Most automakers jacked up destination charges big time in the past 4 years

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Shipping costs are certainly increasing, but destination charges are even higher.

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The price you see on a new car window sticker is not what you pay. And we’re not talking about taxes, we’re talking destination charge, This is the fee that automakers pay to car buyers for shipping the car from a production facility to a dealership somewhere in the US. Amid rising car prices across the board, new data from Edmunds shows that even these destination charges from most automakers are rising sharply.

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Nearly every automaker has raised destination charges over the years, except for one: BMW. Its fees actually dropped by 17% on average. But General Motors, Ford, Stelantis, Honda, Porsche, Hyundai and many others increased these charges by more than 20%. Ford and Porsche tied for 29% growth on average. The average Ford comes with a $1,393 destination fee, and the average Porsche requires buyers to cough up an additional $1,350. According to Automotive News, which reports on the data on Monday, has tripled the rate of inflation during the past decade.

On average, an automaker’s destination fee increased 12% compared to vehicles sold for the 2017 model year, which would include some cars sold in 2016 and 2017. This is roughly in line with general inflation over that period, but the figure will be much higher. High without BMW’s major drawback. The average increase means a new car these days usually has a destination fee of $1,200 attached to it.

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As per the statistics, Stelantis has the highest average destination fee. Buyers pay an average of $1,573 for Jeeps, Rams, Dodges and several other brands under Stelantis’ portfolio.

It is not entirely clear whether these destination duty hikes are driven by higher costs, whether it is increasing the average size of vehicles, or fewer drivers to deliver new vehicles to dealerships during the pandemic. However, one thing is certain: the high prices haven’t kept millions. new car buyer From buying a vehicle in 2021,

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