Why does the blue book and bank loan prices differ on car loans?

I'm researching a used car. Kelly Blue Book and NADA guides state the value of the car at between $5500 and $6300. I've haggled the sale price down to $4800. However, the bank Ive spoken with about the loan says they can only loan $3500 on the car. Why is there such a discrepancy between the estimated value and loan value?|||they are protecting themselves - if they need to repossess the car because you don't pay the loan, they want to sell it quickly to a wholesale buyer, which yields them less money than a retail sale would.|||Car Loan Guide: http://carloanguide.automobiledeals.info

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