NADA stands for National Automobile Dealers Association. It was founded in 1917 by a group of dealers determined to lower the luxury tax on automobiles from 5% to 3%. NADA was established in order to protect the interest of car dealers across the United States. In 1917, a coalition of dealerships petitioned the US Government in an attempt to alleviate the high taxes on luxury vehicles. When the petition proved successful, NADA developed into a permanent organization aimed at representing fair and regulated automobile values across the country.
It represents nearly 17,000 new-car and truck dealers, both domestic and international, with about 37,500 separate franchises. It is not just a blue book looking after a confined category of vehicles, instead, it offers information and statistics on Trucks, Motorcycles, RVs, classic cars, ATVs and even boats.
The term Blue Book refers to the compilation of statistics and information. The term came into existence in the 15th century, used by the Parliament of the United Kingdom for record-keeping. It is more of a style guide which prescribes the widely used legal citation system in the US. It serves various departments like Jewelry, Legal, Media, Science, Transportation etc. The automobile blue book was an American series of road guides for motoring travelers in the US and Canada. By 1910, it became the standard publication of its type.
NADA Guide is one of the famous valuation providers in the US which was primarily designed to list prices strictly for dealerships. NADA Guide was created in print in 1971 and went online in 2000. It was initially developed to alleviate taxes on automobile sales, and for this reason today it is used primarily by dealerships in regards to new vehicles as opposed to used vehicle sales.
NADA Guide generates its listings solely from dealership databases which log each vehicle sold through dealerships across the country. This log is then used for future reference when a similar vehicle is purchased. Since it operates primarily with new vehicles, which are typically in excellent condition, they list higher values.
The value NADA lists in its NADA Book is often higher when compared to others, like Kelley Blue Book since it primarily pertains to newer vehicles and is therefore utilized as a basis for tax determination. This high value is determined by the average price of vehicles sold wholesale from dealerships across the country.
You can buy a NADA Guide online from the “Buy a Price Guide” link. NADA Book will automatically update prices monthly, keeping you up-to-date with the most recent vehicle values. Keep in mind, though, that while this guide is great for pricing, it is not able to properly assess unique additions to your vehicles, such as customized tires or stereo equipment. These modifications can greatly change the value of your vehicle.
NADA Guide’s online tool offers great assistance in buying/selling a car. It gives users the option to list the condition of the vehicle on a range from Excellent to Poor, which will adjust the price and value, resulting in a more accurate quote. Just like the physical copy of NADA Guide, the online tool makes the evaluation a very quick process. All you need to do is, provide the information: Make, Model and the Year of Manufacture and you will get an estimated value within a few seconds.
The efforts put in by NADA has made the buying/selling process much easier and has helped millions of buyers and sellers in the US.