i always think why we buyer should pay the destination charge and it is like $500~$600 and some imports are more expensive..i always see the new vehicles trucks carry 10 new cars at once and that means the truck company earns $5000~$6000 each time they transport the vehicles to dealerships..dealer should pay half of it since they are doing business....it is they need cars on their showrooms or dealerships..and is destinations charges really that much? how do u think....

 

Would you rather they hide it in the price of the car? Instead of getting $2000 off sticker and paying destination, maybe next time you'll only get $1500 off. They're going to get in one way or another.

 

I guess I don't understand why they itemize it. It's part of the cost to get the car, like the advertising fee . Why doesn't the dealer also add their electricity, water, payroll, etc.

 

They might be making a little bit of money off of it.. But not much.. It is expensive to have a 18 wheeler deliver a bunch of cars. And they have to be insured as well.. Probably includes the labor for getting all that protective trim off the car when it arrives at the dealership as well.

It's a real expense to the dealer, so If you negotiate yourself not to pay it, they will just stick it elsewhere.. I.e. in the price or deduct if from your tradein. etc. etc..

As to why they do it.. I think most all car companies do it. If you didn't do it, and added it in to the price of your car, suddenly it would look like your car cost more..

It is sorta stupid, but sometimes you can also get cars picked up at the assembly plant. I know with Volvo you can anyways.
But it's probably alot to do with tradition as well.. Like the 9/10'th of a cent extra charge for gas..

$1.15 and 9/10ths ,, paleeease.. Just call it what it is $1.16!

 

does dealer holdback have a factor in this?

Corporate gives dealers a percentage of "at cost" to cover miscellaneous dealership expenses in maintaining inventory. And the longer the inventory stays on the lot, the longer the dealership suffers. So they want to move it off the lot asap to cash in on holdback reward; thus they make the most out of it on preorders since these orders technically never stay on the lot.

 

The destination charge was the first thing I crossed off when negotiating the price of my car. So the dealer can think of it as either he didn't get the 480 easy profit or he sold the car for $480 less.

Either way, it boils down to if you think the bottom line is fair.