most of the time, dealers will figure about 15-30% "haggle" room UNDER kbb. Anything above that is usually fluff. $10,500 to 12,750 is the range I would shoot for. He's probabally still going to be making a nice buck on that.
Just keep looking over the car and find things wrong with it... "oh well what about this here, looks like a screw is missing, is that going to cost me?" "hmm, I'll take 200 off for that just in case you have to get it fixed, but the car works perfectly fine without it... blah blah" For me, that seems to be the most effective. That and going at a very off time when you have a few hours and they aren't busy. Waste some of his time, don't let him get involved with someone else. Everyone will give their own oppinions on how to haggle. Those tips are from an uncle that used to sell cars.
Sometimes you can even squeeze a free CarFax report out of them. Anyway... I'd say aim lower than your looking for now... you'll probably reach a happy medium.