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Author Topic: What makes up a destination charge? Back to Topics
mastermariner
Champion Author
Texas

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Message Posted: Sep 30, 2013 9:37:52 AM

Buy a new car, and you'll likely shell out $800 or more for the destination charge. Automakers call it all sorts of things: Honda says it's for "destination and handling," while Subaru dubs it "destination and delivery." Mercedes-Benz simply calls it a "transportation" fee, while Buick says it's a "destination freight charge." Toyota leaves nothing out with its verbose "delivery, processing and handling fee."

Whatever the name, destination charges are on the rise. The customary fee for the 10 bestselling cars in 2003 averaged $643. By 2012, the price jumped to $879 a 3.3% annual increase, on average, that puts destination charges on track to crest $1,000 per car by 2017. If that seems expensive, those track about even with average new-car MSRPs over the same period. The average new car
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REPLIES (newest first) Post a Reply
TruthMatters
Champion Author New Jersey

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Message Posted: Oct 1, 2013 9:20:01 AM

S & H fees
blupupher
Champion Author Houston

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Message Posted: Oct 1, 2013 8:19:54 AM

just one of many legal scams car dealers do.
bston
Champion Author Oklahoma City

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Message Posted: Oct 1, 2013 1:08:02 AM

It would save all those $$$ if you could drive to the destination & drive it home yourself.
tillandsia
Veteran Author Gainesville

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Message Posted: Sep 30, 2013 7:40:10 PM

Thanks for the explanation. I avoid all these dealer fees and automatic depreciation by buying used cars!
Metrolizer
Champion Author Fort Worth

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Message Posted: Sep 30, 2013 6:49:01 PM

Is inflation running at 1.2% per year?
crep1291
Champion Author Ottawa

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Message Posted: Sep 30, 2013 5:03:17 PM

These should be included in the total purchase price. When I buy a gallon of gas, I don't get charged extra for delivery and "handling". I just pay what the price says.
markcayer
All-Star Author Ottawa

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Message Posted: Sep 30, 2013 1:02:48 PM

just another cash grab.
dodsworth
Champion Author Salem

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Message Posted: Sep 30, 2013 1:01:34 PM

Non-specific labels are used to slip through extra "small" charges hoping consumers won't take the time to figure it out and so will pay without question. Hospitals, banks, and car dealerships quickly come to mind.
quantum2013
All-Star Author Colorado Springs

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Message Posted: Sep 30, 2013 12:38:09 PM

Never buy new and you won't have to worry about dest. charge.
SRcyclist
Champion Author San Diego

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Message Posted: Sep 30, 2013 12:36:27 PM

Analogous to airline tickets, it's a way to advertise a lower purchase price.
mkohly
All-Star Author Chicago

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Message Posted: Sep 30, 2013 12:17:56 PM

yet another fee from Dealerships. Explains why Tesla doesn't want them.
tnfran
Champion Author Arizona

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Message Posted: Sep 30, 2013 12:10:39 PM

More ways to skin a cat and not show.
gaswatchON
All-Star Author Ontario

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Message Posted: Sep 30, 2013 12:06:38 PM

Another CON job - used to be an average price per car of all the cars no matter where they were going. guess they decided they missing out on another consumer con job
rjojo40
Champion Author Las Vegas

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Message Posted: Sep 30, 2013 11:55:03 AM

so if a car built in texas sells in texas is the destination charge lower?
mitt4prez
Champion Author Tacoma

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Message Posted: Sep 30, 2013 11:30:04 AM

Another way to raise prices while keeping the sticker nominally low.
RitaVespa
Champion Author Oregon

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Message Posted: Sep 30, 2013 11:28:28 AM

Always wondered
gbs1
Champion Author Minnesota

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Message Posted: Sep 30, 2013 11:13:23 AM

The cost of delivering the vehicle to the dealer with a profit margin built in.
GingoutMD
Champion Author Maryland

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Message Posted: Sep 30, 2013 10:55:05 AM

The auto dealerships are learning from the airline industry by increasing the cost of "fees" and will earn billions from their collection.
dr047
Champion Author Cleveland

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Message Posted: Sep 30, 2013 10:47:45 AM


"What makes up a destination charge?"

= Greed
BumpinButch
Champion Author Texas

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Message Posted: Sep 30, 2013 10:47:30 AM

PROFIT MARGIN TACTIC
velichita
Champion Author New Jersey

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Message Posted: Sep 30, 2013 10:41:31 AM

That's mean dealars want more your money.
Dr Gas
Champion Author Twin Cities

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Message Posted: Sep 30, 2013 10:41:19 AM

Really, its a sneaky way to get more profit! Period!

Of course it takes more diesel for the semi to get that car to the lot so that you can buy it!

Easy way to avoid it - buy a 2 year old car instead!
daytonabiker
Champion Author Florida

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Message Posted: Sep 30, 2013 10:38:39 AM

destination charge is dealers way have of padding his bottom line
highdesertman
Champion Author Albuquerque

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Message Posted: Sep 30, 2013 10:38:21 AM

The fact that these fees are virtually the same for an imported car as they are for a domestic car purchased from a dealer in the same city in which it was built shows how unrealistic they are. Very similar to the add-on fees that airlines charge regardless of length of trip. Just another way to allow companies to advertise one price and charge you more.
amoshins
Champion Author Trenton

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Message Posted: Sep 30, 2013 10:35:26 AM

It's ironic that the photo shows Corvettes being delivered out of the Bowling Green assembly plant. My understanding is that if a buyer accepts the Museum Delivery option, which is right across the street from the Assembly plant, they still need to pay the destination fee.
twinfanMN
Champion Author Minnesota

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Message Posted: Sep 30, 2013 10:24:50 AM

Precisely what I was wondering JoeKR. If I can save 800-900 dollars on a destination charge give me the address of the factory
Wally3023
Champion Author Pennsylvania

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Message Posted: Sep 30, 2013 10:17:40 AM

Good to know. Very informative.
schvanda63
Champion Author Lansing

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Message Posted: Sep 30, 2013 10:14:13 AM

Definitely NOT to defend the price, but every time you see a car on a car hauler or an autorack railroad car, someone is paying the shipping costs. Trucks and trains do not run for free, but $800 a car seems excessive.
JoeKR
Champion Author New Jersey

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Message Posted: Sep 30, 2013 10:03:27 AM

Does that mean you can save those charges if you pick up the car at the factory?
Skunk63
Champion Author Phoenix

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Message Posted: Sep 30, 2013 10:02:58 AM

It's all part of the price of the car which is negotiable.
radbadtz
Champion Author Halifax

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Message Posted: Sep 30, 2013 10:00:19 AM

yup
bklynse
Champion Author Los Angeles

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Message Posted: Sep 30, 2013 10:00:03 AM

Just another way to add more money to the already over-inflated price of automobiles...
Fleabite44
Champion Author Maryland

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Message Posted: Sep 30, 2013 9:46:52 AM

Just part of the price to negotiate.
irish15pilot
Champion Author Charleston

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Message Posted: Sep 30, 2013 9:44:28 AM

Justifying a price bringing the product to the customer
eschroth442
Champion Author Cleveland

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Message Posted: Sep 30, 2013 9:43:45 AM

Agree with fedupMN
humblepie
Champion Author Toledo

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Message Posted: Sep 30, 2013 9:43:31 AM

simple obamanomics, they are learning fast
fedupMN
Champion Author Twin Cities

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Message Posted: Sep 30, 2013 9:41:22 AM

Just a made up number to get more money from the consumer.
fora_7
Champion Author Montreal

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Message Posted: Sep 30, 2013 9:40:00 AM

interesting, but link with gas???
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