Destination fee

[slasher]

Hello,

Been a long time lurker here, and just pulled the trigger on an inventory Model S 90D. The OA menttioned the car just rolled off the factory floor in Fremont, CA and that I could arrange to pickup from the delivery center there.

I have one question - I see a "destination fee" of $1,125. What is this fee actually getting me? the car is not being delivered to my local Tesla Showroom (or my house for that matter). Is it possible to have them drop this fee altogether?

 

[siucity]

Hello,

Been a long time lurker here, and just pulled the trigger on an inventory Model S 90D. The OA menttioned the car just rolled off the factory floor in Fremont, CA and that I could arrange to pickup from the delivery center there.

I have one question - I see a "destination fee" of $1,125. What is this fee actually getting me? the car is not being delivered to my local Tesla Showroom (or my house for that matter). Is it possible to have them drop this fee altogether?

Unfortunately you'll still have to pay it even if you pick it up at the factory.

 

[boaterva]

Been asked many times; this is a fixed price thing for all manufacturers (meaning for one manufacturer, they charge the same no matter where you are in the country; not sure what they do for overseas!). This has been the regulation for many years, so they don't have to calculate the cost based on mileage, etc. No matter whether it's from Fremont to Maine, or you get it at the Fremont Delivery Center, it's the same.

 

[slasher]

Unfortunately you'll still have to pay it even if you pick it up at the factory.

Thank you for your response! However, what does the "Destination fee" actually mean?
I have seen some posts on this forum that indicated that some people were able to have this fee dropped.

 

[boaterva]

Thank you for your response! However, what does the "Destination fee" actually mean?
I have seen some posts on this forum that indicated that some people were able to have this fee dropped.

Got details? Never heard of it. It's to handle the travel/shipping cost is what I understand. And as an average cost, I can't recall it ever being waived or why they would do so. Perhaps there was a credit for something else, but not the destination cost per se.

 

[slasher]

Got details? Never heard of it. It's to handle the travel/shipping cost is what I understand. And as an average cost, I can't recall it ever being waived or why they would do so. Perhaps there was a credit for something else, but not the destination cost per se.

See Post #30 in this thread:
Just ordered a discounted inventory car

 

[redy]

See Post #30 in this thread:
Just ordered a discounted inventory car

Yeah. First time I am seeing that. Never saw the 1200 waived. Sometimes there is a 2000$ transport fee for inventory models from other locations to be transported, that can be waived I believe.

 

[boaterva]

Yeah, me also. I was talking about new orders originally. On used, I think they can do what they want because it's not a real destination fee, it's the 'cost to move the car from where it is now' and if they want to sell it, it's a little different.

On a new (custom order), I doubt you will see that.

 

[slasher]

Yeah, me also. I was talking about new orders originally. On used, I think they can do what they want because it's not a real destination fee, it's the 'cost to move the car from where it is now' and if they want to sell it, it's a little different.

On a new (custom order), I doubt you will see that.

This was a new (inventory) order, not a custom order. But yes, it is a new car. I will check with the OA on this possibility.

 

[xyeahtony]

destination fee is the price that it supposedly costs for the manufacturer to prepare the car for delivery. This can include transportation, detailing, paperwork, etc. I know for traditional dealers this fee sometimes includes the marketing fee the dealers have to pay the manufacturers for local/national ads.

 

[rexki]

$1,125 - "Destination Fee" is not compliant with Automobile Information Disclosure Act - 15 U.S.C 1232, Section 3
It should be "Transportation" fee.

GM and Chrysler are now under class action law suit alleging profit in the transportation fee number. 30 years ago the industry jumped off sections of the Federal law and jumped on the easy boat called "industry adopted equalized transportation fees". This is going to be interesting to see if this becomes a profit center and the methods will have to be disclosed at how they "equalize"

The GM class action lawsuit was filed in the U.S. District Court for the Southern District of California: Romoff, et al., v. General Motors LLC.