What the Heck is a Dealer Posted Price?

Walking into a dealership can be intimidating. We here at Nutley Auto are determined to make you feel comfortable throughout your car-buying experience. To help you with this, we have put together a guide for you to reference along the way. This guide will take you from what you need to do in preparation for going to a Dealership to telling you what to look for and do once you are there. Before you reach for your keys, take a look at our advice for your car-buying journey.

 

What you should know: the basics

 

Do your research. If you know the kind of car you will be looking at, you can find all you need to online by searching for vehicle features, options and pricing that fits your needs.

 

At the Dealership you will find a federally required window label identifying the MSRP (Manufacturer Suggested Retail Price). This number is set by each manufacturer and will be the same at all Dealerships, as well as easy to obtain through your research. Your research should also provide you with a clear understanding of available options, in addition to their prices and that of each vehicle.

 

However, some Dealerships will add an additional sticker price label known as an ‘ADM,’ (Added Dealer Markup) and/or Dealer Posted Price. This ADM may simply be a price adjustment added to the MSRP; however, the ADM may include additional options installed by the Dealer. Some ADM examples include:

 

• Vehicle prep
• Destination and delivery fee
• Pin striping
• Dealer prep
• Premium paint color price adjustment
• Extended warranties

 

While a few of these ‘hard product add-on costs’ can be legitimate, others are unnecessary and overpriced. There are Dealers who use ADM in an attempt to legitimize a newly termed “Dealer Posted Price,” which then enables them to advertise any one of these offers to customers:

 

• An inflated Price Discount off the Dealer Posted Price
• An inflated Trade Value built into the Dealer Posted Price
• An inflated Cash Rebate back to the customer subsidized by the Dealer Posted Price.

 

While a few customers may find offers such as these to be acceptable, it is important to understand how they are tabulated and that the agreed upon ‘deal’ is supporting the offer. It is in your best interest to go into the vehicle buying experience prepared so that you can avoid getting taken advantage of. Learning about these specifics will help you feel more confident when it comes to asking the tough questions.

 

What you should do:

 

As discussed above, research is key. Luckily, in today’s day and age all of your research can be done from the comfort of your home or office. Narrow down the type of vehicle you are looking to purchase by researching the features and options that best suit your needs. Once you have a good idea of the Make(s) and Model(s) best suited for you, take a look at online reviews and ratings of the vehicles as well as the Dealers in your area to help you make your final decision. Then, find a Dealership that you are comfortable with. Talk to them about what you are looking for, meet with the sales team and ultimately find someone you can trust to work with.

 

Once you are at the Dealership, do some informed shopping. Check out the Dealer’s inventory and see if it meets your expectations. Arrive equipped with questions about the vehicle you are interested in. And most importantly, don’t be afraid to ask for specifics about prices.

 

If you see the ADM sticker on the car you’re looking at, ask for an itemized breakdown of charges. The research you have already done will help you decide if you can justify what the Dealer is asking you to pay.

 

Go with your gut:

 

At the end of the day, you need to feel confident that you are working with a reputable Dealer and sales team.

 

We hope that this article helps you settle your nerves and prepares you for you car-buying journey. If you were to only take away a few key points from this article, we would want them to be to:

 

• Identify your needs and know what features and pricing options are best suited for you.
• Do your online research for both the vehicle and the Dealership that will satisfy your needs.
• Find a Dealer that has the product knowledge and reputation you can trust.
• Be confident that you have done your homework.

 

The entire staff at Nutley KIA prides themselves on being transparent. If you have questions about pricing, we won’t hesitate to give you a line-by-line cost assessment and explain each fee to you. Contact us today or come in for the best car buying experience.

 

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