> Car dealerships don't work that way,
Quite true. This isn't a car dealership. Doing website support for small businesses in medium and small markets often does work that way. They have a site, they would prefer that things are added to it, instead of a complete replacement. Back when I was doing webapps in this situation, the business would often insist on running the site from their T1 or ISDN line, refusing to spring for hosting someplace where they can't see the physical hardware to reassure themselves that there is something there.
"You want to back up the database for testing? No, just connect to the production database."
"No, you don't have access to webserver config; just build it in a folder." (It turns out that they don't have such access, either, since they "had a disagreement" with the guy who set up the box for them before he left on bad terms. Asking about how to contact this guy is apparently suspicious).
"You want us to sign a contract? We'll look at it." (They never get back to you, since they can find a dozen other people who are grateful for the promise of payment).
"Pay before it launches? Oh, no, we pay net 60, but our site says 'New site coming Oct 1st!', so unless it's up then, there's no reason for us to pay you." (Of course, they put this up without consulting you after you agreed to start prototyping).
And this is to say nothing of the people who insist on detailed designs and specification documents, then say, "Actually, we're going to wait a little while", and then you find your designed system on their site creaking along like it was written by the nephew of the boss's secretary, who totally learned computer science stuff in high school this semester. Surprise! It was written by that guy, except they hired someone else at $15/hr to randomly change things until it worked, since he had to go back to school when spring break ended...
It's not that there are a few businesses that operate like this: this seems to be the majority of small-town businesses who need webapps. When I ran a business doing webapps and web design in the mid-2000s, I'm not sure I ever ran into an end customer who didn't try to pull something I found really shady, though for them it was just the normal way they think they have to deal with vendors so that they can stay in business.
When I gave up and got a salaried job in 2008, my stress evaporated, even though it was a job at a failing startup. :)