Both the National Automobile Dealers Association (NADA) and Kelley Blue Book (KBB) pride themselves on being very accurate when it comes to valuing damaged cars. Yet, both consider very different factors when estimating a car's value.
They're also intended to help different groups of people. For instance, true to the name, the NADA helps car dealers price new and old vehicles.
On the other hand, KBB focuses on helping consumers understand how much their vehicles could be worth. Here, you can learn about the differences between the NADA and KBB, including which one suits your needs.
For research purposes, we asked NADA to value two vehicles side-by-side. The first vehicle is a 2011 Dodge Avenger with 91,000 miles. The other car is a 2018 Honda Civic with 30,000 miles. While these cars are both very different, the NADA evaluated the same information when looking at each.
Here's a breakdown of what the NADA requested, along with the cars' estimated values:
Make | Dodge | Honda |
Model | Avenger | Civic |
Year | 2011 | 2018 |
Body Type | Sedan | Hatchback |
Trim | Sedan 4D Express | EX Hybrid |
Zip Code | 12210 | 98004 |
Mileage | 91,000 | 30,000 |
Add-ons | None | None |
Condition | Fair | Good |
Value | $7,675 | $23,878 |
A car dealer might run a used car's data into NADA to learn how they should price a vehicle. As the data above illustrates, newer cars with fewer mileage typically have higher values.
The KBB estimates cars' values using many of the same factors that NADA uses. Here's a chart comparing the same two vehicles:
Make | Dodge | Honda |
Model | Avenger | Civic |
Year | 2011 | 2018 |
Body Type | Sedan | Hatchback |
Trim | Sedan 4D Express | EX Hybrid |
Zip Code | 12210 | 98004 |
Mileage | 91,000 | 30,000 |
Add-ons | None | None |
Condition | Fair | Good |
Color | Red | Blue |
Value | $3,243 to $4,130 | $17,953 to $19,390 |
KBB is for consumers who want to get an estimate on their used car' value. When requesting an estimate, you can search two different values. The first is how much you could get if you trade in your car to a local dealership. The second one gives you a rough estimate of what you might get if you sell your car elsewhere.
KBB's estimates fluctuate based on supply, demand, and marketability. This means that you could get an estimate for your car one day, and the next, get an entirely different number.
How much your damaged car is worth depends on many factors, many of which are totally out of your control. For instance, according to U.S. World & News Report, your car will lose about 50 percent of its value during the first five years of ownership. However, some cars depreciate faster than others. The same publication found that luxury cars, such as BMWs, can depreciate even quicker.
Here are some things that could add to the value of your car, despite its damage:
Low mileage. A car's mileage indicates more than how far it's been; it also points to the wear and tear. Cars with more wear and tear typically need more maintenance than newer vehicles. As a result, a 2023 Jeep with 100,000 miles could be valued less than an older car with less mileage.
Any add-ons. Some car buyers are willing to pay extra for more features, such as heated seats and Bluetooth pairing. Both of these can add to your car’s resale value.
The car's make. Remember how most cars lose 50 percent of their value within the first five years? Some hold their values amazingly well. For instance, per KBB, a 2023 Toyota Tundra will retain 73.3 percent of its value over a five-year period. Luxury cars, like Jaguars, don’t fare as well, depreciating 54 percent in the same timeframe.
You could look up your car's potential value using KBB and NADA, then use your best judgment with the two very different numbers you get. Or, you could save yourself the headache and sell your vehicle to DamagedCars. But what does this entail? Well:
You fill out our easy form. To get an estimate, we just need some basic information about your car, including its make and model. Then, in just 90 seconds, you get a cash offer! It's up to you whether you accept, and there's no obligation.
You schedule pickup. We can come get your car within 48 hours of accepting an offer. We just need the car's title, the keys, and the clearance for our tow truck. If you don't have the title, that's okay; we could work something out.
You get paid. Want to go on vacation? Interested in getting a new vehicle? Sell your car to DamagedCars. Once we pick up your vehicle, you get paid almost instantly. Selling your car has never been easier.
NADA and KBB are both pretty accurate. However, keep in mind that these platforms are aimed at different audiences. So, consider the data above. At first glance, it may seem as though NADA offers more money for used cars. Yet, remember, this is a platform dealerships use to price vehicles. The goal is to make a profit.
KBB is different. KBB is for everyday consumers looking to explore their options. So, while the values may seem lower than what NADA estimates, they’re realistic estimates of what a consumer can expect to get for a used car.
The NADA is pretty accurate. However, as noted, it’s intended to help car dealers run businesses. Consider the Honda Civic that was valued at $19,390. This is how much a used car dealer would price the car. When offering cash for a trade-in, however, the dealership will likely offer less than it’s worth to make a profit.