ADM (Additional Dealer Markup)
A line-item markup over MSRP. Almost always pure dealer profit. Refuse it.
ADM is a "market adjustment" line item dealers add when they believe demand allows them to sell above MSRP. During the 2021-2023 supply shortage these were $5,000-$20,000+ on hot vehicles. In 2026 with inventory recovering, ADMs should generally be refused. If the dealer won't drop it, drive 100 miles — there's another dealer who will sell at MSRP.
01How to spot an ADM on a quote
It goes by many names: market adjustment, market value adjustment, additional dealer markup, dealer markup, or simply addendum. On the car, it is usually printed on a second sticker beside the factory window sticker, which shows the MSRP. Sometimes it is not labeled as a markup at all. A store may fold it into a large add-on package so the quote looks like it is at sticker. Compare the selling price line to MSRP, then read every line below it.
Ask for an itemized out-the-door price in writing. A markup is much easier to see and remove when every dollar has its own line.
02Is an ADM legal?
Generally, yes. MSRP is a suggested price, and dealers are independent businesses that set their own selling price. What matters is that it is disclosed. Being legal does not make it reasonable, and it does not mean you have to pay it.
03How to push back on a market adjustment
Email several dealers at once with the exact trim, color, and options you want and ask for an out-the-door quote at or below MSRP with no market adjustment. Stores that have the car and want to move it will answer. The ones that will not are telling you something useful.
If one store has the car and insists on a markup, reply in writing: I have a quote at MSRP from another dealer. Please remove the market adjustment and resend the out-the-door total, or I will buy there. Keep the competing quote ready to share.
For genuinely scarce vehicles, every store may hold firm for a while. Your options then are to wait, widen your search radius, or place a factory order. If you put down a deposit, get the price, the no-markup terms, and whether the deposit is refundable written on the order form.
04A worked example
Say the MSRP is $45,000 and the quote adds a $5,000 market adjustment, with a 6% sales tax rate. The markup costs you $5,000 plus $300 in sales tax on it, for $5,300 total, before any interest if you finance it. Removing the line takes the whole $5,300 off your out-the-door number.
Watch for the trade-off move: a store drops the ADM but adds a protection package or lowers your trade-in value by a similar amount. Compare out-the-door totals and trade numbers side by side so nothing moves to another line.
05Questions buyers ask
Can I negotiate below MSRP once the ADM is gone?
Often, yes, depending on the model and how long it has been in stock. Removing the markup is the first step, not the last. See how to negotiate a car price for the next moves.
Does an ADM affect a lease?
Yes. It raises the capitalized cost, which raises your monthly payment for the whole lease term. Ask for it to be removed before you discuss payments.
Is an ADM the same as a dealer add-on package?
No, but they work similarly. An ADM is a pure price markup with nothing attached. A dealer add-on package at least claims to include products. Both can be refused.
Have a dealer quote with this on it? Check it with the free dealer fee checker: every line comes back junk, negotiable or legit, with what it really costs.