Richard Reina, a regular contributor to our pages, normally comes to us via his position at CARiD.com, an aftermarket auto retailer. In his spare time, he writes for his own website, richardscarblog.com. We thank him for his permission to repost a recent story he published there. Richard is also Automoblog’s resident expert on the classic and collector car market.

My Experience With Dealer Markups

I first heard of ADM (Additional Dealer Markups) around 1970, when the then-new Datsun 240Z was launched. The press reported that with demand so great for this Japanese sports car, dealers were asking, and getting, hundreds of dollars over its Monroney-label MSRP of $3,500. (There is some misunderstanding about the legally-required Manufacturer?s Suggested Retail Price. The law says that vehicle manufacturers must establish and publish the MSRP; however, dealers, as independent businesses, are free to ask any price, lower or higher, than the MSRP.)
Since that time, there have been innumerable cases of car dealers applying ADM to high-demand vehicles. My initial exposure to it was in 1986 when I worked for the first Acura dealer in New Jersey. Dealer management thought that the new Legend, with an MSRP of $19,298, could easily command another $3,000, and ?ADM? labels were affixed to the cars. However, as I was working both service and sales for that fledgling dealer, I don?t recall anyone actually paying over sticker for a Legend. 

The Mazda ...