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The second value is a trade in value which differs in that of Kelly Blue Book. KBB bases their trade in values on actual cash values. NADA bases their trade in value on what a consumer should expect to receive for their vehicle when traded in on a brand new vehicle and is figured from the sticker price. This most often figures in what dealers' term as an over allowance and is often higher than the actual cash value the dealer is truly paying for the vehicle. For this reason, an offer at or near the NADA trade in value may be a fair price to consider even in a private party transaction. The third class of value NADA uses is the loan value. This figure is the lowest and is typically used by banks when determining the amount of advance they would allow when lending money using the vehicle has collateral. Banks like to be in an equity position when loaning money to protect their interest in the loan. What this means is that the loan value is usually lower than the actual cash value of the vehicle. Therefore it is strongly recommended to hold out for a better offer. NADA is most often used by banks and may have to be considered if the potential buyer is seeking to finance the purchase.

Black book is another guide to consider. This guide may be harder to find for consumers however, as it is most often used by dealers. The values in this book are wholesale values and are rated by condition. They are based solely on what similar vehicles are selling for at local auctions. Values are rated from rough to extra clean in condition. If using this guide, clean book is a reasonable asking price for a private party as dealers most often try to stay within the rough to average range with vehicles in their inventory. They often price their vehicles in the clean to extra clean range with the difference being their profit margin. If you price your vehicle within the same range you will be competitive with the dealer and the buyer most likely will save money by avoiding sales tax and dealer fees.

Once you have compared the estimated values by using the guide books, you should go on line and compare asking prices for vehicles of the same year, make, and model listed in the various vehicles for sale listings available. Several options are cars.com, autotrader.com, autoextra.com, craigslist.com, and other similar sites. I do not recommend eBay for pricing estimates as there are too many variables in the listings. Most eBay listings have a reserve and do not show what the seller truly

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