Car Questions

Clear all

Market adjustment fees on new cars


Topic starter


I thought you might be interested in what happened to a new car buyer in Edmonton, Alberta, Canada. There was no organization, legal or otherwise, that was able to help him so he walked away from the deal and someone else bought his car almost immediately. See the following news item:

Do you see this happening in the United States?


6 Answers

Market adjustment is happening like crazy these days especially given car shortage issues. It's either market adjustment or a bunch of nonsense dealership add ons.

Posted by: @kaizen

The only market adjustment I am interested in is if it is below MSRP. 

Below msrp is not going to happen on the good cars at least for now. MSRP is the new norm for cars like Honda and Toyota for example and it's considered a good deal for someone who needs and wants a new car in this market. At least you get a new car at msrp instead of an overpriced used car.

Totally. It ain’t happening.



Smart of the fellow to walk away. 

I had a friend that wanted a new car so bad, they didn’t care about the price or the markup. 

Me on the otherhand, I don’t like getting swindled. The only market adjustment I am interested in is if it is below MSRP. 


Seeing as how in that instance it was a Kia, probably a blessing in disguise that stealership shenanigans made him walk away from the deal.


To play devil's advocate, the thing is that it's all about supply versus demand. Economics 101. In times when dealers are stuck with unsold cars they can't move (like during the Ford vs. Chevy sales war when unordered cars were dumped on dealers and piling up) you can wheel and deal and get a good price. On the other hand when supplies of cars are tight and there are more buyers than vehicles (like just after the war), dealers can demand inflated prices with the attitude that if you don't want to pay, hit the road Jack - the next guy right behind you will. Today we have a situation similar to the latter.

In the instant case the problem is not so much the "market adjustment" fee itself, but the fact that the dealer reneged on a price that was already negotiated and signed off on. They added the "market adjustment" to the price unexpectedly after the deal was made. It's those kind of shenanigans that earn them the moniker "stealerships".


I can't speak to Canadian consumer law but in the states the dealers only obligation is to refund your deposit if they can't deliver the car. The contracts are written in such a way that you are not guaranteed a car at the price on the contract. There has been some attempts to regulate car dealers but they always get struck down by the courts.  The car dealer lobby has deep pockets and are very powerful. I would venture to say they probably had a buyer before you even showed up who was willing to pay the inflated amount.  I am surprise Kia said it was OK. Kia was  a up and coming brand but I am hearing more of these horror stories and sales are dropping as their reputation deteriorates.

You might watch some of the "Kevin Hunter / The homework Guy" videos on buying cars and negotiating.

Sorry for your disappointment.

Opposing viewpoints are offered an opportunity for rebuttal.