer an industry need, not a consumer need. NADA Guides information was typically kept within the dealer, finance, insurance, and government communities. During its early years, the effort relied heavily on data provided by car dealerships, but at the same time, the goal was to keep the pricing unbiased and accurate.

An inaccurate guidebook, of course, is of little value. Almost from the start in the s, vehicle manufacturers began encouraging dealers to provide sales figures and other data to NADA Used Car Guides. Soon thereafter, it began making supplemental checks of data authenticity and solicited statisticians and economists to confirm the soundness of its analysis.

And it leveraged its longtime affiliation with the National Auto Auction Association wholesale-pricing data. Both rely on a wide variety of information sources to gather the raw data.

And both use very sophisticated analytic tools to turn the raw data into usable pricing information. So how do Kelley Blue Book and NADA Guides, who provide value and pricing information to the industry and consumers alike, go about producing those values? And how do they ensure their validity? The answer is data — big data. Both organizations gather, analyze, and leverage massive amounts of sales and pricing data, including actual retail transactions and wholesale auction transactions.

Those are the ingredients from which the values are created, but they are not the values themselves. Power PIN data. It also analyzes asking price information from www. In addition to cars , SUVs , and trucks , NADA Guides offers third-party values for motorcycles, recreational vehicles, classic and special-interest cars, boats, and manufactured homes.

Where the two major price guidebooks differ is in the specifics of their individual processes. And neither company is willing to go deeply into the specifics because those are proprietary, just like the formula for Coca-Cola. Kelley Blue Book says a lot of numbers and data intelligence goes into its proprietary valuation process. The brand uses predictive analytics and industry and field analysis to review trends and provide current, market-reflective information. Yoell said her company "utilizes more than data sources delivering 3.

NADA draws in giant amounts of data from automakers, wholesalers, and retailers of used vehicles. The most important data, of course, are the individual amounts for which dealers bought and sold their vehicles.

NADA Guides then factors in supply and demand and other macro- and micro-economic factors and the competitive landscape of vehicles. At the same time, the pricing numbers provided to consumers and the industry are meant as guides.