Destination Fee

[Broncodave]

We all see it right there in the build and price summary. Basically just a profit center for Ford and other automakers.

Latest Consumer Reports has a good article about it.

https://www.consumerreports.org/buying-a-car/the-truth-about-destination-fees/

"Car buyers often pay extra for options like leather seats and high-end sound systems, but delivery is no more optional than a windshield. And almost no other business expects consumers to pay separately to send goods to stores."

“The automaker should be responsible for getting their product to the retailer, just like eggs to a grocery store or electronics to a store such as Best Buy,” says Jack Gillis, executive director of the Consumer Federation of America.

"Destination fees rose an average of 90 percent on Chrysler, Dodge, and Jeep vehicles; 74 percent on Ram trucks since 2011; and 114 percent on Fiats since 2012. "

"Other models with sizable destination fees include the much anticipated new Ford Bronco and the smaller Ford Bronco Sport, for which the fee is $1,495, and the 2021 Ford F-150 and Ram 1500 pickups, at $1,695."

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[Beachin 74]

We all see it right there in the build and price summary. Basically just a profit center for Ford and other automakers.

Latest Consumer Reports has a good article about it.

https://www.consumerreports.org/buying-a-car/the-truth-about-destination-fees/

"Car buyers often pay extra for options like leather seats and high-end sound systems, but delivery is no more optional than a windshield. And almost no other business expects consumers to pay separately to send goods to stores."

“The automaker should be responsible for getting their product to the retailer, just like eggs to a grocery store or electronics to a store such as Best Buy,” says Jack Gillis, executive director of the Consumer Federation of America.

"Destination fees rose an average of 90 percent on Chrysler, Dodge, and Jeep vehicles; 74 percent on Ram trucks since 2011; and 114 percent on Fiats since 2012. "

"Other models with sizable destination fees include the much anticipated new Ford Bronco and the smaller Ford Bronco Sport, for which the fee is $1,495, and the 2021 Ford F-150 and Ram 1500 pickups, at $1,695."

Would Jack Gillis feel better if the $1495 was included in the MSRP? Just like the egg producer and the electronics producer the transportation is in their price. The cost is going to be paid by the consumer one way or the other. Same difference.

 

[Brongo]

Would Jack Gillis feel better if the $1495 was included in the MSRP? Just like the egg producer and the electronics producer the transportation is in their price. The cost is going to be paid by the consumer one way or the other. Same difference.

I guess that begs the question of why is it a separate line item then?

I think it should just be in the MSRP since it’s not like it’s a tax write off or anything else to the consumer.

It must really sting for the buyer that lives closest to the facility making them that pays the same destination as the person that is 1000 miles away. Is that what destination means?

If so, that’s the only reason I would say it should be a separate item. If it adjusts based on how far it had to ship to get to a specific dealer. Otherwise put it in the MSRP so it’s not a point of contention.

Just my 2¢.

 

[Squatch]

I guess that begs the question of why is it a separate line item then?

I think it should just be in the MSRP since it’s not like it’s a tax write off or anything else to the consumer.

It must really sting for the buyer that lives closest to the facility making them that pays the same destination as the person that is 1000 miles away. Is that what destination means?

If so, that’s the only reason I would say it should be a separate item. If it adjusts based on how far it had to ship to get to a specific dealer. Otherwise put it in the MSRP so it’s not a point of contention.

Just my 2¢.

Like all fun things about cars, it's required by the government.

https://www.kbb.com/car-advice/what-are-destination-charges/

 

[Beachin 74]

I guess that begs the question of why is it a separate line item then?

I think it should just be in the MSRP since it’s not like it’s a tax write off or anything else to the consumer.

It must really sting for the buyer that lives closest to the facility making them that pays the same destination as the person that is 1000 miles away. Is that what destination means?

If so, that’s the only reason I would say it should be a separate item. If it adjusts based on how far it had to ship to get to a specific dealer. Otherwise put it in the MSRP so it’s not a point of contention.

Just my 2¢.

That's just Ford's (and other car manufacturers) way of doing things. They could put it in the price of the vehicle, I guess that would make some folks feel better that live closer to MAP.
In the end the cost will get passed to the consumer.

 

[Brongo]

Like all fun things about cars, it's required by the government.

https://www.kbb.com/car-advice/what-are-destination-charges/

Well there you have it! Thanks for helping to put this to rest!

 

[Coldsmoke]

It's a

I guess that begs the question of why is it a separate line item then?

I think it should just be in the MSRP since it’s not like it’s a tax write off or anything else to the consumer.

It must really sting for the buyer that lives closest to the facility making them that pays the same destination as the person that is 1000 miles away. Is that what destination means?

If so, that’s the only reason I would say it should be a separate item. If it adjusts based on how far it had to ship to get to a specific dealer. Otherwise put it in the MSRP so it’s not a point of contention.

Just my 2¢.

Its a similar argument to electric and gas bills for your home. They break out delivery charges separate so that the consumer can see the true cost of the resource and not be influenced by the inherent cost to deliver it to their household, (ie: logistics, infrastructure costs, ongoing repairs/maintenance, etc). By the way, that article is wrong about all other products including the delivery into their cost. I just purchased items for a boat and "the cost" was inflated by over $200 in delivery charges. Last month I bought a new camera from a company in NY... shipping an additional $29. Buying something online from a majority of vendors, and shipping is an additional charge you pay. Compare brick and mortar prices to what you find online and the cost is often inflated by some interesting & variable amounts. Freight / shipping / delivery, whatever you want to call it, is a real expense. Personally, I prefer to see it separately even if it is an average, calculated, or made up number.

