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KBB vs real world..

When a private party/dealer is asking for an amount considerably higher than what the KBB specifies, how often is it talkdownable (if that's a word)? How do dealers usually price used cars anyway?
 
i've found that most cars sell for less than KBB private sale value. This is based on 5-6 transacations from me and my friends

-patchy
 
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