KBB, NADA or Edmunds?

May 12, 2008 8:19 AM

KBB, NADA or Edmunds? Which one should I use when buying a car?

I was looking at a used 1998 Honda Accord Ex (V4) with 92,000 miles from a personal seller and the asking price was $6500 and it has small cosmetic damages for which the Honda dealer has asked $400 to repair. So the total cost of the car would be $6900 for me.

When I checked the value of the car online I got the following figures.
NADA - $6925 (Clean Retail) (click here)
KBB - $5350 (Private Party - Good) (click here)
Edmunds - $5000 (Private Party) (click here)

He has determined the value of the car according to the NADA value, but from what I see it's not a valid estimate. I belive the KBB value $5350 is a more accurate estimate.

1) Why is these 3 values have such a variation for the same car?
2) What do you normally use in a private sale?
3) What do you normally use if buying from a dealer?
4) Anything else that you would like to tell me?

posted by WizKid to travel & transportation (8 comments total)

well, of course he's going to want to sell it for the higher price.

the only senible thing to do is haggle between what you want to pay and what he wants you to pay.
posted by ArgentCorvid at 8:37 AM on May 12, 2008

The NADA price is a retail price, i.e. the price you would expect to pay at a dealer. The other prices are prices for sales from a private individual. You pay more if you buy the same car at a dealer, so that price is higher.

You don't have to pay the asking price and the seller probably doesn't expect that you will. Make an offer that you are comfortable with that is somewhere near the two lower values. If you want to haggle, then start even lower. Provide the seller with copies of the KBB and Edmunds estimates.
posted by ssg at 8:39 AM on May 12, 2008

Over and above those values, there is the question of what similar cars are selling for locally. Have you seen similar cars for sale in the paper (or Craigslist, etc) recently? The asking price doesn't tell you what the selling price may have been, but at least it gives you a sense of what people are asking, and if this is a fair starting price locally. National averages are helpful, but sometimes pricing can vary a lot locally, because of what people are wanting, the climate, road salt, or other issues.
posted by Forktine at 9:07 AM on May 12, 2008

Good, clean Hondas carry a premium in the re-sale market, too.
Additionally, cosmetic repairs don't usually enter into the cost equation, since it would be an elective repair on your part. It's not something which must be done in order to make the car safe or road-worthy.
posted by Thorzdad at 9:26 AM on May 12, 2008

the only senible thing to do is haggle between what you want to pay and what he wants you to pay.

His asking price was $6800 and I had to haggle some what but he said that he is not willing to go below $6500. Currently I'm thinking of walking away from the deal, coz even though it's a nice car seems to be like I'm taking a $1600 loss to begin with.
posted by WizKid at 9:52 AM on May 12, 2008

Have you seen similar cars for sale in the paper (or Craigslist, etc) recently?

I'm in a small college town and car market is kind of slow moving. Also I'm specifically looking for a Honda or a Toyota and nothing else.

About a week back there was a 1997 Honda Accord LX (51,000 miles) and the asking price was $5900 (even though the KBB value is $5300) and the car got sold within 2 days.
posted by WizKid at 9:55 AM on May 12, 2008

About 6 months ago, I bought an Audi for less than any price listed on KBB, NADA or Edmunds, so only pay so much attention to those. It comes down to how bad you want the car and how bad they want to get rid of it.
posted by allelopath at 9:56 AM on May 12, 2008

In general, I find that Edmunds is the best estimate for "this is a great deal". That is, of course, assuming the vehicle you're looking at is in the state that you believe it to be and there aren't any hidden problems. This, of course, means you might want to be more careful and look harder for problems on a car valued at the Edmund's price point.

My experience with NADA is that they are altogether too high if you are shopping from private sellers.

I'd second Forktine, and suggest looking at similar cars in your area, to see what the going rate is.

As Thorzdad pointed out, Hondas do tend to hold high resale values, but that should generally be figured into the Edmunds/KBB/Nada price (though they may each calculate it their own way, of course). Also, don't be fooled about the cosmetics - a great number of people do care about the looks of their cars, and poor cosmetics will change the sale price if it is a big enough issue. A tiny scratch on a 4 year old vehicle, no. A giant scrap down the side of an '06 - absolutely. That seems obvious, though.

1) Why is these 3 values have such a variation for the same car?
Each site has their own formula, and make certain assumptions, obviously. Consider also that these sites (except KBB?) give you the ability to add options (leather, moonroof, etc), as well as rate the car's overall condition.

2) What do you normally use in a private sale?

I try to shop in the Edmunds range, but am realistic that it is the bottom of the range, not the top.

3) What do you normally use if buying from a dealer?

I don't.

4) Anything else that you would like to tell me?

As allelopath points out, there are innumerable market variables involved. How badly do you want that specific car with those specific options? How badly does the seller want to get rid of the car (or get rid of what they see is a problem waiting to happen)? In the end, you just need to know what you're looking for, what you're willing to spend, and how much risk you're willing to take.
posted by mbatch at 11:04 AM on May 12, 2008