Step 2:
Contact the dealer to find out the interest rate, called the Money Factor, as well as the Residual Percentage rate. Multiply the residual percentage by the MSRP to get your residual amount.
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Step 3:
Subtract the residual amount from the net cost. Divide the difference by the number of months in the lease. For example, if the residual percentage multiplied by the MSRP is 15,000 and the MSRP is $20,000, the difference would be 5,000. Therefore you would divide 5,000 by the length in months of the lease. This amount is the monthly depreciation fee.
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Step 4:
Determine the finance fee by adding the sticker price and the residual amount. Multiply the total by the interest rate. This will be the monthly finance fee.
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Step 5:
Add the monthly depreciation fee and the monthly finance fee to calculate your monthly lease costs.

Resources

* Kelley Blue Book Car Values

History
# NADA was formed in 1917 by a coalition of automobile dealers who petitioned the US government to reduce the luxury tax on automobiles; after the petition proved successful, they decided to form a permanent organization that would represent the interests of car dealers around the country.

NADA vs. Kelley
# The difference between NADA Blue Book values and Kelley Blue Book values is that the NADA value is often higher, since it provides the basis for taxes. The NADA value of a car is compiled by averaging the actual wholesale prices paid in a given area of the country.
Other NADA Services
# The NADA provides additional services to both consumers and dealers, such as news about current events in the automotive industry and tips on buying the right car for your needs.
Charity Work
# In 1975, NADA created its first charitable organization, establishing the National Automobile Dealers Charitable Foundation, an organization which has since donated over $9 million to many worthy causes.
Accessing NADA Blue Book Values
# NADA Blue Book values can be accessed via the internet at nadaguides.com

NADA (N.A.D.A.) Official Used Car Guide (Vol. 74, Number 6, June 2007)

* NADA guides

Step 1:
Log onto the NADA.com website (see Resources below). NADA.com has links to each of the three main branches of the NADA (Consumer, Business and Dealer’s Association). Read each link’s information box carefully to know which services are offered through each branch.

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Step 2:
Use the “Consumer” link to access basic information about car values. From the Consumer section of the NADA site you can find new and used cars for sale, in addition to receiving preliminary appraisals on any cars you own.
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Step 3:
Download the e-Valuator software from the NADA Business section. e-Valuator offers an in-depth online guide to car values. Note that you need to subscribe to NADA Online to download the e-Valuator software.
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Step 4:
Use the “Car Prices” links in the NADA Consumer section of the website to find prices for cars that are similar to yours. By examining those prices you can get a clue as to the value of your own car. Remember that mileage, body damage and other factors can affect the value of your car.
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Step 5:
Buy the NADA price guide from the “Buy a Price Guide” link. The NADA price guide is a subscription service that updates car prices once a month for the duration of your subscription.

Tips & Warnings

* Subscribe to NADA online from the “Business” link on the main NADA website. A NADA subscription gives you access not only to information that can help you assess your car’s value, but also to “dealer-only” information on the prices and availability of cars, trucks and even farm equipment.
* Be aware that even though the NADA guides are great when you need to assess your car’s value, there are some conditions that the standard guides won’t accurately cover. Your car’s value will be higher if, for example, you have customized it. Use the NADA guides to give you a rough estimate, but for an accurate appraisal you should contact a trained appraiser.

Resources

NADA (N.A.D.A.) Official Used Car Guide (Vol. 74, Number 6, June 2007)

* Automobile resources from NADA.com

Identification

Step 1:
Kelley Blue Book is a book of car values that was developed in 1926 by a dealership owner named Les Kelley, who kept an extensive list of car prices for sellers and buyers. Kelley Blue Book values are now accepted as fair market value across the car industry.

Factors

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Step 1:
Your blue book value is based on the make, model, age, mileage and condition of the car.

Private Party

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Step 1:
The private party Blue Book value of a used car is what an individual will likely pay for it if you sell the car yourself. This estimate is accepted by most agencies and organizations as the “fair market value.”

Trade-In

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Step 1:
The trade-in value is what a dealer will likely pay for the car if you come in to buy a new vehicle in place of your old one. In most cases this value will be less than the private party value.

Considerations

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Step 1:
Many small claims courts will require that you get proof of the Kelley Blue Book value before you come in to file a claim regarding an automobile accident. You can only win up to the market value of the car in court.

