http://netscape.edmunds.com/advice/buying/articles/42962/article.html

It's long and probably many of us have seen such reports before. Also, I
think it first appeared a while back (there's a reference to selling a 1999
new car, IIRC). Edmunds recklessly doesn't indicate the dates. The author is
an undercover reporter posing as a car salesman. He worked at a
"high-pressure dealership that sold Japanese-made cars," then a "no-haggle
dealership that sold American cars." The following, while often stated here,
seems worth noting again:

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I'll repeat what Michael, my [car dealer's assistant sales manager], told me
about Caucasians . He said white people never come into the dealership.
"They're all on the Internet trying to find out what our invoice price is.
We never even get a shot at them. I hate it. I mean, would they go (to a
mall) and say, 'What's your invoice price on that beautiful suit?' No. So
why are they doing it here?"

I was already beginning to see the impact of the Internet because of
something that happened during my first few days there. I was sent to the
service department to talk to customers waiting for their cars to be fixed.
Salespeople feel this is a good source of leads to buy new cars. Say a
customer has just gotten nailed with a $2,000 quote for a transmission.
Now's the time to move in and pitch the virtues of a new car.

There were typically a dozen or more people waiting for their cars to be
serviced. They would either watch TV or read while they drank coffee and
Cokes from the vending machines. I handed out my business card and chatted
with a few people. One young guy was killing time by goofing around with his
Palm Top computer. He was outfitted in designer jeans and a T-shirt, so I
wasn't surprised to hear that he had just bought the radical new SUV our
dealership sold. Michael had told me these vehicles were selling for over
sticker prices, so I asked Mr. Palm Top how he made out.

"I got an awesome deal," he said.

"How awesome?"

"Three hundred below invoice," he smugly answered.

I asked how he did it. He said he checked prices on the Internet. He then
called the fleet manager and made the deal over the phone.

I had a schizophrenic reaction to this. Part of me admired the fact that he
had outfoxed the dealer. But the car salesman side of me was angry that I
never "got a shot at him." It seemed like just a matter of time before
people who, in the past, walked onto our car lot, would be on the Internet
making deals.

The salesmen are only vaguely aware of this developing trend. I was standing
on the curb next to George and we saw one of these high-demand SUVs ready
for delivery.

"Another damn Internet sale," George said. "Why don't they turn that car
over to us? We'd get a grand over sticker. Instead they're selling it at
invoice. Does that make sense?" As the days passed I noticed more and more
cars marked "carsdirect.com." And as I approached people on the car lot they
often informed me that they were here to see the fleet manager. More
Internet customers.
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