After a year of inflation, it shouldn’t surprise you that yet another facet of car pricing is on the rise. This time, it’s rising destination charges. A “destination charge” or “delivery fee” is an auto manufacturer’s fee for delivering a vehicle from the factory to the dealership. Destination charges are a dreaded part of the total MSRP.
In 2023, destination charges on new cars are rising. With interest rates increasing, every dollar matters even more, and understanding these fees can help you prepare for what to expect. These are the new cars with the highest and lowest destination charges in 2023.
The Cars With the Lowest Destination Charges
Make | Model | Destination Charge (2023) |
---|---|---|
MINI | Cooper | $995 |
MINI | Hardtop | $995 |
MINI | Clubman | $995 |
MINI | Countryman | $995 |
Chevrolet | Bolt | $995 |
Chevrolet | Malibu | $995 |
Subaru | Impreza | $1,020 |
Subaru | Legacy | $1,020 |
Subaru | BRZ | $1,020 |
Honda | Accord | $1,095 |
Nissan | Altima | $1,095 |
Volkswagen | Jetta | $1,095 |
Volkswagen | Passat | $1,095 |
Volkswagen | Golf | $1,095 |
MINI doesn’t just have the smallest cars, the beloved English brand also has the smallest destination charges of any automaker. At ‘just’ $995 for delivery to a MINI dealer near you, the destination fee is 30% lower than the industry average of about $1,400 in 2023. Will these be the last destination fees under $1,000? With where the market is headed, it’s quite likely.
The Cars With the Highest Destination Charges
Make | Model | Destination Charge (2023) |
---|---|---|
Jeep | Grand Wagoneer | $2,000 |
Jeep | Wagoneer | $2,000 |
Ram | 1500 | $1,895 |
Cadillac | Escalade | $1,895 |
Chevrolet | Silverado | $1,895 |
Chevrolet | Suburban | $1,895 |
Chevrolet | Tahoe | $1,895 |
Ford | F-150 | $1,895 |
Ford | Expedition | $1,895 |
GMC | Sierra | $1,895 |
GMC | Yukon | $1,895 |
Toyota | Tundra | $1,795 |
Nissan | Titan | $1,795 |
Jeep | Grand Cherokee | $1,795 |
Jeep | Cherokee | $1,795 |
Jeep | Compass | $1,795 |
Jeep | Gladiator | $1,795 |
Jeep | Renegade | $1,795 |
Jeep | Wrangler | $1,795 |
New car destination charges are up by a lot in recent years. Since 2017, destination fees are up by about 20% on average. Some manufacturers are much worse, with further hikes announced in recent months.
General Motors, Ford, Stellantis, Honda, Porsche, Hyundai and many others increased destination charges by over 20% in the past five years. In 2023, an unfortunate milestone was reached: the first mainstream models with $2,000 destination charges.
Jeep, Ram and Dodge Force Higher Destination Charges On Buyers
Stellantis charges the most for new car destination fees. The Jeep Wagoneer and Grand Wagoneer are both at $2,000 in 2023. But these two SUVs may not be alone in the $2,000-plus club for long. General Motors and Ford both raised their fees this year, with many models at $1,895.
America’s most popular trucks come with higher destination charges these days. The Ram 1500, Ford F-150 and Chevrolet Silverado all now have destination charges of $1,895 in 2023. That’s up hundreds of dollars from just a few years prior.
Are Destination Charges Negotiable?
Destination charges as a line item on the bill of sale are not negotiable, but you can offset the expense with negotiation know-how elsewhere in your car deal.
Here’s how CarEdge’s Ray Shefska explained how you can think of negotiating destination charges on a new car.
“The destination charges on the Monroney label (window sticker) are not negotiable in and of itself. The charge is part of the MSRP. When negotiating the price of a vehicle, the starting point is usually MSRP, and a discount off of MSRP can be negotiated. So, no you cannot negotiate the destination charge on a brand new vehicle, but you can negotiate savings elsewhere to offset this fee.”
As new car MSRPs continue to rise, negotiating car prices is more important than ever.
Here’s 10 cars with big MSRP increases in 2023, and the new cars with the smallest price increases. Is your next car on either list? Let us know what prices you’re seeing in the comments below.
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