Resources

What is Kellys Blue Book?
Have you ever had the feeling that you paid too much for that slime green boombox on wheels that you bought for your son’s birthday? Or did you overhear your colleague at work saying that he practically stole your SUV because you sold it way too cheap? With Kellys Blue Book, car pricing need not be rocket science or guesswork anymore, because Kellys Blue Book is the most highly recognized guide to car pricing that’s just within your reach.

Cars these days have gone beyond just being a ride or merely a vehicle that takes you from point A to point B. It is an extension of you – your personality, your style and your taste. You don’t just look for a car but for “the” car. And when you’re out there looking to buy “the” car or just simply trying to sell or trade in your old one, it’s best to consult the bible of car pricing – Kellys Blue Book.

In 1926, Kellys Blue Book started out simply as a  list of used cars that the author wanted to buy and how much he was willing to pay for them. Now, Kellys Blue Book offers an unbiased and trustworthy value, not only for cars but also for motorcycles, campers and motor homes , ATVs, boats and even for classic cars dating back to the 1940s. If it’s a motor vehicle you want to buy, sell or trade, there’s a Kellys Blue Book available for your needs.

In print, you can choose from any of the following:

1. Kellys Blue Book Auto Market Report – Official Guide
This is  used by auto dealers, financial institutions and others in the trade to price the vehicles they sell.
2. Kellys Blue Book Used Car Guide: Consumer Edition

This version helps ordinary people like you and me when we want to buy a used car from a dealer or from a private party. The Kellys Blue Book Used Car Guide is also a great reference if you want to trade in your automobile to a dealer or sell your used car to a private party. It gives invaluable information on the blue book for cars made in the last 15 years – an important requirement for any blue book car values price guide since over 60 percent of the vehicles on the road are 12 years old or older according to the National Automobile Dealers Association.

In  Kellys Blue Book Used Car Guide, you get a preview of private-party car prices value. This is the up-to date price you could expect to get for a car if you personally sold it to a buyer. You could also read about  Kellys Blue Book trade-in values, and Kellys Blue Book suggested retail values (including the dealer’s cost for any repairs and general dealer overhead such as paying salespeople, paying for advertising and keeping cars in inventory) on over 10,000 models of used automobiles.You could save thousands on a new car! Buy a New Car Online

Kelly Blue Bk Used Car Guide Jan-March 2009: Consumer Edition (Order Kelley Blue Book Used Car Guide Consumer Edition)

Actual selling prices of used cars and trucks, many of which are sold between private individuals, are almost impossible to find. But Kellys Blue Book has come up with an appraisal  method of computing a used car’s value by collecting information about the car’s price when new then computing its depreciation value based on previous model years, the quality of the car and the number of cars on the used car market. You can even calculate your car’s expected price by utilizing Kellys Blue Book for Cars charts and tables that help determine your car’s over-all value, based on the condition of the car (from excellent to poor), the vehicle’s mileage, optional components like built-in equipment, and the geographic area where the car has been.

3. Kellys Blue Book New Car Guide

This contains the Manufacturer’s Suggested Retail Price or MSRP and the dealer’s invoice prices or the price that the manufacturer charges the dealer for the car. It also contains information regarding any extra costs that may be involved, such as shipping, optional equipment – like that ultra-cool sunroof, DVD, etc. Kellys Blue Book New Car Guide places the value on vehicles for the current model year. The Kellys Blue Book new car values are collected from thousands of transactions from dealers across the United States and the blue book for cars reflects the actual average selling price that people pay when they buy their cars from new car dealers.

Online, you have the following choices:

1. Kellys Blue Book Pricing Report for both new and used cars

2. Kellys Blue Book Auction

3. Kellys Blue Book Trade-in

4. Kellys Blue Book Wholesale Lending

5. Kellys Blue Book Retail

The information in these are updated weekly and are distributed online.

After 75 years, Kellys Blue Book remains the standard for blue book value of cars and the consumers’ leading choice for reliable and unbiased car valuation. So go buy, sell and trade your car. You now have that confidence. With Kellys Blue Book, how can you go wrong?

Kelly Blue Bk Used Car Guide Jan-March 2009: Consumer Edition (Order Kelley Blue Book Used Car Guide Consumer Edition)

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Step 1:
Search Kelley Blue Book for the trade-in, private party or suggested retail value of a used car. By inputting specific information about the car, you can get a good sense of how much your car is worth in these three different types of transactions. Information you will need includes the make, model, year and mileage, as well as the ZIP code of where it is located and any features it has above and beyond the manufacturer’s standards.

