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How AI Detects Dealer Markups
How AI detects dealer markups in the US—comparing asking price to market, ADM, add-ons, and bloated fees.
AutoPremo Team
January 31, 2026
2 min read
AI in the U.S. detects dealer markups by comparing asking price to market (comps, median), flagging market adjustments (ADM), mandatory add-ons, and bloated fees—so you see when you're overpaying. Here's how AI detects dealer markups and how to use it.
TL;DR AI detects markups by (1) comparing asking price to median comps—above market = markup; (2) flagging ADM and add-ons when data is available; (3) comparing fees to norms. Use autopremo.com price checker and OTD calculator to see market and OTD so you spot markups.How AI Detects Dealer Markups
- Price above market — AI pulls comps (same year, make, model, trim, similar mileage) and calculates median. If asking price is above median (e.g., >10%), that's a markup—unless condition or warranty justifies it. Use autopremo.com price checker.
- ADM (market adjustment) — on new cars, AI can flag when asking price is above MSRP with no rare justification—that's ADM. Use autopremo.com OTD calculator to compare to MSRP and incentives.
- Add-ons and fees — when you enter OTD (selling price + fees), AI can compare fees to state norms (e.g., doc fee $500+ when norm is $200)—bloated fees = markup. Use autopremo.com to see OTD and spot fee markups.
- Mandatory add-ons — if the dealer insists on add-ons at inflated prices, that's a markup. AI tools reinforce: refuse mandatory add-ons or demand price reduced so OTD stays the same. Use autopremo.com.
What to Do
- Run price check — compare asking price to market (comps, median). Use autopremo.com price checker. If above market, negotiate or walk.
- Get OTD breakdown — selling price, incentives, fees, total. Use autopremo.com OTD calculator. If fees are bloated or add-ons are mandatory, push back or walk.
- Refuse mandatory add-ons — or demand price reduced so OTD stays the same. Use autopremo.com.
Bottom Line
AI detects dealer markups by comparing price to market, flagging ADM and add-ons, and comparing fees to norms. Use autopremo.com to see market and OTD so you spot markups and don't overpay.