What happens when a veteran automotive journalist goes undercover to work as a car salesman? The answer is a revealing look at an industry that, for decades, has been built on psychology, profit margins, and yes, some tactics that might make you raise an eyebrow.
Several years ago, someone did exactly this. They spent months working at dealerships in Southern California, learning the ropes from seasoned sales managers and competing with hungry salespeople on commission. What they discovered was an eye-opening look at how the car buying process really works from the other side of the desk. And here is the interesting part: while much has changed in the car-buying world, some of those old tactics are still lurking in dealerships today. But you are more protected than ever before.
The World of Commission and Profit
Let us start with the financial reality of car sales. Back when our undercover journalist walked onto that lot, salespeople worked on straight commission. No cars sold meant no money earned. The dealership would then create a commission structure that rewarded higher profits. If the dealership made a profit of 0 to 749 dollars on a car, the salesperson got 20 percent of that profit. If the profit jumped to 750 to 1249 dollars, the commission bumped up to 25 percent. And if you hit 1250 dollars or more in profit, suddenly you were earning 30 percent.
What does this mean in plain English? The system created a powerful incentive for salespeople to maximize the profit on each deal. Not to get you the best price, but to get you the highest price possible. This motivated salespeople to look for ways to build profit into the deal at nearly every stage of the transaction.
Meet the Four Square: The Dealership’s Most Dangerous Worksheet
One of the most famous tactics taught to salespeople is something called the four square worksheet. Despite its innocent name, it is essentially a negotiation tool that is designed to confuse and distract buyers from what really matters: the actual price of the car.
Here is how it works. The worksheet is divided into four sections. One box shows the price of the car. Another shows the value of your trade-in. A third shows your down payment. And the fourth shows your monthly payment. The salesperson fills these in with what the dealership wants you to pay, not what you want to pay. These opening numbers are deliberately inflated, a tactic sometimes called the opening salvo.
Then, the real game begins. You start negotiating. You say the monthly payment is too high. The salesperson erases that number and writes in a lower one. But then the trade-in value mysteriously drops. Or the down payment requirement goes up. The entire point of this worksheet is to move numbers around so many times that you lose track of what you are actually paying for the car. You become so focused on one number that you forget about the others. By the end, you think you negotiated a good deal because one or two numbers came down, when actually the dealership still made their profit target.
The Test Drive Trick: You Are Not Really in Control
Here is something that might surprise you. When you ask for a test drive, you think you are making the decision. But at many dealerships, the test drive is carefully orchestrated to get you to buy.
One salesman explained it like this: when a customer looked interested in a car, he would not ask if they wanted to test drive it. He would simply open the door, say something friendly, and drive away. Why not ask? Because he knew that many customers would say no if given the choice. They would worry they might like it too much and be pressured to buy. But if the salesperson just takes them on the test drive without asking, most customers will go along with it. And once you are behind the wheel of a car you like, with the wind in your hair and the engine running smoothly, the dealer figures you are much more likely to buy.
During that test drive, the salesperson keeps talking. They point out the headlights, the gas cap, the trunk, the brakes. The information does not really matter. The goal is to keep talking and build your confidence in the vehicle. They want the feel of the steering wheel to stay with you after you get back to the lot.
The Pressure Cooker: What Salespeople Actually Fear
Here is something interesting. Many people think that car salespeople are monsters who love pressuring customers. The truth is more nuanced. Salespeople do apply pressure, but often not because they enjoy it. They do it because their managers pressure them.
The sales manager sits in a tower overlooking the lot. If a customer says they are just looking, a salesperson might nod and let them go. But then the manager calls them into the office and asks why they let a potential buyer walk around unsupervised. The manager explains that everyone says they are just looking. That is what customers say until they buy. If you step back and let them leave, they might buy from the dealership across the street instead.
So the pressure to stick with customers, to keep them engaged, and to turn them into buyers comes from above. The system is designed to catch people off guard, to score a quick sale, to exploit people who are weak or uninformed. Those are the targets of this high-pressure system.
How the Internet Changed Everything
Even back when our journalist was working undercover, the internet was beginning to disrupt the car buying game. Customers would walk into a dealership already knowing the true market value of the car. They had looked it up online. They had compared prices across dealerships. They had read reviews and checked vehicle history reports.
The salesman would watch a customer pull out a calculator on their cellular phone and suddenly felt threatened. The information advantage that dealerships had protected for decades was vanishing.