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Step 2:
Discover information about Certified Pre-Owned (CPO) vehicles, including a definition of the program, what to look for in a CPO program, the advantages of one and how CPO vehicles are priced.
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Step 3:
Search Kelley Blue Book to get the Dealer Invoice, MSRP and New Car Blue Book Values of any new car. Once you have chosen a vehicle and navigated to its online page, you’ll have the opportunity to toggle between options. For instance, you can select and deselect features to see how they affect the price or you can view any current incentive offers for the vehicle.
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Step 4:
Read reviews and articles and see the ratings of new vehicles. Reviews include safety ratings as well as details about performance. Article topics range from information about financing to advice on how to choose a new car.
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Step 5:
Compare up to four vehicles if you are having difficulty narrowing down your options. You will be able to see the pricing, available features and performance information of your choices in a side-by-side format.
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Step 6:
Find financing and insurance help at Kelley Blue Book online. In addition to offering the opportunity to apply for car loans, Kelley Blue Book online provides a payment calculator and the means to search for insurance quotes. It’s also possible to get specific price quotes from dealers in your area by entering your ZIP code.
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Step 7:
Search Kelley Blue Book to find the values of vehicles other than cars and trucks. Kelley Blue Book online provides a section to look up the values of motorcycles, personal watercraft, ATVs and snowmobiles.
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Step 8:
Take advantage of the Kelley Blue Book’s used car listings to purchase a vehicle. After you’ve researched the prices, features and safety ratings, you can look for the car you want to buy. Searches can be narrowed down by location, price, year, make and model.

Tips & Warnings

* Typically, Kelley Blue Book provides information for the current and previous years of new automobiles.
* While not available online, the Kelley Blue Book print editions offer information about trailers and motor homes.

Resources

* Kelley Blue Book online

What They Cover
1. Both guides list prices for used and new cars, though this isn’t how they started (see below). Both now cater to consumers, though this too was not their original purpose. The two guides list thousands of cars, trucks, RVs and off road vehicles. They don’t cover antiques and collectibles, which are covered in specialty publications and websites.
Kelley’s Values
2. Courtesy Kelley Blue Book
Courtesy Kelley Blue Book
Les Kelley was a young man when he moved to Los Angeles and opened a small dealership with the profit he made selling his own car. Starting in 1914, the Kelley Kar Company grew rapidly until 1918, when Kelley began publishing lists of prices for the cars on his lot. The Kelley book expanded to include more models and years, but until 1993 it was meant mostly for dealers, not the general public.

The Kelley organization started out as a car retailer, then moved on to insurance and other support services, but throughout kept publishing its price list–aimed at dealers. Starting 1993, the Kelley guide became primarily consumer-focused, and the company was early in adopting an online presence. KBB.com debuted 1995, and soon moved to a free, ad-revenue model, with all prices and features available online.
NADA Origins
3. NADA stands for National Automobile Dealers Association , founded 1917 in an effort to cut taxes on car sales, about the same time Kelley published his first famous book. NADA’s first price list came out in 1933, amid the depression–and covered only used cars, though later the association shifted its focus to new vehicles. NADA moved its headquarters from Detroit to Washington, D.C., in 1941.

NADA is an industry association and a Washington lobby dedicated to promoting the interests of car dealers. NADA isn’t a private company; it depends on contributions from members to keep going, and it didn’t go online until 2000. Even now, the NADA public profile remains low compared to KBB.com and the third option, Edmunds.
Different Focus
4. Because of their different focus, the two calculate prices differently. Kelley prices tend to reflect mileage, condition, features and popular demand. Prices in the Kelley book are what consumers can expect to pay.

NADA prices are based on prices at auctions. Condition and mileage are less important, but demand is critical, as it helps determine auction prices. The prices listed in NADA publications are generally what dealers can expect to sell a vehicle for.
Bottom LIne
5. Courtesy NADA
Courtesy NADA
Car shoppers are often confused by this difference, since NADA lists overall higher prices for the same car than does Kelley. But this is because NADA estimates high to meet dealer expectations, while Kelley estimates low to accommodate a wider range of factors. NADA trade-in values are lower than those listed by Kelley–also because of the different segments each organization caters to. It’s natural for dealers to shoot for low trade-in values.

