Dealer Markup.
In plain English
A dealer markup is money a dealership charges on top of the MSRP, usually listed on a second sticker as a market adjustment, addendum, or additional dealer markup (ADM). Dealers use it when a model is in short supply and buyers are competing for it. The markup is pure profit for the dealer and is fully negotiable or avoidable by walking to another store. It is different from required charges like tax or the destination fee, because nothing about a markup is set by the manufacturer.
01Why it matters
A markup can add thousands to a car you could buy at sticker elsewhere, so spotting it lets you negotiate it off or take your business to a dealer who does not charge one.
02The math, step by step
A popular SUV has a $40,000 MSRP, but a second sticker shows a $5,000 market adjustment, bringing the asking price to $45,000. A nearby dealer with more inventory sells the same SUV at MSRP, so shopping around saves the full $5,000.
03What this is NOT
A markup is not a required fee. The destination charge is a fixed manufacturer cost, while a markup is optional dealer profit you can negotiate away or avoid.
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