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In order to reduce total drag during aerodynamic optimization process of the passenger vehicle, induced drag should be minimized and pressure drag should be decreased by means of applying streamlined body shape. The reduction of wake area could decrease pressure drag, which was generated by boundary layer separation. The induced drag caused by rear axle lift and C-pillar vortex can be reduced by the employing of trunk lid edge and kick-up or an optimized rear spoiler. When a rear spoiler or kick-up shape was installed on the rear end of a sedan vehicle, drag was reduced but the wake area became larger. This contradiction cannot be explained by simply using Bernoulli’s principle with equal transit or longer path theory. Newtonian explanation with COANDA effect is adopted to explain this phenomenon. The relationships among COANDA effect, down wash, C-pillar vortex, rear axle lift and induced drag are explained.