Which method is used for determining the retail value of a vehicle?

The use of a car guide is the correct method for determining the retail value of a vehicle because these guides provide standardized information about vehicle values based on various factors such as make, model, year, condition, mileage, and market demand. Car guides like the Kelley Blue Book, NADA Guides, or Edmunds are commonly referenced by appraisers and dealers to establish a reliable and objective baseline for vehicle pricing. These guides aggregate data from numerous sources, allowing for a comprehensive view of market conditions.

Market analysis of similar vehicles can also provide useful insights, but it often lacks the objectivity and standardized data that car guides offer. While an insurance appraiser's estimate might consider specific damages and repair costs rather than valuing the vehicle as a whole, and the last purchase price reflects a historical transaction rather than current market conditions, car guides continue to be the most widely accepted and trustworthy resources for establishing retail vehicle values.