What “Market adjustment” means
A market adjustment, often labeled ADM (additional dealer markup) or “market value adjustment,” is an amount added on top of the MSRP. The manufacturer doesn’t set it and doesn’t get any of it. The dealer adds it because demand for that model is higher than supply.
It usually shows up on a dealer addendum sticker next to the factory window sticker, sometimes bundled with mandatory add-ons.
How it shows up at the dealership
The pitch is scarcity: “Everyone’s paying it,” or “We have three people interested.” Sometimes that is true for a few weeks after a launch. Often, a dealer two hours away is selling the same car at MSRP, or the markup quietly shrinks once a car has been on the lot for 30 to 60 days.
Worked example · illustrative numbers, not a quote
A $5,000 ADM, negotiated
| MSRP | $48,000 |
| Market adjustment on addendum | + $5,000 |
| Asking price | $53,000 |
| After quotes from 4 dealers in a 200-mile radius | MSRP at one store |
| Savings vs first ask | $5,000 (minus a few hours of driving) |
Illustrative numbers. On a genuinely scarce car you may need to place a factory order to get MSRP.
What to do
- Email several dealers, including ones farther away, asking for out-the-door quotes with no markup.
- Ask about placing a factory order at MSRP and the expected wait.
- Be willing to wait; ADMs often fade as supply catches up.
What to say
“I’m paying MSRP, not over. I have a quote at MSRP from another dealer. If you can remove the market adjustment, I’ll sign today; if not, no hard feelings.”
Also called: ADM, additional dealer markup, market value adjustment.