Rapacious ADMs

[Nayov]

I'm looking to buy a new '21 Versa and wow, my local dealer tacked on $2000 ADM (Additional Dealer Markup) on the addendum sticker. This on a bottom feeder car; all other Nissans there had $3-5000+ ADMs.

I went down the road to a not-so-local dealer and they had the exact same car and price but no ADM, so needless to say I'm dealing with them.

Is this a thing now? Yeah sure, COVID, labor "shortage", chip shortage and so forth...but on a cheap car, a sedan "no one wants", manual transmission "no one wants", they can't possibly be serious.

(Bonus question: Does anyone have a '20 or '21 Versa with manual trans? They were redesigned in '20 and are very impressive, not at all like the previous penalty box that they were.)

 

[CharBaby]

I have seen ADMs for over 40 years so NO, it's not new. It is however, dealer dependent. I've seen ADMs on vehicles that are in great demand(if you don't buy it, someone else will) or on vehicles that offer lower profits for dealers. Or dealers who just don't sell the amount of vehicles as some of their competitors. Or GREED!

I noticed it mostly on Japanese vehicles in the 1980s however, In this pandemic you may see more & more of these ADMs as the dealers just don't have the inventory and still need to pay the bills.

 

[FowVay]

It's your money - spend it wisely. Don't patronize a business that chooses to overcharge you. They can ask any amount of money for anything they have to sell but the consumer will dictate the transaction.

 

[Slick3914]

I saw a Ford Bronco on a dealers lot with a $20,000 ADM.

 

[JoelB]

I have a versa, but not the manual. About 1300 miles on mine and I'm really liking it. Great MPG, lots of compliments on the orange color my car is. Much quieter inside than my previous 2016 versa. It feels bigger inside than the outside lets on, for whatever that's worth.

 

[MParr]

Don’t buy at the markup price. It’s nothing more than a scam to charge more than the car is worth. I’ve seen those official looking markup sheets tacked to the window sticker. Some unsuspecting buyers will pay it. When I come across a dealership doing this, I keep right on moving.

 

[JohnnyG]

There used to be "document fees". Have these ADM's taken their place?

 

[JeffKeryk]

It's called supply vs demand. One of the biggest dealer markups I remember was on a Corvette; I forget the specific model.

 

[WylieCoyote]

The first ADM I ever saw was on a 1990 Plymouth Laser RS, as the dealership I was working for at the time. $1500 "added value". These cars were hot back then, but there was no way I was paying that. I found a lightly used Talon TSi with 10,000 miles on it at a different dealership, and no ADM.

 

[bdcardinal]

This is a weird market. There is such a shortage of new vehicles that dealers are marking up the ones they have because people can and will pay it. I have seen it a bunch, one person balks at the markup and refuses to pay it while there are 2 or 3 people waiting that are willing to pay the markup and more to get a vehicle.

 

[Astro14]

You can call it rapacious if you like, but it's the market.

ADM has been a fixture in the market for a very long time. Certain models that you would laugh at today were getting ADM in the 1970s. The dealers had fewer cars than buyers, so they asked, and got, more for those cars.

It's really simple: if you don't want to pay ADM, then don't buy that car.

Wait until the market changes.

It will.

 

[Astro14]

There used to be "document fees". Have these ADM's taken their place?

No. That was dealer profit/padding on every sale.

This is adding to the cost, and don't worry, they will still tack on the document fee.

 

[RhondaHonda]

When people stop paying ADM they’ll go away. I was lucky to find my 21 Raptor at MSRP which I still hated to pay but that’s the reality lately. I would think there’s more demand for a new model Raptor than a base model Versa. Good on you OP for going to a different dealer.

 

[14Accent]

ADM is the equivalent of "resort fees" at hotels. It's absolutely nothing but a way for the business to advertise one price, yet charge another. Online, car XYZ is listed for $500 below MSRP, where other dealers are charging full sticker. Low and behold, the cheaper dealer adds $1,500 to the price when you show up. ADM.

Hotels are no different. Want to stay on the strip? Sure, they'll sell you a room for $49 a night vs. the off-strip joint. But wait... there's a $40 a night resort fee plus a $10 a night parking fee. All of a sudden, the off-strip room at $79 a night looks like a much better deal, usually with the features of the "resort fee" included.

As others have said... talk with your wallet, and don't fall victim to those greedy (redacted).

 

[CR94]

... Certain models that you would laugh at today were getting ADM in the 1970s. The dealers had fewer cars than buyers, so they asked, and got, more for those cars. ...

Yes, notably including the original Honda Accord, which was in short supply for years. A related tactic is tacking on over-priced trivial options, like pinstripes, etc.
I paid a little extra for my '81 Mazda (listed below), because small efficient cars (the ones that tend to be ridiculed today) were in great demand back then.

 

[jerseyguy123]

They even charge you for floor mats.