Sourcing Auto Loan Values: Kelly Blue Book and Nada Guides Compared

Kelly Blue Book and Nada Guides serve as the base assessment for the actual value of the vehicle you are purchasing. Most lenders will quote you a loan to value based on one of these two factors. They are very similar, but are different in a few key areas.

  • Kelly Blue Book (KBB) deals with a number of different consumer products while National Auto Dealers Association (NADA) specializes specifically in auto values
  • KBB assesses values monthly while NADA typically focuses on weekly auction values to set approximations
  • KBB uses a more complete assessment of the various factors of the car such as the state of the leather, mileage, etc., while the NADA uses fair market value based on recent sales of comparables to determine the price

While neither assessment is "right," NADA tends to be the industry standard with dealers; while KBB is used more frequently in independent auto sales. If you are getting a dealer direct loan, you should use the NADA values for this reason.


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