Destination Charge
A destination charge is a fixed fee set by the manufacturer to cover the cost of shipping a vehicle from the factory to the dealership. Unlike other dealer-added costs, destination charges are non-negotiable and must be paid by all buyers, regardless of location.
These charges typically range from $900 to $1,500 for most vehicles, though larger or imported vehicles may cost more. The fee is disclosed on the vehicle’s window sticker and included in the final purchase price but not in the MSRP itself.
Because it applies uniformly, the destination charge ensures consistent pricing across regions and dealers. Buyers should be aware that dealers sometimes add “delivery” or “processing” fees on top of the destination charge, which may be negotiable.
Understanding the destination charge helps consumers distinguish between legitimate manufacturer-imposed costs and additional dealer markups, allowing for more transparent negotiations.
Example
Sophia buys a new sedan with an MSRP of $28,000. The window sticker shows a $1,095 destination charge. Even though she negotiates the vehicle price down to $27,000, the destination fee is added, bringing her final cost to $28,095 before taxes and registration.