QUESTION: Is the destination charge on the new car window sticker legitimate, or is it just added profit for the car dealer?

September 28, 2005

Hi Tony

I have read your website and currently have more than one dealership offering me prices below invoice on the same new 2006 model (Subaru Impreza 2.5rs). Your website has been extremely informative and I thank you so much.

My question is: Is the destination charge that a dealership puts on the window sticker really real or is it just an added bonus for the dealership? As far I could tell this was not addressed on the website.

Thanks,

Ryan

Answer:

Hi Ryan,

Thank you Ryan for your kind comments about my website. In answer to your question the destination charge on the factory window sticker is indeed legitimate.

It is what the factory charges to transport the new vehicle from the factory or the port-of-entry to the car dealer. The car dealer invoice, which is what the dealer actually pays, also contains the same destination charge. It's part of the price of the car and there's nothing anybody can do about it.

I must say one thing however, I have never actually seen a Subaru invoice. I assume they are formatted the same as the rest! In any event, the destination charges should not be an additional add-on.

Remember this however, some dealers have been known to add an additional window sticker listing anything from additional destination charges to "additional dealer profit!" If you encounter one of these you can be sure whatever is listed on it is negotiable.

All my very best...

Tony Iorio