What Are Destination Charges And Are They Legitimate?
In the United States, vehicles for sale are advertised with a Manufacturer's Suggested Retail Price (MSRP) - but this isn't the only cost you are liable for when purchasing a new vehicle. The total price you pay at the end of the day includes an additional cost called the destination charge or fee. What is a destination charge for, exactly?
Essentially, this is the price of the transportation fee assigned to the particular make and brand of the vehicle, which is why it is often called freight fees. It is a delivery fee for transporting the vehicle from the factory to the dealership. This is entirely legitimate and is actually mandated by the government. Every new vehicle sold in the US includes such a charge over and above the base price, or MSRP.
How Much Should a Destination Fee Be?
While there are some regulated factors when it comes to calculating a destination charge on a new car, it ultimately comes down to the manufacturer. Destination charges are supposed to cover the costs of getting the car to the dealership, so fuel costs and how many vehicles can be transported in one go, will affect the figure decided on. In this way, large, heavy vehicles, such as a Chevrolet Silverado pickup truck will have a higher destination fee than a smaller car like a Honda Civic Sedan ($1,695 versus $1,095 in 2022, respectively).
Read more - What Is A Destination Charge And Can You Avoid Paying It?
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