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destination fee charge on loaner inventory car?

Whats your pick?

  • Wrong , Should be refunded! Car was used there and not transported to buyer

    Votes: 7 28.0%
  • Questionable

    Votes: 3 12.0%
  • Nope , thats how it is

    Votes: 15 60.0%

  • Total voters
    25
Just want to see how you guys feel about this.

I am looking back on my purchase of a S100D from inventory on 3-31-18 , used as a service loaner and sold to me with ~2600 Miles....

Seems kind of wrong that i paid a destination fee of $1125 considering i picked it up at the SC & it was there to begin with.....


What do you guys think?
 

ChadS

Last tank of gas: March 2009
Jul 16, 2009
3,438
2,886
Redmond, WA
I paid it on my inventory car.

It does seem odd when it has already been transported, but then you also pay the fee on a new car (and inventory cars are sold as new cars) even if you pick it up at the factory.

The manufacturer can pick the amount, but I think there is a federal law (though I have not read it myself) that says the amount has to be the same for everyone. So it is an average charge, rather than a charge for actual expense to get it to you.

More info HERE.
 
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Kuhz

Active Member
Oct 25, 2017
1,911
2,113
Mars
That’s strange. I had mine shipped from Fremont to Seattle and there is no destination charge. Apparently if the car is coming from the factory they don’t charge delivery since so many trucks go back and forth. Yes it was a new inventory not a new order (long story)
 
I paid Both destination and another $2k to transport my inventory car to me. It had 4K miles being used as a service loaner, but sold new to me. I didn’t understand how I could pay Both destination as wel as transport costs but no one was even remotely helpful in explaining it to me during the purchase process

oh my. what a scam. first, 4K as new? and then second, both transport AND destination charges? :confused: *mindboggles
 

ChadS

Last tank of gas: March 2009
Jul 16, 2009
3,438
2,886
Redmond, WA
oh my. what a scam. first, 4K as new? and then second, both transport AND destination charges? :confused: *mindboggles

If it has not been titled to a customer, then it is a new car. Tesla gives a nice discount for the miles that you did not mention.

Given that it is a new car, the destination charge is just part of the package.

They don't have to charge the transportation fee, but it is a real cost they incur and they want to encourage local purchases.

If the total is too high, the customer could buy a local car, or a new car, or another brand. It is the customer's decision on whether it is worth it or not. Given how quickly the inventory cars sell (I got a fantastic deal on mine) apparently many think it is well worth it.

I see nothing boggling.
 
There is a Federal mandate that a destination fee must be charged on all new cars. A car that has never been titled to a consumer is a new car.

The dealer destination fee: what is it, and should you pay it?

If it has not been titled to a customer, then it is a new car. Tesla gives a nice discount for the miles that you did not mention.

Given that it is a new car, the destination charge is just part of the package.

They don't have to charge the transportation fee, but it is a real cost they incur and they want to encourage local purchases.

If the total is too high, the customer could buy a local car, or a new car, or another brand. It is the customer's decision on whether it is worth it or not. Given how quickly the inventory cars sell (I got a fantastic deal on mine) apparently many think it is well worth it.

I see nothing boggling.

verbatim from murphys90D's link, haha :rolleyes:

What about other fees described as transportation or delivery charges?

Here's the wrinkle: sometimes there's another delivery-type charge added afterwards, in addition to the standard destination fee. This is kind of a sneaky move unscrupulous dealers might try to slip in. Basically, it's an extra and unnecessary charge. The dealer might try to tell you that it's the cost of getting the vehicle to this specific lot, being particularly far away from the factory, or something like that – but since you now know about "equalized" destination charges, you can tell the dealer you're only paying the charges listed on the window sticker. End of story.
 
I purchased an inventory car that was located in Georgia (I'm in Ohio).
I paid the exact same destination fee ($1200) that every new owner paid at that time, which is an average across the board. Clearly a delivery to San Francisco would be less, however a delivery to Augusta, Maine would be more.

I had the option to fly down to Atlanta and pick the car up. I chose to pay the additional $750 transportation fee and take delivery at my local service center.

I was also looking at a car in Cincinnati which would have only been a $250 transportation fee. However, I was also looking at a car in Seattle which I believe was a $1500 transportation fee.

The thing is, Tesla already incurred the cost when they delivered the new car to the showroom (destination fee). This is still yours to pay. This is no different at any manufacturer's dealer's lots.

From there, if I wanted it transported further, this is when the transportation fee comes into play, and is variable depending on where the car is and where you want it delivered.
 
Last edited:

ChadS

Last tank of gas: March 2009
Jul 16, 2009
3,438
2,886
Redmond, WA
What about other fees described as transportation or delivery charges?

Here's the wrinkle: sometimes there's another delivery-type charge added afterwards, in addition to the standard destination fee. This is kind of a sneaky move unscrupulous dealers might try to slip in. Basically, it's an extra and unnecessary charge. The dealer might try to tell you that it's the cost of getting the vehicle to this specific lot, being particularly far away from the factory, or something like that .

That quote is about straight-from-the-factory cars that are only transported once. This thread is about a car that is transported twice.
 

whitex

Well-Known Member
Sep 30, 2015
6,974
8,901
Seattle area, WA
Just want to see how you guys feel about this.

I am looking back on my purchase of a S100D from inventory on 3-31-18 , used as a service loaner and sold to me with ~2600 Miles....

Seems kind of wrong that i paid a destination fee of $1125 considering i picked it up at the SC & it was there to begin with.....


What do you guys think?
This seems like nit-picking compared to the rest of your buying experience so far:
The Saga continues.....Regretting this purchase
Destination fee is federally mandated, you'll have to take it up with your local Congress representative.
 
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ChadS

Last tank of gas: March 2009
Jul 16, 2009
3,438
2,886
Redmond, WA
Agreed that it doesn't matter for new-car status, federal tax credit or destination charge. But it does matter for the transportation fee.

OP does not seem to have been charged the transportation fee, appropriate given his car was only transported once. Getting hit with both came up in post 6. That car was transported twice and properly had both fees, but someone called that a "scam" so then the conversation changed.
 
Last edited:
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The Destination & Doc fee is not the same as Transportation fee. D&D is a mandatory fee that every new car has to pay, regardless of pickup location. Transportation fee is the actual cost of trucking the car from an original location to another requested by the purchaser. Tesla can waive that if they want to.
Think of it as buying a pair of shoes. You can go to the store/their location to pick it up, or you can ask the store to ship the shoes to your location. The store can then charge you for shipping or they can eat that shipping cost to close the deal.
When I purchased my S, I paid the D&D charge, but had the car delivered to my home for free because I live over 400 miles away from the nearest service center. My OA tried to sell me an inventory car and explained that they will cover the extra transportation fee of $1500 to sweeten the deal. So Tesla can waive the transportation if they want to.
 
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Reactions: JohnnyG

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