Fast forward to today, and the internet has completely transformed the car buying experience. According to recent research, 92 percent of people now use digital channels to research a vehicle before they even set foot on a dealership lot. They know the approximate value of the car. They have compared rates from different lenders. They have read independent reviews and accident history reports. They arrive armed with information that would have been impossible to obtain just 20 years ago.
The Trust Revolution: Why Dealers Are Being Nice Now
This is the good news. Because customers are more informed than ever, the old manipulation tactics are becoming less effective. The aggressive dealer who greets you with empty promises and misleading information is less likely to succeed. Customers will simply leave and buy from someone else.
Something remarkable has happened over the past few years. Trust in dealerships has skyrocketed. Two years ago, only 44 percent of car buyers viewed dealers as trustworthy. Today, that number has jumped to nearly 70 percent. Customer satisfaction with the overall car buying experience has also improved, rising from 60 percent in 2016 to 68 percent in 2024.
Why the change? Modern dealerships are beginning to understand that transparency is a competitive advantage. When you are honest about the price, the fees, and the condition of the vehicle, customers feel respected. When you build a sales experience around helping customers find the right car rather than squeezing them for every last dollar, people actually want to do business with you.
Major companies are reinforcing this shift. Google recently announced stricter transparency requirements for car dealership advertising. Starting in late 2025, any dealer advertising on Google must clearly disclose full costs and payment models upfront, taking direct aim at bait-and-switch pricing and misleading ads. This kind of enforcement makes it harder for the old guard to operate the old way.
Digital Tools Are Reshaping the Game
Successful dealerships today are blending digital tools with personal service in ways that actually make buying a car better. Interactive displays let you explore vehicle features in detail. Virtual reality tools let you visualize different colors and configurations. Real-time inventory management means you can find exactly the car you want without visiting 10 different dealerships.
Salespeople now use tablets and digital platforms to show you transparent pricing breakdowns, financing options, and trade-in valuations in real time. You can see the numbers as they are being calculated. There is less room for hidden surprises.
And here is what is really important: 86 percent of dealers say digital tools give them a competitive edge. That is not because digital tools help them trick you. It is because digital tools help them serve you better, faster, and more transparently. Good dealerships are racing to adopt these tools because they know it builds trust and loyalty.
What You Should Do When You Walk Into a Dealership Today
Armed with the knowledge of how the game works, you are actually in a stronger position than ever before. Here are some practical steps:
First, do your research online before you visit. Know the market value of the car you want. Check independent review sites. Look up the vehicle history. Use online tools to get a pre-approval for financing from a bank or credit union before you even talk to a dealer.
Second, do not let anyone rush you. If the salesperson or manager is pushing for a quick decision, that is a red flag. A good dealership wants you to be comfortable and confident in your decision. If they are manufacturing urgency, it is probably because they want to close the deal before you have time to think clearly.
Third, get quotes from multiple dealerships. Tell each one you are getting quotes from competitors and that you are ready to buy from whoever gives you the best overall deal. This is not being difficult. This is being smart. Dealerships expect this and respect it.
Fourth, focus on the out the door price. This is the total amount you will pay including taxes, fees, and all other costs. Do not get distracted by discussions of monthly payments or down payment amounts alone. The out the door price is what matters.
Fifth, remember that you have the power to walk away. This is your biggest advantage. A customer who is willing to leave and shop elsewhere has far more negotiating power than a customer who is desperate and trying to make a deal happen today. Salespeople know this. Do not let them make you feel pressured or obligated to buy.
The Bottom Line: The Game Has Changed
The car sales industry is not perfect. Some dealerships still use pressure tactics. Some still try to manipulate numbers. But the industry as a whole is evolving. The old ways are dying because they no longer work effectively in a world where customers have access to unlimited information.
The salespeople of today are learning that the best approach is not to try to outsmart the customer. It is to listen to what they want, help them find the right vehicle, be transparent about the numbers, and treat them with respect. When you do that, customers come back to the same dealership for their next purchase. They recommend their friends. They give positive reviews online.
So the next time you walk onto a car lot, remember that you are walking into a business that is in the middle of a massive transformation. Some dealerships are still clinging to the old playbook. Others have embraced a new way of doing business that is actually focused on helping you.
Your job is to be an informed, confident customer who does their homework and is willing to walk away if the deal does not feel right. Do that, and you will not only get a good price on your car, but you might actually enjoy the buying experience. And that would have been unthinkable just a few years ago.