Addendum Sticker

Automotive Training Network -

An Addendum Sticker, also known as a dealer add-on sticker, is an additional label affixed to a vehicle’s window, typically placed alongside the Manufacturer’s Suggested Retail Price (MSRP) sticker.

While the MSRP provides standardized information about the vehicle’s base price and factory-installed options, the addendum sticker details dealer-installed accessories, services, or market adjustments that can increase the vehicle’s final selling price.​

Purpose of Addendum Stickers

Addendum stickers serve several functions within car dealerships:​

  • Transparency: They inform potential buyers about additional features or services added by the dealer, such as custom wheels, window tinting, or extended warranties.
  • Profit Margins: Dealers use these stickers to list markups or “market adjustments,” especially on high-demand models, to increase profit margins. 
  • Marketing: By highlighting added features, dealerships can differentiate their inventory and justify higher prices.

Common Items Listed on Addendum Stickers

Addendum stickers can vary significantly in content depending on the dealership, geographic market, or customer segment. However, several categories tend to appear consistently across dealerships:

1. Dealer-Installed Accessories 

These include aftermarket or OEM parts and features installed by the dealership after the vehicle arrives from the factory. Examples include:

  • All-weather floor mats
  • Roof racks or crossbars
  • Custom alloy wheels or upgraded rims
  • Trunk organizers or cargo nets
  • Window tinting
  • Rear-seat entertainment systems

These accessories are typically marked up and added to the vehicle’s cost on the addendum sticker.

2. Protection Packages 

These packages aim to enhance the durability or appearance of the vehicle and are often marketed as long-term value additions. Common services include: 

  • Paint sealant: Applied to preserve the finish and protect from environmental elements.
  • Fabric protection: Protects interior upholstery from stains and wear.
  • Undercoating or rustproofing: It adds a protective layer underneath the vehicle to resist corrosion, especially in colder climates or areas where road salt is used.
  • Nitrogen-filled tires: Dealers often claim nitrogen lasts longer and improves fuel economy.

Though marketed as performance-enhancing, many of these services have contested value in the industry and may not be necessary for every buyer. 

3. Security Features

In response to consumer demand and insurance incentives, some dealerships include security enhancements such as:

  • VIN (Vehicle Identification Number) etching: The VIN is etched into the vehicle’s windows to deter theft.
  • Aftermarket alarm systems
  • GPS-based vehicle tracking systems

These features often carry a markup, even though similar options may be available from third-party providers at lower prices.

4. Market Adjustments

In high-demand markets or during supply shortages, such as those seen during global supply chain disruptions, dealerships may apply a market adjustment fee to capitalize on scarcity. These adjustments are purely based on supply and demand and can range from a few hundred to several thousand dollars above the MSRP. 

For example, a popular truck model with limited availability may show a market adjustment of $5,000 or more. While controversial, market adjustments are entirely legal, as the dealer is not bound by the MSRP when setting their final asking price.

Implications for Consumers

Understanding the addendum sticker is critical for consumers to make informed decisions. Some key considerations include:

  • Negotiability: The items listed on an addendum sticker are almost always negotiable. Unlike the MSRP, which is standardized, dealer-added items are set arbitrarily, and the buyer can request their removal or price reduction.
  • Transparency: Buyers should always request a full explanation of each item listed on the sticker. Some fees, such as documentation or administrative charges, are standard, while others, like appearance packages, are optional.
  • Value Evaluation: Not all add-on items provide equal value. For instance, aftermarket wheel upgrades may enhance aesthetics but do not necessarily improve performance or resale value. Similarly, protection packages may offer minimal benefits if the buyer already has similar coverage from insurance or extended warranties.
  • Financing Impact: Since addendum sticker items are often rolled into the vehicle loan, buyers may end up paying interest on non-essential services. A $1,500 markup for accessories could result in significantly more paid over time if financed.

Dealership Perspective

From the dealership’s viewpoint, addendum stickers offer a legitimate way to boost revenue and personalize offerings for different markets. As vehicle margins tighten, especially for popular models with low factory markup, addendum stickers provide room for profit without altering manufacturer pricing structures. 

Well-crafted addendum stickers can also serve as sales tools, enabling dealers to demonstrate the added value they provide and differentiate their offerings from competitors. Transparency and ethical pricing, however, are essential to maintaining trust and long-term customer relationships. 

While addendum stickers are legal, dealerships must ensure they are not misleading. Misrepresenting an item as factory-installed or failing to disclose that addendum items are optional can lead to consumer complaints and legal scrutiny.

An add-on sticker represents the dealership’s custom additions and pricing decisions that go beyond the vehicle’s factory specifications. For both consumers and industry professionals, understanding its contents and implications is essential in evaluating the actual cost and value of a car.

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