What Is a New Car Destination Fee? Can You Avoid It?
When it comes to purchasing a new car, many buyers may be surprised to find an additional fee tacked on to the purchase price: the destination fee. But what is a destination fee, and can you avoid it?
A destination fee, also known as a delivery fee, is a charge automakers apply to new vehicles to cover the cost of transporting the car from the factory to the dealership. This fee is typically around $1,000, but can vary based on the make and model of the vehicle.
Unfortunately, there is no way to avoid paying the destination fee. It is a non-negotiable charge that is built into the manufacturer’s suggested retail price (MSRP) of the vehicle.
Some buyers may try to negotiate the destination fee with the dealer, but this is unlikely to succeed. The fee is set by the automaker and is the same across all dealerships.
However, buyers can try to mitigate the cost of the destination fee by negotiating the overall price of the vehicle. By negotiating the price of the car, buyers can lower the amount they pay for the car and reduce the impact of the destination fee on their total cost.
Additionally, some automakers may offer incentives or promotions that include rebates or discounts that can be applied to the destination fee. Buyers should check with their local dealership or consult the automaker’s website to see if any promotions are available to help offset the cost of the destination fee.