Dealer fees › Market adjustment (ADM)
Market adjustment (ADM): do you have to pay it?
Verdict: Junk. It's the dealer's own markup over sticker, not a cost. Negotiate it to $0 or shop another dealer.
What it is
Extra profit the dealer adds above the manufacturer's suggested retail price (MSRP), usually on popular or low-supply models, often printed on an addendum sticker.
Also shows up as: Market adjustment, ADM (additional dealer markup), Additional dealer profit (ADP), Market value adjustment, Dealer markup.
Why it's junk
- Consumer Reports: it's not a mandatory charge, so it's worth asking for a discount, and paying extra up front usually means losing more as the car depreciates (Consumer Reports).
- The FTC and Arizona alleged a dealer group advertised low prices and then added surprise "market adjustments" at the dealership (FTC).
- FTC staff say the advertised price must include every charge the dealer requires, aside from government charges (FTC). A required markup should already be in the advertised price.
How to get it removed
- Ask two or three other dealers for an out-the-door quote on the same model without a markup.
- Tell the dealer you'll buy at MSRP (or below) and show competing quotes.
- If the car was advertised without the markup, ask them to honor the advertised price.
- Be ready to wait or walk: the markup is pure profit, so it's the most negotiable line on the quote.
Copy-paste script:
"I'm ready to buy at MSRP, but I'm not paying a market adjustment. Other dealers have quoted me without one. Please send me an updated out-the-door price with that line removed, and I can move forward today."
Is this fee on your quote? Snap or paste the quote and our free scan marks every line legit, negotiable or junk in seconds. Want an expert to check the whole deal? $19, money back if we find nothing useful.
How TrustBuy flags it
Our free scan and the $19 report use the same rules as this page: a market adjustment (adm) line is marked Junk (ask for it to be removed). Rule note: Pure markup; negotiate to $0.
FAQ
Is a market adjustment legal?
Dealers can generally set their own prices, but they can't advertise one price and then add a required markup. FTC staff say the advertised price must include every dealer-required charge except government fees.
How do I avoid paying ADM?
Get written out-the-door quotes from several dealers, buy where there's no markup, or wait until supply improves. Consumer Reports notes it's not mandatory and worth negotiating.
Is a market adjustment ever worth paying?
Only if you need a specific hard-to-find car now and no dealer within reach will sell it at MSRP. Remember you'll likely lose that extra money to depreciation.
Related
Other fees: Dealer add-on package · Dealer prep fee · Destination charge · all dealer fees
Doc fees by state: California · Texas · Florida · New York · Pennsylvania · Illinois · all states
Tools: Out-the-door price calculator · Free quote scan · Compare: TrustBuy vs CarEdge · vs Carfax
Sources
- Consumer Reports, How to Spot and Avoid Unnecessary Car-Buying Fees (updated March 2026)
- FTC, Did you ask for all those add-ons? Protect yourself at the dealership
- FTC, Automobile Industry Pricing Transparency: FAQs
Checked October 2026. General information, not legal advice. Prices are examples from the cited sources and vary by dealer and state.