Re: Negotiating Used Car Prices?
It really, really depends. Your best bet is to look at other comparable vehicles for sale. If/when you try to negotiate, the dealer will likely do the exact search that you would do and see what is for sale in the area and then use those asking prices to justify the asking price on the car you're looking at. Now that internet shopping is so common, some dealers put what is close to their bottom line on the internet so that it's more likely that people will come in to see the car. (Some dealers will price with more negotiating room, so it just depends.)
Besides KBB, look at Edmund's True Market value.
If you run a Carfax check, it should tell you when the car was listed for sale. If it's been several months, then the dealer might be more willing to negotiate on the price than if it's just been a few days.
Also be aware that this time of year is just the beginning of the "high" season for car sales, since people are getting tax refunds and making more big purchases. So you really don't have as much negotiating power as you would in November, for example.
Paying cash does not necessarily give you much, if any, advantage.