The refinance on the house is also a very smart way to do a new vehicle purchase right now.
I hate it when car salesmen go and use extraneous factors and then figure them into your deal. When I turned my leased Cadillac STS in, I almost leased a new one. I couldnt make the dumb saleswoman understand that the $1,000 customer loyalty bonus that I had with me (it was mailed to me) was not to be factored into the price workup. I wanted the car for a specific dicount, then I would use the loyalty cash as a downpayment on the lease, it was NOT part of the deal she and I were forming. I finally just walked, thats when I shopped Benz, BMW and Lexus, and finally wound up with my LS400.
Tell him "I said the price needed to be $16,000. That means, you and I need to sign on the fact that we have agreed that I will purchase the car for $16,000, THEN we can talk about the trade. The trade is NOT part of the purchase price we're negotiating. If thats too hard for you to deal with, then we'll take my Jeep right off the table and I'll sell it myself, but that wont change the fact that you need to come down to $16,000 or we have no deal, any other offer is just a waste of our time, can you sell the truck for $16,000 independant of my trade?"
wait for his answer, if he says yes, take it.
If he says no, then say "Call me when you can" and get up and leave.