Should there be a law against ADM?

Really wish CA voters would pass a bill banning the dealer installed add-on scam. Such BS.

1 Like

There should be no such bill, IMHO. Private dealerships should be able to ask whatever they want. It is up to the potential customers to vote with their wallets.


Disagree, it’s no different than a grocery store raising prices on water because it’s hard to get water. The price hasn’t changed for them. We’re in an emergency with chip shortages and the dealers are ripping people off. MSRP should be it. The addendums and bullshit second sticker should be illegal.


A new car is vastly different from necessities such as food, water, and lodging. But, by all means, take it up with your state’s attorney general. Every state has price gouging laws. Good luck getting them to agree that (1) we are in an emergency situation and (2) a new car qualifies as a necessity.

As for dealers ripping people off … that’s another stretch. They aren’t holding a gun to anybody’s head.

Like I said, vote with your wallet. We don’t need more stupid laws to protect stupid people from themselves.


Why should there not be a law against ADM?
The value of the used cars had been skyrocketing, thus raising the price of the new cars.
The dealership loses money if they were to give all the money for the used and sell the new cars at MSRP right now. It just doesn’t make sense right now.


I disagree. The market is the market. While you may not want to pay ADM, people have been paying for ADM on cars like G wagons or Ferraris for ages, that’s not price gouging.

If this goes into effect, will the government have to start looking at Apple’s profit margin? People buy things for over and under MSRP all the time. It’s only when people do things criminally like the Bombardier C series that government will take a glance.


Apologies for bringing politics into the discussion but unless there’s a law, dealers will take advantage of consumers. Seeing people being ripped off on lease buyouts is not about people voting with their wallets, it’s about dealers blatantly gouging customers because enough customers are dumb enough to not know their rights. Consumer protection laws exist for a reason and this current car market has illustrated that we need a couple more laws, unfortunately.

I would also say that in certain markets, a car is pretty darn close to a necessity if you also have a job.

BTW I think ADM is fine, I was talking about mandatory installed add-ons.

1 Like

? A dealership loses money by selling at MSRP? Well, THAT’S not true. I’m all for free market, but no need to make stuff up. And, just like customers can vote with their wallet, so can dealers. Don’t like the price of the used cars? Don’t buy them.


They lose potential profit. They’re not ‘losing money’, just potential profit. If every Mercedes dealer sold a G63 at MSRP, they’d lose out on the 100k in ADM they could have charged.

What’s the difference, they’re just bundling a product that they resell at a profit.


You know that the dealership has something called “packs,” right?

What add ons are mandatory? Go to a different dealer if you don’t want the addons or tell them you don’t want them and if they say no, you walk away.

You want the govt involved in your transactions then the price will be higher not lower. 100% of the time. Any market thr govt enters winds up enriching some at the expense of many. Once supply and demand work out the consumer will be in better shape then allowing bureaucrats into the equation.

Look at housing, education, healthcare. Complete disasters.


maybe. but describe what you mean by the term.

Totally agree. Very different to miss out on money vs losing money.

I am not talking about missing out on money. I am talking about the “packs” that they put on. “Pack” is dealer addons that the dealership charges on top of MSRP.

But I am pretty sure that the dealership is going to back to having ample amount of cars in a year or two. So, I wouldn’t worry too much about an ADM

Out of curiousity should the state of FL government get out of the wind insurance business or the Federal gov’t get out of subsidizing flood insurance, crop insurance, etc…I am genuinely curious on your thoughts on this.

What’s the difference?

1 Like

Yes price discovery is distorted bc of fema. Private companies would be able to insure things more accurately.

Housing prices would fall, they would build safer structures. Win win all around. Only fools and millionaires should be building on sand anyway… millionaires don’t need subsidies from tax payers.

Crop insurance I know less about but I’m sure there could be a product design in the private sector to compensate loss.


So, yes, that is what I knew packs to mean. I’m not following your train of thought, however. You said a dealer is losing money selling at MSRP. I disagreed. Then you asked me if I know what packs are.

I would rather have a $5k package of “accessories” than a straight $5k ADM. But it isn’t like this is a new practice. Tons of dealers would discount the car online and then make up for it with mandatory add-ons. While I don’t like this practice, it makes getting a LH worthy deal even harder if add-ons are abolished since overall margins might shrink for volume brands. Essentially, there is not another person paying for your deal.

1 Like

To be honest, I am not exactly sure what he is talking about either. A pack means something entirely different in internal dealer lingo than dealer installed accessories. I think he is saying pack equals ADM/market adjustment rather than a package of pre-installed accessories.