Dealer fee glossary
Market adjustment
Also called: Market adjustment markup, Addendum sticker, ADM
A market adjustment (or additional dealer markup) is an amount added above the advertised or list price when a model is in high demand. It is pure margin, often printed on a second addendum sticker, and it is entirely negotiable, walk away if a dealer will not remove it.
- Typical cost
- A few hundred to several thousand dollars
- Mandatory?
- No, this is optional dealer margin
- Negotiable?
- Yes
What it is
When a vehicle is hard to get, some dealers add a market adjustment on top of the price to capture extra profit. It usually shows up as a separate addendum sticker next to the main window sticker, with a line like market adjustment or additional dealer markup.
Unlike taxes or a state-capped doc fee, this charge has no fixed basis, so it is the most negotiable number on the deal. In a normal market you should not accept it at all; in a tight market, treat it as your primary negotiation target and compare other dealers before agreeing to any markup.
Frequently asked
What does market adjustment mean on a car price?
It is an extra amount the dealer adds above the list price because demand is high. It is not a tax or required fee, it is added margin, and it is negotiable.
How do I get a market adjustment removed?
Ask for it to be taken off, get quotes from other dealers, and be ready to walk away. Because the markup has no fixed basis, competition is your strongest tool for removing it.