NADA Value


If you are shopping for cars, RVs, motorcycles, boats, and more, then you are probably hearing terms like NADA value. You may be wondering how it will affect your car, motorcycle, truck, boat, or RV loan. Once you understand the basics of the NADA value, then it’s easy to see how it can positively affect your loan.

Why does the National Automobile Dealers Association matter so much for vehicle value?

NADA is the National Association of Automobile Dealers. The first NADA guides were issued in 1933 in the Great Depression at the request of the federal government. Over the years, the NADAguides have become the premier resource for finding the value of vehicles in the used vehicle industry. Since 2015, the NADAguides have been licensed to J.D. Power.

NADA Vehicle Value; From a Harley-Davidson to a big RV

The NADA value is the value of your used vehicle based on many different value factors. The NADA guides have values for automobiles, motorcycles, boats, RVs, and even manufactured homes. The NADA guides give or provide multiple values for each vehicle. This depends on whether it is the auction value, actual cash value, retail value, trade-in value, private party value, or even the used car or new car dealer price. The prices are compiled from actual purchase information and are regularly updated. This provides some of the most important information when it comes to used car values, and is a useful research tool online for anyone looking to sell their vehicle at a fair price, offering several options as well. An individual owner, an automotive dealership, banks, auctioneers: they all rely on NADA to find out more about the automobile marketplace.

NADA Value Factors

Several different factors affect the NADA value of your vehicle. In fact, all of the factors combine together to give an accurate picture of the genuine value of the vehicle. Sentimental value is not one of these. There are four major factors that affect NADA value:

  1. Location of vehicle
  2. Optional Accessories
  3. Mileage
  4. Condition

It’s pretty straightforward to know that mileage and condition affect the value (if you didn’t know, you can check a vehicle’s history report on the guide by NADA as well). It’s something car dealers also take into account all the time, but less so when it comes to vehicle location and optional accessories.

Optional accessories affect NADA value because they definitely add value to a vehicle. Of course, optional accessories like automatic transmission and air conditioning are very important selling points for a vehicle. Generally, the more optional accessories or products the vehicle has then the higher the NADA value is.

What the NADA value book says about location

Location affects pricing as well. Not only is there a rural vs. urban divide when it comes to car prices, but there is also a regional disparity. This disparity can be caused by economic differences between areas. It can also be caused by supply and demand issues. There can even be seasonal price differences. Not surprisingly, there is less demand for a convertible model car in December in a place like North Dakota than there is in another state like Florida. While location doesn’t play a huge part in vehicle values, it is something to be aware of.

NADA compared to the Kelley Blue Book (KBB) about car worth

NADA Guides (National Appraisal Guides) shares the vehicle valuation market with Kelley Blue Book (KBB), and many consumers often want to know which of these tools is better. They both are trusted guides for vehicle valuations with almost a century of experience, but there are some key differences, mostly in how they calculate the value. NADA relies more on hard data about sales and prices from sellers, retailers, trying to be more comprehensive, while the KBB focuses on auctions a bit more. More importantly for us, unlike the NADA Guide, KBB does not offer valuations for RVs and motorhomes, focusing just on used cars, new cars, SUVs, and trucks.

NADA Values & Car, Boat, or RV Loans

Now that you know a little bit about NADA values, it’s important to know how NADA values affect your loan when you apply for it. When a bank, credit union, or finance company gives you a vehicle loan, they are securing the loan with the value of the vehicle. The NADA value tells the bank just how valuable the vehicle is. This provides them with how much they can loan on the vehicle and how much down payment you’ll need to come up with.

NADA Value

Knowing the NADA value can help you in two ways when it comes to the business of getting an auto loan. First, you can negotiate a better price using the NADA value as your guidelines. When buying a used car, you shouldn’t pay more than the NADA value, no matter how much sentimental value the previous owner puts on the car. Secondly, you can ensure that every optional accessory is listed on the loan application to ensure that the maximum NADA value is shown. This could even result in a lower down payment, depending on the lender. Knowing the NADA value and how important it is to your car loan will help you get the best value for your money.

Contact us, Southeast Financial, today with any questions regarding financing, refinancing programs, gap coverage, insurance, and more.