You are using the sticker price for the basis of comparison, which is unrealistic. The appropriate comparison is final sale price.
Regarding trading in a car, I'm not sure if most people in the HN audience really think that they are getting a good deal on trade-ins. Also, trade-ins can be negotiated. You aren't going to get the market price, but you give up some money for the easy liquidity. It's going to take some extra work for you to get the market price.
Also, when you buy a used car from a dealer, you should look up the "Black Book" price, which is generally the price the car would go for at auction. This gives you information on the dealer's bottom line. The Black Book price is going to be a lot lower than Blue Book, meaning that it's well under the market price, and really well under the dealer's sticker price. But using this number, you know the dealer's position, and can adjust yours to drive value for both parties. I don't think it's totally inconceivable to get a used car from the dealer for close to what you'd get it from a private party, as long as you're willing to negotiate and the dealer is willing to negotiate.
Regarding trading in a car, I'm not sure if most people in the HN audience really think that they are getting a good deal on trade-ins. Also, trade-ins can be negotiated. You aren't going to get the market price, but you give up some money for the easy liquidity. It's going to take some extra work for you to get the market price.
Also, when you buy a used car from a dealer, you should look up the "Black Book" price, which is generally the price the car would go for at auction. This gives you information on the dealer's bottom line. The Black Book price is going to be a lot lower than Blue Book, meaning that it's well under the market price, and really well under the dealer's sticker price. But using this number, you know the dealer's position, and can adjust yours to drive value for both parties. I don't think it's totally inconceivable to get a used car from the dealer for close to what you'd get it from a private party, as long as you're willing to negotiate and the dealer is willing to negotiate.