Judge Rules GM Wasn’t Deceptive With Its Destination Charges

Destination charges have been increasing in the auto industry. Some customers aren’t too happy about it, especially the fact that automakers may be making a profit off of these charges that the companies often try to separate from the vehicle’s price. Automotive News reports that a class action lawsuit against GM over customer concerns about GM making a profit over destination charges has been dismissed.

The suit was originally filed in 2021 in the Southern District of California and consisted of two plaintiffs, Robert Romoff from California and Joe Siciliano from New Jersey. Romoff purchased a 2021 Chevy Equinox and paid a $1,195 destination charge while Sicilino paid just $995 on his 2021 Cadillac Escalade. The suit said that the destination charge is “ generally understood in the automotive industry to reflect the manufacturer’s average cost of delivering one of its vehicles to a dealership. Line items are intended to inform consumers of the reason they are being charged.”

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But the plaintiffs claim that they were unaware that GM made a profit from the charges.

“For that reason, consumers do not generally expect line-item costs to include hidden profit.”