Can Car Dealers Charge More Than the MSRP or Advertised Price?
How One Buyer Got Hit with a Dealer Over MSRP—And What You Can Do If It Happens to You
When Rachel walked into the dealership to buy her dream SUV, she thought she’d done everything right. She researched the MSRP, printed out the advertised price online, and even called ahead to confirm the vehicle was available.
But when she sat down to sign the paperwork, she noticed something odd.
The dealer over MSRP by nearly $7,000.
When she asked about it, the salesperson mumbled something about “market adjustments.”
What Rachel didn’t realize at the time was that she was walking into a classic car markup scam—and she’s not alone.
Dealers overcharging on new cars has become so common, it’s sparking investigations, class-action lawsuits, and consumer outrage across the country.
Let’s break down what this means for you, how to spot it, and—most importantly—what legal options you have if it happens to you.
Understanding the Markup: Can Dealers Legally Go Over MSRP?
MSRP stands for Manufacturer’s Suggested Retail Price. It’s just that—a suggestion.
And while it might feel like price gouging, dealers can charge over MSRP.
However, there’s a difference between a clear markup and a deceptive or unfair sales practice.
🚨 California-Specific Legal Note:
In California, car dealers must clearly disclose the final sale price and all added fees or markups before you sign anything. Under the California Vehicle Code Section 11713, it’s illegal for a dealership to misrepresent the total sale price of a vehicle, advertise one price and then charge another, or add unauthorized fees without your written consent.
If you agreed to a lower advertised price, and the final paperwork included a higher price without clear explanation or approval, you may have been the victim of deceptive pricing—and you have the right to take legal action.
When Dealer Over MSRP Becomes a Legal Problem
The “Advertised Price” Trap
Say you find a car online for $29,995. You walk into the dealership, test drive it, and love it. But when the deal is drawn up, suddenly the price is $34,995.
They might blame “market adjustments,” added accessories, or paperwork fees—but if none of that was disclosed before the sale, it may be considered bait-and-switch pricing—and that’s a serious issue.
That’s where the term “car markup scam” comes in.
Common Signs of Overcharging on a New Car
- The final contract price is higher than the advertised or discussed price
- You’re told the higher price is non-negotiable due to “inventory shortage”
- “Add-ons” like nitrogen in tires or VIN etching are added without your consent
- You’re pressured to buy at a higher price by saying “someone else is interested”
- You only find out about the markup after you’ve signed the contract
What You Can Do If You’ve Been Overcharged
If you believe a dealer overcharged you on a new car, you’re not stuck.
There are steps we can take to review your deal, identify potential fraud or deception, and fight for a refund, replacement, or cancellation.
Our legal team investigates contracts for:
- Pricing discrepancies between what was advertised and what you paid
- Undisclosed fees or unwanted add-ons
- Failure to honor promotional pricing
- Signs of a car markup scam
And if we find violations? We hold the dealership accountable.
Real Client Story: How We Helped One Buyer Recover Thousands
One client came to us after buying a truck advertised for $42,000.
After a whirlwind of paperwork and fast-talking sales tactics, he realized he’d paid $51,000—with no explanation for the $9,000 difference.
Our team uncovered that the dealer never disclosed the so-called “market adjustment” and added phantom accessories he never requested.
We got him $8,500 back—plus coverage for his legal fees.
If you’ve had a similar experience, you’re not alone—and we’re here to help.
How We Help Victims of Dealer Over MSRP Tactics
When you work with us, we focus on:
- Fast reviews of your purchase agreement
- Identifying fraudulent pricing tactics
- Filing claims under state consumer protection laws
- Demanding compensation or rescission of the deal
This isn’t just about getting your money back.
It’s about sending a message: You won’t be taken advantage of.
Should You Sue a Dealership for Marking Up Over MSRP?
You might be asking—Is it worth it?
Here’s the truth:
If you were misled, lied to, or pressured into paying more than the advertised price, you may have a legal claim—and you may be entitled to compensation.
But time matters. Many state laws have short deadlines for consumer fraud cases.
So if something feels off, don’t wait. Let us review your documents now.
Don’t Let the Car Markup Scam Catch You Off Guard
We get it.
You walk into a dealership excited, prepared, and ready to drive away with your dream car—only to find out you were overcharged, misled, or deceived.
But that doesn’t have to be the end of your story.
Let us help you write the next chapter—the one where you get justice.
Call Now for a Free Case Review
Our team has helped countless clients recover money, cancel unfair contracts, and fight back against predatory pricing.
It starts with a conversation.
📞 Call us now or
📅 Schedule your free case review online
No obligation. Just answers.