Private party sell price versus private party trade value – why the diff?

I see it all over the place, and have for years, where people place a different value to sell then they do to trade between private parties.

A guy wants $20k for his car, but will also trade it for $24k value. If the person he is trading with feels the same, that their own car would sell for $20k, but they would trade it for $24k in value, and then they trade cars - did they trade $20k cars or did they trade $24k cars, and who cares, and why is there even a difference?
Author: admin