Destination Fee
What Is a Destination Fee?
Destination fee is a charge added to the vehicle price to cover transportation from the manufacturer to the dealership.
It is also known as a delivery or freight charge.
Destination fees are set by the manufacturer and are typically non-negotiable.
The fee appears on the vehicle’s window sticker.
Why It Matters
Destination fee:
- Increases total vehicle cost
- Is included in MSRP
- Is paid regardless of dealership location
Even if a buyer lives close to the factory, the destination fee still applies.
Understanding this fee prevents confusion during price negotiation.
How Destination Fee Works
Destination fee is included as a separate line item on the Monroney sticker.
Example: If MSRP is $30,000 and destination fee is $1,200, the total sticker price reflects $31,200 before taxes and dealer fees.
Dealers generally cannot remove the destination fee, though total purchase price remains negotiable.
Destination Fee vs. Documentation Fee
Destination Fee → Manufacturer-set transport cost
Documentation Fee → Dealer administrative charge
They are separate charges.
FAQs About Destination Fees
Is destination fee negotiable?
It is set by the manufacturer, but overall price may be negotiated.
Does every vehicle include a destination fee?
New vehicles typically include one.
Is destination fee included in financing?
Yes, it becomes part of the total financed amount if rolled into the loan.
Related Terms
