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I've heard salesmen even convincing people to pay over MSRP before.  Not exactly sure.  I suppose they just convince you that another buyer is going to grab it if you won't.

Regarding the dealer add-ons.  Sometimes they can be mutually beneficial for both sides.  If it's not too overpriced and something you were going to do anyway, then you can now roll the cost into the loan rather than pay full price for it elsewhere.  Of course, if you don't want it and are paying a signficant part of price of front...nope.