Yeah, but who pays the asking price from a dealer? When I was helping my ex shop for her Aerio, they wanted $15,900 or some outrageous price for her '03. She got it for $11,500... which is right at true market value for that car with those options/mileage/condition. It's just a matter of working it out.
The dealers know what the car's actually worth, and they know what they paid for it on trade-in, so they've got a minimum number they have to sell it at. The longer that car sits, the lower that number gets. The way I look at it, if they're willing to sell it at TMV, then I'd buy it, if TMV is below their minimum price, then they want too much.
$14,000 for an '01 is a bit pricey, but not astronomical. Edmunds lists that car for $13,275 for dealer resale. If you could get it for $12,000 you're doing pretty good.
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