There are several ways a car dealer and its salespeople will use the addendum sticker to their advantage. The main goal of the addendum sticker is to add additional profit on top of the manufacturer’s suggested retail price (MSRP). These products are usually very inexpensive to the dealer and have been excessively marked up to the customer. This is how the dealer mindset works when it comes to an addendum sticker.
The outrageous mark-up on dealer-added options – A spoiler added to a car will cost the dealer around $250 in parts and labor. The dealer will then list the spoiler on the addendum sticker for $800-$1,250 or more.
High dollar pin striping – Dealers may have their vehicles pinstriped at a cost of about $15 per car and then charge up to $175 or more to the customer.
Conversion packages – chrome or alloy wheels and tires, truck lift kits, sunroofs, and gold packages carry very high-profit margins for a car dealership.
Dealer packages – Loaner car for life, oil changes, maintenance packages, etc. The list goes on in this area, car dealers are excellent in finding new and improved ways to overcharge you. An example would be a $2,500.00 charge for a loaner car anytime your vehicle is in the shop combined with oil changes for the life of you owning the car.
Make sure if there’s a dealer added option listed on the addendum sticker it’s actually on the vehicle. There are many times an addendum sticker will get put on the car before the actual accessory has been installed on the vehicle. The dealer will have no problem “accidentally” charging you for something that’s not yet installed on the vehicle.