Destination Charges: The Fee Quietly Driving Car Prices Higher

Issue #186

We all know cars are more expensive lately. However, there’s one fee that we might not have considered.

It’s rising, and it will not stop. Here’s everything to know about destination charges.

Or, you can continue to read by scrolling down.

Market News

• This small automaker wants to make big strides in the US. It won’t be easy, but they’re fun cars. 

• The 2027 Chevy Silverado goes back to basics with a configuration we all love. Here’s more. 

• Consumer Reports releases the five major car brands you should avoid. Jeep leads the way. Are you surprised?

• Many are loving the 2026 Subaru Trailseeker EV. Here’s why. 

• Auto theft is down, but not for these models.

Safety and Recalls

• GM recalls more than 44,000 vehicles because the steering wheel can lock. Here’s more. 

• Kia recalls more than 85,000 vehicles because a seat issue can lead to injuries in a crash. 

• Ford recalls 4.3 million (yes, 4.3 million) vehicles because of a towing issue.

Car Culture

• Aging cars can cost you 167% more than you had budgeted. Here are the reasons why. 

• One GM worker owned a bar next to the factory. The story is fascinating. 

• A classic car restorator gets 60 years of prison time because of this fraud. 

• The FAT Ice Race is where people come to race supercars. Here’s more on it. 

• Did Toyota soft-launch the new Celica? Here’s more.

Video Of The Week

Could all the hate for the 2026 Jeep Grand Wagoneed be unfounded? This review could dispell the hate.

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In The Know

The $1,600 Fee You Can’t Avoid (And Carmakers Love It!)

​One fee collectively cost car buyers $26 billion in 2025. It had nothing to do with the vehicle’s quality, nor was it a feature or add-on.

Instead, it’s a formality, and if you don’t pay it, you might not get your car.

Here’s the thing: you can’t avoid it. We’re talking about destination charges, and as this (paid) article explains, they've cost car buyers billions. The problem is that it won’t change soon.

So, what is a destination charge? It’s the fee carmakers add to have the car delivered from the factory to dealerships all across the country. Historically, it had always been a few hundred dollars.

Now, it averages $1,500 or $1,600. Larger models command up to $2,000, as this free article explains.

Why did destination charges suddenly become so expensive? Consumer Reports found that these fees increased far more rapidly than inflation. 

For example, destination charges in 2024 ranged from $995 to $2,095. In 2026, it’s not unusual for them to start at $1,150 and go up to $3,250 for some Alfa Romeo models. You can learn more here, plus check out what are some of the more expensive ones.

So, you might be thinking, just as we did, that you can avoid destination fees. The sad reality is that you can’t, but why? It all comes down to how automakers calculate them, as this KBB article explains.

In short, automakers add up how much it costs them to ship all the vehicles they’ve sent to dealerships. Then they take the average and charge dealers that amount. These, in turn, charge buyers.

So, a buyer who lives 25 miles from the factory will pay the same as one who lives 2,000 miles away.

At the same time, since it’s a fee determined by automakers, there’s little you can do to change it. Plus, it becomes an excellent way for them to compensate for tariff impact.

After all, it’s unavoidable and outside of the control of dealerships and buyers. It will not be included in the MSRP, but it should be clearly highlighted.

That’s why automakers have increased them by an average of 10% in one year, as you can read here. 

So, where does this leave the buyer? Unfortunately, it’s another way cars are becoming more expensive.

It’s not the best position, because there’s little negotiation room in this aspect. However, you can inform yourself and leverage other aspects to make up (a bit) for the increasing costs. At least, now you know.