The bottom line: Both have merit and neither is truly authoritative–neither consumer nor dealer is obligated to follow these guides. But for consumers, Kelley or Edmunds reflects more closely the buyer’s perspective.

NADA (N.A.D.A.) Official Used Car Guide (Vol. 74, Number 6, June 2007)

Step 1:
Research the blue book value for the car’s make and model. The blue book value is its retail value through a dealer and assumes the car’s in excellent condition.

Step 2:
Look up the automobile’s wholesale price through the automobile blue book or NADA guide value websites. The wholesale price is also known as its trade-in value.

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Step 3:
Compute the average price between the retail and the wholesale price to determine the car’s current market value.
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Step 4:
Multiply the car’s current market value by the percentage used by your insurance company. Insurance companies use a percentage of the automobile’s market value, for example 75 percent of the market value equals the auto salvage value. The percentage varies from company to company. Contact your insurance company directly to determine the percentage it uses.

Tips & Warnings

* Websites such as Kelley Blue Book, Edmunds and NADA Guides can help you determine both the retail and wholesale value of the car.
* Looking up used car sales ads locally or online also can help determine the car’s current value.
* Because accurately determining auto salvage value is so subjective, you truly need outside input. Talking with you insurance company directly following an accident provides the most accurate salvage car value.
* Insurance companies don’t have a universal formula to compute automobile salvage value. The percentage of wholesale and retail automobile cost varies from company to company.
* The damage to a car impacts its salvage value greatly.

Resources

* Determine a car’s value with the Kelley Blue Book.
* NADA provides information regarding retail and trade-in value.

How to Calculate Salvage Value of an Automobile

Tips & Warnings

* Subscribe to a car price guide. This is a great idea whether you are just buying one car or want to make several transactions in the next year. Subscription based services like those offered by the National Automobile Dealer’s Association (NADA) enable you to get up to date pricing on a regular basis.
* Understand that even if you determine the fair market value of a car, the price may be higher or lower depending on demand. If you’re looking for a car that’s in short supply (like some hybrids) then expect dealers and private owners to ask for a higher price than they would for cars that are more prevalent in the market.

Resources

* Market values from KBB.com
* Car prices and reviews from Edmunds.com

How to Determine the Fair Market Value of a Car

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Step 1:
A Kelley Blue Book price guide gives the value of new and used vehicles including cars, trucks and sport utility vehicles. The value can be calculated at the Kelley website, www.kbb.com, or can be obtained from any automobile dealership. The Kelley Blue Book also provides values for motorcycles, snowmobiles and personal watercraft. The guide is a standard in the industry, and values are updated yearly.

Features

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Step 1:
Three different types of values are given for used vehicles. Trade-in value is the amount someone can expect from a dealer for a trade-in vehicle. Private party value is the amount a buyer can expect to pay when buying from a private owner. The suggested retail value reflects pricing at the dealer lot.

Significance

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Step 1:
The book provides three types of new car values. The manufacturer’s suggested retail price is determined by the manufacturer. Any dealer can decide to offer a vehicle at a price above or below its listed MSRP, depending on market value in a given area. Invoice price, or dealer invoice, is the amount that a manufacturer charges dealers for new vehicles. The new car blue book value tells what people are actually paying for a certain vehicle and is based on transactions reported from dealers nationwide.

Considerations

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Step 1:
Factors used in calculating value include the year the vehicle was manufactured, body style, features such as engine size and type of transmission and custom details such as sun roof, CD player, number of air bags, power windows and so forth. Other factors include mileage and general condition.

History

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Step 1:
The company was founded by entrepreneur Les Kelley in 1918 as an auto dealership in Los Angeles. Eventually deciding to expand the dealership, he began advertising for certain cars he wanted and the price he would pay. Soon car dealers and area banks came to trust these price lists as a standard, and Kelley published his first Blue Book as a regional service in 1926. After World War II, with the return of military personnel and the low number of new cars due to auto plants having been involved in wartime manufacturing, the demand for used cars convinced the company to produce a nationwide pricing guide.

Types

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Step 1:
The term “blue book” is used for price guides for other types of items as well, such as coins, tractors, airplanes, construction quotes and more. “Blue book value” has in some ways become a generic term for the standard value or expected price. By far the most common reference to “blue book,” however, is to the Kelley Blue Book.

Resources

* Kelley Blue Book website