I find that not many dealers use Kelley values... they typically use NADA. I've never had an issue with them discounting due to carfax histories (infact I don't think I've ever had one check) but they do look at modifications and things of that nature. I had a pretty new car once that a dealer really robbed me on because I had modded it (in a bad fashion may I add) too heavily for them to sell it on the lot.
If the dealer gives you a hard time about a carfax I would take it somewhere else.
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