Yahoo Autos What is a destination charge? And do you have to pay them?
This is part of our Car Buyer's Glossary series breaking down all the terms you need to know if you're buying a new or used car from a dealership.
Looking at the line-item breakdown of what it actually costs to buy a car can sometimes be stressful. Cars are already expensive, and then there are hundreds of dollars in individual fees tacked on. Let's cover one that seems suspiciously simple: the destination charge.
Related: What is MSRP?
What does the destination charge cover?
Also known as the destination fee, the destination charge theoretically covers the cost it takes to get a car from the factory to the dealership. Some dealers and automakers have other terms for it, whether it's "freight," "handling" or "DFC," but it should be the only fee you pay to cover the costs associated with getting your car to the dealership where you bought it. It's usually a flat fee, meaning it doesn't vary by region. It's "equalized" – that is to say, the average cost to ship cars all over the country. If your dealer is right next to the factory that built the car, too bad – you have to pay, too, so folks a couple thousand miles away don't have a massive charge.
Is the destination charge regulated by the government?
The way in which the destination charge is calculated (that equalization thing mentioned above) is government-mandated, as is the need to make it an individual line item on the Monroney sheet – that window sticker with the MSRP and all the other options fees broken out.
