Retail pricing guides are used by vehicle dealers like us as well as by insurance companies and lenders like banks and credit unions to determine a vehicle’s current market value. The most well-known price guide is probably the Kelley Blue Book, but we do not use the Kelley Blue Book. Instead, we use the NADA Guide. Here’s why:
- The financial institutions we use for financing ask us to use the NADA Guide.
When we submit an auto loan application we must supply the lenders with information about the vehicle the customer wants to purchase. By law all vehicle prices must be the same whether a customer needs financing or not, so when we set the prices of our vehicles we consider the NADA price because it gives us an idea of how much the lenders we work with will be willing to finance.
- We find the NADA Guide to be a more accurate representation of prices in southwest Michigan.
The editors at NADA review over one million sales transactions per month to help determine their vehicle valuations. These transactions come from many sources and show actual retail sales. See for yourself: Choose any vehicle from the past few years and look up the retail price on NADAguides.com. Then search in this area on AutoTrader.com or Cars.com for that same vehicle and compare the prices.
Like other retailers we buy items at wholesale and mark them up to sell at retail. It’s how we make money and stay in business. If you want to trade in your vehicle we will research what similar vehicles have been doing on the wholesale market. Then, taking into account the mileage and condition of your specific vehicle, we will give you a price. It’s important for you to be aware that trade-in value is always less than retail value. We will either sell your vehicle at wholesale to another dealer or recondition it, service it, and mark it up to retail to sell on our lot. Only you can decide whether it is worth more to you to save yourself the time and effort of selling your vehicle yourself or whether you would rather get more money for your vehicle by selling it yourself.