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Some Car Companies Are Making a Lot More on Destination Fees Than Others: Study

Some Car Companies Are Making a Lot More on Destination Fees Than Others: Study

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Some Car Companies Are Making a Lot More on Destination Fees Than Others: Study

February 21, 2021
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Some Car Companies Are Making a Lot More on Destination Fees Than Others: Study
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When purchasing a vehicle, your bill of sale may include a number of charges on top of the MSRP. Advertising costs, dealer prep, documentation, and market adjustment are common terms for some of those nickels and dimes tacked on to the purchase price. The big one is the destination freight fee; the price varies wildly from manufacturer to manufacturer and model to model. Consumer Reports did a deep dive on this line item, which seems to be increasing year over year.

The study discovered that automakers raised destination fees by thirty percent between 2011 and 2020, which is two and a half times the average inflation rate. A quick look at a few automotive sites showed the results in real time: the destination freight fee for a small EV is $895 for 2020 models and an additional $100 for 2021 models. For a truck, the price increased from $1595 to $1695 for the newest model. 

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