ADM - Additional Dealer Markup

[RickMachE]

The whole premise of this thread is incorrect, as it's been shown that dealerships are making record profits (see post #5). Since the article doesn't mention that this is due to them charging ADM, the whole premise of this thread is a fallacy.

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[yngwenli]

I didn’t say I had a problem with people making money off me, I said I had a problem with salesmen and dealerships making extra money off me. Holding back points on financing and ADM are things that I am definitely not going to deal with. People should be paid for their work, but car salesmen and dealerships have a long history of unethical behavior - there’s a difference between lying to a customer and fairly negotiating a better profit. The latter is fine, the former is not.

The other problem with the comparisons you listed is that the vast majority of people in the US NEED a car and will buy several over their lifetimes. You don’t NEED high-end fashion, jewelry, and fancy furniture. If someone gets hosed on their $5,000 purse, I have zero sympathy. When a car dealer screws a single parent on their $5,000 car by lying about the actual APR so they can hold back points and get a bigger commission, that doesn’t sit right with me. If you work in car sales, you know it’s a cutthroat business, even amongst the salespeople. There are minimal consequences for bad behavior, if any. If your financial advisor, realtor, etc., acts unethically, there are potentially serious consequences as they have professional licenses with a code of ethics. So no, I don’t want car dealerships and salesmen making any extra money off me. I’ll take my business elsewhere or simply not purchase a particular vehicle at all.

There's a reason for this:
https://www.forbes.com/sites/niallm...sted-professions-infographic/?sh=626f8d247e94

"Car salespeople are also one of the least trusted professions in America today with only 8% of people viewing them as honest and ethical."



https://www.insidermonkey.com/blog/...professions-in-the-world-608564/?singlepage=1

"2. Car Salespeople
% of people who ranked them low on honesty and ethics: 46%"


You can search for any survey and car salespeople are almost always near the bottom. There's a reason why there is strong distrust here and in nearly every single car forum before and even now. Why I have every single time buying a car, prepare mentally literally as if I'm going into a mental war with a dealership since yeah, you're almost guaranteed to get ripped off if you aren't prepared and do your research...Every single time I buy/shop for a car, it's the same mental war preparation.

 

[Jbkimmel]

My biggest problem with the whole ADM thing is the redundancy. I mean, it's a dealer markup, ok? Of course it's additional. Have you ever heard of a subtractional dealer markup? C'mon, man!

Thank you for letting me finally get that off my chest. I feel much better now,

Unfortunately, DM was already taken by Direct Message, as well as by Depeche Mode for some of us Gen Xers. But your point is well taken! ?

 

[AKgrampy]

My biggest problem with the whole ADM thing is the redundancy. I mean, it's a dealer markup, ok? Of course it's additional. Have you ever heard of a subtractional dealer markup? C'mon, man!

Thank you for letting me finally get that off my chest. I feel much better now,

Well if you think about it the MSRP has a built in DM so additional sales price is an ADM. (this comment reminds me of my days in the military)

 

[Ghost Ryder]

I think the whole issue is that different people are paying different prices for the same item. That just rubs people the same way. Most people would be happy if everyone pay more, but the same amount, then if someone paid less then them. Its their inner competitor. that's why CARMAX is so popular. People to want to feel like they are getting ripped off. But if everyone is getting ripped off the same amount, then its ok.

 

[Mach1E]

I think the whole issue is that different people are paying different prices for the same item. That just rubs people the same way. Most people would be happy if everyone pay more, but the same amount, then if someone paid less then them. Its their inner competitor. that's why CARMAX is so popular. People to want to feel like they are getting ripped off. But if everyone is getting ripped off the same amount, then its ok.

Could be a regional or a generational difference.

But around here, people freaking love to haggle. Well they may not enjoy the haggle experience, but they all do it.

If they don’t haggle on the car price, they haggle on the trade in, haggle on the financing, haggle on the dealer installed options, haggle on warranty etc.

You don’t HAVE to haggle though. Just pay the asking price. Then you too can get “ripped off by the same amount.”

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