Beware of a fee that's non-negotiable when buying a car

Beware of a fee that's non-negotiable when buying a car

Buying a new car is great, but the process can be stressful.

The fee costing buyers more than ever is the destination or delivery change. It's non-negotiable and appears as a line item on car window stickers as "for delivery, processing and handling."

“We know destination fees have something to do with getting a car from the factory or U.S. port to a car dealership, but there’s not a lot of transparency beyond that,” said Mike Monticello, a car expert with Consumer Reports.

The fees are rarely disclosed in ads or on automaker websites.

Another issue Consumer Reports raised is that automakers have increased destination fees from an average of $840 in 2011 to $1,240 in 2020. That’s almost a 50% increase, and more than 2.5 times the rate of inflation.

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"Many consumer advocates suspect these fees are just a way for automakers to boost the bottom line without officially raising prices,” said Monticello.

Monticello said the best way to know exactly what you’re paying for a vehicle is to insist on discussing your “out the door,” all-in price.

If you don’t get the price you want, Monticello said, consider walking away. However, know many industry experts say given coronavirus pandemic-related manufacturing delays and component supply issues, vehicle supplies are down.

So, getting a great deal will likely take some extra work.

Monticello added that the best way to negotiate for a car is through email. Not only is it pandemic-friendly, but you have the details in writing before stepping into a dealership.