How to price dealer add-ons (and show them clearly)

Short version: price each dealer add-on as its own line item, set the retail price once in a central product list, use that same price on every vehicle and at every rooftop, and make sure the shopper can see which items are optional and what each one costs. Federal regulators don't set add-on prices, but they do police how prices are presented. Under Section 5 of the FTC Act, presenting an optional product as required, or leaving a required one out of the advertised price, can be treated as deceptive.

Common add-on categories

Most dealer add-ons fall into a few groups. Grouping them helps you price consistently and describe them the same way every time.

Physical products installed before sale are the ones that usually appear on the addendum. Service contracts and GAP are generally sold in the finance office. They're also the products that have drawn enforcement attention when buyers were charged without agreeing to them, as in the FTC and Maryland Attorney General's case against Lindsay Auto Group, which involved service plans, tire and rim protection, and GAP that consumers "did not want or agree to buy."

How dealers set retail prices

There's no federal formula for add-on pricing. Dealerships typically start from three inputs:

1. Product and installation cost. What the product costs, plus labor if your team or an installer puts it on.
2. Market price. What competing stores in your area charge for the same product.
3. Value to the buyer. What the product actually does for the vehicle and the owner.

The third input matters more than it used to. California's CARS Act (SB 766), which took effect October 1, 2026, prohibits dealers from charging for add-ons that won't benefit the consumer, according to the bill author's announcement. An add-on that can't do anything for a specific vehicle shouldn't be on that vehicle's sticker at any price.

Whatever method you use, write the result down as a single retail price per product, not a range that salespeople fill in.

Keep prices consistent across rooftops

Dealer groups run into pricing drift fast. One store updates its tint price, another doesn't, and a third has a manager who types in a different number on certain vehicles. The result is the same product at three prices, which is hard to explain to a shopper and harder to explain to a regulator.

Practical ways to keep it consistent:

• One product list per store, maintained in one place. Every sticker pulls from it instead of being typed.
• Limit who can change prices. Separate the people who set prices from the people who print stickers.
• Use the same product names and descriptions everywhere. "Paint protection" shouldn't become "exterior shield package" at the next rooftop.
• Review the list on a schedule. A quarterly look at every store's products and prices catches drift early.
• Reprint when a price changes. If a price on the lot no longer matches your list, replace the sticker.

For the cost side of getting this wrong, see what manual addendums really cost a dealership.

Show prices transparently

The FTC's September 2026 price transparency FAQs for the auto industry are the clearest current statement of what federal regulators expect. A few points apply directly to add-on pricing:

• The advertised price must include mandatory charges. The FAQs say the advertised price must include any mandatory fee, and that dealers may exclude only government-required charges.
• Optional must look optional. Dealers "cannot suggest an add-on is required when it is in fact optional," can't imply an installed option can't be removed and must be paid for, and can't misstate an option's cost.
• No charges without agreement. The FAQs say dealers can't charge for options the consumer didn't agree to.
• The actual price leads. On web pages that show a price, the actual price must be the most prominent amount.

On the addendum itself, that translates to a simple layout: each product on its own line with its own price, the vehicle's price before add-ons shown separately, and a visible total. If you bundle products into a package, list what's in the package and what it costs. A single "protection package" line with one number gives the shopper nothing to evaluate.

If a product is already installed and the dealership won't sell the car without charging for it, treat it as part of the price you advertise. If it's optional, say so, and don't charge for it unless the buyer agrees.

Avoid mandatory and junk-fee framing

The legal backdrop is broad rather than add-on specific. Section 5 of the FTC Act, codified at 15 U.S.C. § 45, declares "unfair or deceptive acts or practices in or affecting commerce" unlawful. The FTC's CARS Rule, which would have added auto-specific rules, was formally withdrawn in February 2026 after a federal appeals court vacated it. The FTC continues to bring cases under Section 5, often together with state attorneys general enforcing their own consumer protection laws:

• March 2026: The FTC warned 97 dealership groups that advertised prices must include all mandatory fees. Among the illegal practices it listed: "requiring consumers to buy additional items not reflected in the advertised price."
• December 2024: The FTC and the Illinois Attorney General sued Leader Automotive Group, alleging salespeople told buyers that add-ons were pre-installed and mandatory. The proposed settlement required express, informed consent before charging for add-ons.
• October 2026: The FTC's settlement with Greenway Auto Group bars misrepresenting whether charges, fees, products, or services are optional or required.

State rules vary. California's CARS Act requires dealers to be transparent about optional add-ons, and other states enforce their own unfair and deceptive practices laws. Check the rules in each state where you have a rooftop. For more on what changed this year, read dealer addendum disclosures in 2026.

FAQ

Do add-on prices have to be the same at every store?

No federal rule says so. But the same product at different prices across your group, with no clear reason, invites questions. A single product list per store, managed by a small number of admins, keeps prices deliberate.

Can I advertise a vehicle without its pre-installed add-ons?

The FTC's FAQs say the advertised price must be one any consumer can actually pay, excluding only government-required charges. If buyers can't get the car without paying for an installed add-on, an advertised price that leaves it out is the kind of practice the March 2026 warning letters described. Talk to counsel about how this applies to your ads.

Should I bundle add-ons into a package?

You can, but itemize what's in it and show the package price. The FTC's guidance focuses on whether shoppers can tell what's optional and what it costs, and bundles with a single number make that harder.

Where do add-on prices go on the sticker?

Below the vehicle identification, one product per line, with MSRP or the base price shown separately and a total underneath. See what to include on a dealer addendum and, for used inventory, addendum stickers for used cars.

How QP Addendums helps

QP Addendums keeps add-on pricing in one place. Admins set each store's products and prices, and only admins can change them. Group Admin, Store Admin, and Print User roles separate who sets prices from who prints. Every sticker lists each product on its own line with its price, shows MSRP separately, and carries a fixed disclosure and exclusions line that nobody edits at print time. Every print is saved, including reprints, so you can see what was on a vehicle and when. Plans start at $99/month with unlimited prints. See how it works, compare plans, or read about the controls on our compliance page. It supports a consistent process. It doesn't decide your prices or guarantee compliance. Before you rely on any pricing approach, run it by your counsel, and work through our dealer addendum compliance checklist.