 

[XCR440]

Yep, its required, If CR would actually do some research, or actually cared about improving things, they'd go after DOC fees, those are the ones that shouldn't be legal.

 

[Broncodave]

You guys are cracking me up. This group wails over a change in the price of an option on the B&P website, or says things like "you'll have to pay inflation costs if you get a 2022", yet the destination fee is just explained away as something Ford has to charge.

Required? Yes, it's required as a line item, but it's not required to be $1500. Would you guys just blindly accept it if Ford made it $1995? $2495? Where is the limit before you wonder if this is really Ford's cost to deliver a vehicle?

Here's from the post above about it being required: "Destination fees must be itemized and clearly listed on the “Monroney” label, or window sticker of each new vehicle. The United States government requires it. That’s because destination fees get based on direct costs."

Yet the car companies can't come up with what the actual costs are. And the costs are going up much faster than inflation or any other explanation. And different car companies charge vastly different prices for the same service.

Did people even actually read the article I posted, or are they they just making comments off of the few bits I quoted?

p.s. I'm not up in arms about this subject. I just thought it was interesting.

 

[395N]

You guys are cracking me up. This group wails over a change in the price of an option on the B&P website, or says things like "you'll have to pay inflation costs if you get a 2022", yet the destination fee is just explained away as something Ford has to charge.

Required? Yes, it's required as a line item, but it's not required to be $1500. Would you guys just blindly accept it if Ford made it $1995? $2495? Where is the limit before you wonder if this is really Ford's cost to deliver a vehicle?

Here's from the post above about it being required: "Destination fees must be itemized and clearly listed on the “Monroney” label, or window sticker of each new vehicle. The United States government requires it. That’s because destination fees get based on direct costs."

Yet the car companies can't come up with what the actual costs are. And the costs are going up much faster than inflation or any other explanation. And different car companies charge vastly different prices for the same service.

Did people even actually read the article I posted, or are they they just making comments off of the few bits I quoted?

p.s. I'm not up in arms about this subject. I just thought it was interesting.

Same as the Rubicon Dave.

 

[Broncodave]

Same as the Rubicon Dave.

Yep.

"Stellantis, the company formerly known as Fiat Chrysler that’s behind the Chrysler, Dodge, Fiat, Jeep, and Ram brands, among others, is a notable example. Destination fees rose an average of 90 percent on Chrysler, Dodge, and Jeep vehicles ; 74 percent on Ram trucks since 2011"

 

[Karl_in_Chicago]

You guys are cracking me up. This group wails over a change in the price of an option on the B&P website, or says things like "you'll have to pay inflation costs if you get a 2022", yet the destination fee is just explained away as something Ford has to charge.

Required? Yes, it's required as a line item, but it's not required to be $1500. Would you guys just blindly accept it if Ford made it $1995? $2495? Where is the limit before you wonder if this is really Ford's cost to deliver a vehicle?

Here's from the post above about it being required: "Destination fees must be itemized and clearly listed on the “Monroney” label, or window sticker of each new vehicle. The United States government requires it. That’s because destination fees get based on direct costs."

Yet the car companies can't come up with what the actual costs are. And the costs are going up much faster than inflation or any other explanation. And different car companies charge vastly different prices for the same service.

Did people even actually read the article I posted, or are they they just making comments off of the few bits I quoted?

p.s. I'm not up in arms about this subject. I just thought it was interesting.

As a former manager once told me "Don't bring me problems if you don't have solutions".
So, Dave, what's your (workable) solution?

 

[Broncodave]

As a former manager once told me "Don't bring me problems if you don't have solutions".
So, Dave, what's your (workable) solution?

Again, I'll ask, when would it become a problem for you? Would $1995 not be a "problem"? How about $2495?

Look, it was just an interesting article about how automakers are now using the destination fee to get some more profit out of the vehicles. The solution would be "charge actual cost and don't nickel and dime your customers." But seeing as how there is zero concern about it from most everyone here, then Ford and all the other automakers are smart to keep doing it.

B6G:

Dealer tacks on $200 to the doc fee - "Those sleazy, low-life dealers!"
Ford tacks on $200 to the destination fee- "Thank you Ford, can we have another!"

 

[Karl_in_Chicago]

Again, I'll ask, when would it become a problem for you? Would $1995 not be a "problem"? How about $2495?

Look, it was just an interesting article about how automakers are now using the destination fee to get some more profit out of the vehicles. The solution would be "charge actual cost and don't nickel and dime your customers." But seeing as how there is zero concern about it from most everyone here, then Ford and all the other automakers are smart to keep doing it.

B6G:

Dealer tacks on $200 to the doc fee - "Those sleazy, low-life dealers!"
Ford tacks on $200 to the destination fee- "Thank you Ford, can we have another!"

So, in answer to my question, "you got nothin', eh?".

 

[395N]

Again, I'll ask, when would it become a problem for you? Would $1995 not be a "problem"? How about $2495?

Look, it was just an interesting article about how automakers are now using the destination fee to get some more profit out of the vehicles. The solution would be "charge actual cost and don't nickel and dime your customers." But seeing as how there is zero concern about it from most everyone here, then Ford and all the other automakers are smart to keep doing it.

B6G:

Dealer tacks on $200 to the doc fee - "Those sleazy, low-life dealers!"
Ford tacks on $200 to the destination fee- "Thank you Ford, can we have another!"

I hear you Dave.
For me, at the end of the day, I want the Bronco and frankly the destination fee is the cost of wanting this vehicle. You ask to what end...sad as it sounds whatever they are charging.
At some point you need to paint or get off the ladder. I'm painting.
I have the money and as unsavory as the fee in question is it is not enough for me to look elsewhere to save a few hundred bucks.

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