Back to Tactics Library
Price Gouging

Market Adjustment / ADM

That "Market Adjustment" sticker? It's a dealer-added markup on top of MSRP (the "Manufacturer's Suggested Retail Price"—the price the carmaker recommends). You don't get extra value for it—you just pay more.

What Is a Market Adjustment?

The Simple Version

A 'Market Adjustment' or 'ADM' (Additional Dealer Markup) is an extra charge some dealers add on top of MSRP when a car is in high demand. Unlike MSRP (set by the manufacturer), this is dealer-set pricing that you may be able to avoid by shopping around, ordering, or waiting.

The Economics Behind It

When demand exceeds supply (new model launch, limited inventory, etc.), some dealers add ADM. Some buyers pay it to get the car sooner, but others find dealers selling at MSRP if they shop around.

Why It's Different From MSRP

MSRP (Fair)

Set by the manufacturer. Represents the intended retail price. Dealers may still earn profit through a mix of margin and other programs.

ADM (Gouging)

Set by the individual dealer. It adds cost on top of MSRP without adding vehicle value. Whether you pay it depends on availability and your timing.

The Hidden Damage

Paying ADM doesn't just cost you now - it can hurt later:

  • Negative equity risk: Resale value usually doesn't reflect the markup you paid the moment you drive off
  • Higher loan cost: If you finance it, you pay interest on the markup too
  • Insurance mismatch: Insurance payouts are typically based on actual cash value, not what you paid
  • Tax hit: In many places, taxes apply to the markup too

Real Numbers

// Example: markup true cost

Markup: $5,000

Sales tax (example 7%): +$350

Interest (example 6% over 60 months): +$800

Example total added cost: $6,150

That's $6,150 in added cost with no added vehicle value.

How to Avoid Paying ADM
1

Email multiple dealers (the "blast radius" approach)

Contact multiple dealers within a reasonable distance. Ask specifically: "Do you sell at MSRP without market adjustments or mandatory packages?" Some do - they just don't advertise it.

2

Place a factory order

Some brands and dealers allow factory orders. When available, ordering can reduce pressure to pay ADM. Always confirm pricing and deposit/refund terms in writing.

3

Wait if you can

Markups often fade as inventory improves and demand cools. If you can wait, you may avoid paying above MSRP.

4

Check manufacturer programs

Some manufacturers discourage ADM on certain models, but enforcement varies. Don't rely on policy rumors - get pricing in writing and compare multiple dealers.

5

Use community intel

Model-specific forums and local groups often share which dealers sell at MSRP and which add markups. Use it as a lead, then confirm pricing in writing.

Watch Out For These Tricks
  • "Mandatory accessories package" - Often the same idea as ADM, just renamed. Ask for an itemized list and a price without it.
  • "Protection package already installed" - They claim it can't be removed. Ask to remove the charge, choose a different unit, or shop another dealer.
  • "We're the only one with inventory" - Rarely true. Email other dealers. Drive further if needed.
  • "The markup covers our costs" - Dealers have overhead, but this is still an extra charge. Compare offers and decide if it's worth it to you.
  • ADM hidden until you arrive - Always confirm "out-the-door price at MSRP" in writing BEFORE visiting.
Email Template: Finding MSRP Dealers

Subject: [Year] [Model] - MSRP Purchase Inquiry


Hi,


I'm interested in purchasing a [Year] [Model] [Trim]. I'm a serious buyer with financing ready.


Before I visit, I need to confirm: Do you sell at MSRP, or do you add market adjustments / mandatory packages?


I'm contacting multiple dealerships and will purchase from whichever offers the best deal at MSRP. If you have the vehicle in stock or can place a factory order at MSRP, please let me know.


Thank you,
[Your Name]
[Phone Number]

Send this to multiple dealers. You'll quickly find out who plays games and who wants to earn your business.

When ADM Disappears

After launch hype fades: Inventory builds, demand cools

End of month/quarter: Dealers may be more flexible to hit targets

When incentives appear: Manufacturer specials can change pricing

When supply improves: Markups often soften over time

Quick Script

"I'm not willing to pay above MSRP. If you can sell at sticker, I'll buy today. If not, I'll factory order through another dealer or wait until inventory normalizes. What can you do?"

Ready to make contact?

Use our email templates to contact multiple dealers and find one who sells at MSRP.

Get Email Templates