BackJULY 20, 2026
What Is a Dealer Market Adjustment?
A market adjustment is an amount added by the dealership above the vehicle's MSRP because of demand, limited supply, or the dealer's pricing strategy.
Market Adjustment in plain English
The adjustment may appear as an additional dealer markup, ADM, market value adjustment, or similar label. It increases the selling price without adding factory equipment.
A market adjustment can also increase taxes, amount financed, and the risk of beginning the loan above the vehicle's recognized value.
Paying above MSRP does not make the vehicle more valuable to the next buyer.
What to consider before paying one
Scarcity can be real, but the complete cost should still be understood.
- 1
Alternative dealers
Another official dealership may price the same vehicle differently.
- 2
Alternative configurations
A different color, trim, or incoming unit may avoid the markup.
- 3
Future value
The vehicle may depreciate from MSRP rather than the marked-up selling price.
- 4
Financing impact
The lender may require additional down payment if the loan-to-value ratio is too high.
A practical example
A $70,000 vehicle with a $10,000 market adjustment sells for $80,000 before tax and fees. The customer finances value that may not be recognized in the future market.
A statewide search may locate another unit at MSRP or with a smaller adjustment.
Common questions
Is a market adjustment legal? A disclosed dealer markup may be permitted, but pricing and advertising rules still apply.
Can it be negotiated? Yes, depending on demand and dealership willingness.
Is it the same as dealer add-ons? No. A market adjustment adds price without a product, while add-ons claim to include goods or services.
Related terms
Continue with MSRP, dealer add-ons and loan-to-value ratio.
Facing a market adjustment?
Belgravia can search official dealerships across California for another vehicle, configuration, or pricing path before you accept the markup.