Here's a long article by an employee of Edmunds.com who went undercover as a car salesman to learn the ins and outs of the trade. Basically, yes, car dealerships really are trying to rip you off.
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The comment login system is acting strange. If you get an error message saying you aren't logged in when you are, just reload the comment page and try again. I'm trying to track this bug down, but it's not easy.
Interesting how throughout the process of buying a car, people will still accept the process that your sales person has to leave the room or call the "manager". Screw that, if i am going to drop a load of cash on a car, that manager better be in the room with me, face to face, not hiding in some closed office, trying to play the game on me.
Not like i'd go to a dealership without being armed with my own research data anyway.
TF: I think the dealerships really focus on milking the dumb and uninformed. They don't seem to trouble with smart people as much.