You are buying a new car and the dealer shows you an orange sticker next to the MSRP (Manufacturer Suggested Retail Price) sticker.
He says that due to this car’s popularity there is an extra charge, known as the Market Adjustment Fee.
The orange sticker makes it look official so you accept it. Dealers usually pull this scam when people trade-in their old cars to get new ones, since they are focused on what they are getting, instead of the whole deal. The car market adjustment fee could lower your trade-in value by up to $1,000.
How to avoid: since the car is already in stock and you don’t have to put your name on a waiting list, it doesn’t make sense to pay the Market Adjustment Fee, regardless of how popular it is. Just tell the salesman that, or look for another dealership.