What IS that Sticker Next to the MSRP on a New Car?
This sticker next to the MSRP is a list of additional equipment that was put on the new car by the
dealer. ADM stands for Added Dealer Mark-Up. If you are looking at a hot new car that everyone
wants and that is difficult to get, the law of supply and demand comes into play. Oftentimes,
the dealer will want $2,000-$5,000 over the MSRP for that car. This extra amount of money
over the sticker price will be listed on the ADM sticker as added dealer mark-up or market value
adjustment. But in laymen's terms, its just the dealership setting their own price rather than
sticking with the manufacturer's suggested retail price. Any time you buy a car over sticker
price, you are paying the dealer's suggested retail price. Try to avoid this at all costs.
When a car is new to the marketplace, highly anticipated and the supply is low, the dealers
are the ones holding all of the cards. The smart way to negotiate on this car is to wait
six months to a year for the market to cool down. That way you will avoid paying the dealer
this huge profit.
A lot of times, the dealer will list on the ADM sticker such things as chrome wheels, lojack,
paint protection, undercoating service, dealer installed alarm, etc. Just because it's on the
ADM, doesn't mean that you have to pay for it. Almost everything listed on an ADM can be taken
off of the car or negotiated.
For information on invoice scams, visit
Edmunds.com and read through some of their articles.
While you're there, view their dealer invoice photos.