This article discuss how Kelley Blur Book retail is a listing of what dealers are asking, not what they sell for, as a way to manipulate uneducated used car buyers:

Edmunds.Com: What is the Kelley Blue Book Price?

Yes very interesting article Michael!
I have noticed so many times in ads where the dealer is many thousands higher than similar cars for sale by private owners and other dealers. I suppose some dealers want to rip ya off every time u buy, or have so much headroom to play with. Why cant they just give u the best price up front?
Marketing tactics dont work for me on the lot, and discourage many from buying there.
Be honest about the car and reasonable on the car'* price up front..who knows..
They might even sell more cars.