I was helping a friend to buy a cheap car in good condition in California (less than 100k miles for less than $8000) and we looked into Craigslist for cars, since we thought that Craigslist was cheaper than most other options. Auction wasn't a good option since we needed the car quickly and quality there varies and we don't really know how to deal in auctions.
I was surprised that almost all cars advertised as being in good condition were actually worth much less than that, and almost half of them were suspected to have the odometer rewound. We tried to negotiate the price for some but the sellers were always firm. We ended up buying one in a dealership with warranty within the same price and mileage range. Why are people selling cars on Craigslist for so much above the KBB prices, more than they're worth? Are sellers expecting to be negotiated for a lower price more aggressively?
EDIT: After a bit more experience dealing with Craigslist people it learned that indeed sellers expect hard negotiation. However, when I sell there, I don't negotiate my prices and I also have success, albeit the sale takes a little longer.