What is the Red Book of Used Cars The Red Book value is a basic term used in the car buying business. It means the worth or cost of a vehicle. This vital book determines the price of what dealers are willing to pay for a used car. * Where could you find the Red Book value? There are several resources responsible for determining the value of your car. The two most popular is the Kelley Red Book and the N.A.D.A. Appraisal Guides. The Kelley Red Book, which invented the term Red Book, is a principal source for determining the loan value on used cars. It has been providing information for 75 years. The N.A.D.A. Appraisal Guides, which was established in 1933, is another helpful Red Book that provides car buyers to review the car s worth. * How does the Red Book determine the value of a used car? The Red Book calculates the value of your car based on the make, the model and year. The book also considers factors such as conditions of the used car, mileage and other options. The majority of the popular Red Books are free for public use in their respective web sites. They provide user-friendly worksheets to help determine the appropriate value of a used car. Being aware of the Red Book value of your car would help you search for a fair deal. * How do you determine the amount you wish to spend on buying a used car? If you re planning to buy a used car, you should determine how much money you are willing to spend. Consider the additional expenses such as the tags when applying for a car loan, extra tax, and purchasing of the car title. * How does the Red Book determine the final values? Many organizations and individuals make use of the Red Book. Car auctions, private owners, rentals and fleets, franchised and independent dealers all use the Red Book to determine the final value. Used car values are determined by a respectable editorial process. Each process starts with an analysis of the collected data which include the current economic conditions, the historical trends, seasonality, location and industry developments. The final value reflects the most current representation of the changing car marketplace. Be a wise used-car shopper and avoid bad deals and investments. Check with the Red Book to find helpful guidelines in your used car purchase.