Curious about "Destination Fee" & "Preparation Fee" ?

[PopeyeFAFL]

N.B.: French Version, down below.I'm just curious, is the "Destination Fee", for a new car, the same regardless where you live ?For example, if you buy a Vibe (which is built in California, as you all know) and you live near that factory (or at least your dealer is within 60 miles of the factory) does the Destination Fee the same ($560 US approx) as if you live in Vermont ?If the price is different, depending of the distance, then I can understand, that in a spirit of competitiveness and fairness, this “Destination Fee” is calculated separately. But if it is the same price for everybody, then why not include that price in the sale price (like most other good), the dealer could always “detailed” the cost for tax purpose, later on.I understand that at the end, it will be the same, but I’m under the impression that “Destination Fee” must be pretty much equivalent (I could be wrong there) from one brand of car to another, comparable size cars, I means (therefore not really a competitive advantage of calculating it separately).Also, I imagine, that when a car live the factory, there must be a minimum of tests done on that car, the battery must be charge, a minimum of gas in the tank, most fluid levels, ok (brake fluid, engine oil, prestone, windshield washer, etc.) before it is shipped in a truck or a train.Therefore, what are the dealer “Preparation Fee” consists of (removing the protective plastic all over the car ?).************************************************************Je suis curieux, est-ce que les frais de transport, pour une voiture neuve, sont les mêmes, qu’elle que soit l’endroit ou vous restez ? Par exemple, si vous achetez une Pontiac Vibe qui est construite en Californie, et que vous restez (ou du moins le concessionnaire) à proximité de l’usine (ou à 100 km de l’usine), est ce que les frais de transport seront de $950 CDN ($560 sur le site Américain) tout comme si vous habitez le Québec. Si les prix sont différents, dépendamment de la distance, alors je peut comprendre que dans un esprit de compétition et de justice, on calcule ces frais de transport séparément, mais si c’est le même prix pour tout le monde, alors pourquoi ne pas l’inclure dans le prix du véhicule (rien n’empêche le concessionnaire de ventilé ces chiffres pour fin d’impôt de son côté, je comprends que ça revient un peu du pareil au même, mais pourquoi ne pas inclure ce fameux $1000 au prix de vente, ces frais de transport sont probablement comparable, pour des véhicules comparables, donc pas vraiment d’avantage compétitif à le calculer séparément). Aussi, j’imagine qu’une voiture qui sort d’une usine, doit passer un minimum de test avant d’être embarqué soit dans un camion, soit dans un train et qu’elle doit avoir la batterie chargé, un peu d’essence dans le réservoir, les niveaux de fluide ok (huile moteur, prestone, fluide de frein, lave vitre, etc.). Alors les frais de préparation du concessionnaire, ça se résume à quoi, à enlever les plastique de protection un peu partout sur la voiture ?

[ragingfish]

Quote, originally posted by MSN Autos »Destination ChargeDestination charge is the amount the automaker charges the dealer to deliver a new vehicle from the factory. This charge can vary among automakers as well as among different vehicles. In most cases the destination charge for a given vehicle is the same to any point in the United States, whether the car has to travel across town to a dealer in Detroit, or across the continent to a dealer in Los Angeles. Since it is a fixed, unavoidable cost to a dealer, destination charges seldom can be negotiated.Dealer prep fees vary, and what they cover varies as well. Often times prep is minimal, including removal of plastic from the interior and exterior surfaces, filling the gas tank, topping off fluids, in some cases, little add-ons (for example, in the case of the Vibe, installing the plastic covers that cover the holes in the frame where the car is tethered down to the truck, installing the shift lock override cover), and in some cases, fuse installation. Most dealers will also test drive the car to ensure everything sounds and operates normally, and detailing the vehicle. It can also included passive preparation, such document preparation, title verification and contract processing.Some car manufacturers will reimburse the dealer for this. I do not know if GM is one of those manufacturers. Many people successfully negotiate the charge for dealer prep out of the contract of sale.

[cohocarl]

Yes, the way I understand it, destination fees are the same for the lower 48 states (I don't know about Alaska or Hawaii), but I've never seen, or paid a "dealer prep" fee. I've purchased 6 new vehicles over time, and haven't seen anything like a prep fee. The only thing I saw when we ordered my wife's 01 Stratus R/T was an "advertising fee" which by the time I had the salesman, then the sales manager give me a good explanation of what it is, they knew I wasn't going to pay such a thing and they took it off. It's possible that a "prep fee" may be a localized thing that dealers found a way to get more $$ out of people. Kind of like the $100 pinstripe, or $200 paint protection ($5 bottle of wax and paying a kid an hour of minimum wage to slop it on).

[jake75]

The auto companies sometimes explain the destination charge this way - it is not just to cover the cost to get the car from the mfgr plant to the dealer, it is also the cost to get the parts from that mfr to the car mfgr. It's more tradition than anything else. Allows them to advertise a slightly lower price - also there is no dealer markup in the destination charge. The cell phone companies have apparently learned form the automakers. Look at their "regulatory comp;iance fee" etc. Or the typical 3 to6% shop charge" at the service dept.The advertising fee(s) would only come into play if you were doing a deal based on the invoice price. The adv fee(s) are on the invoice, as often are fees for "customer contact" and "5 extra gal of gas" and they are part of the invoice that is paid by the dealer. If your deal is $49 over invoice that charge is fair. If they make a straight discount deal and then try to add these fees, that is just "wrong". Edmunds and KBB ought to be more informative about these fees. They vary geographically but they should be able to include them on their pricing info.

[AKLGT]

destination fees are the same here. but what they do is called a market adjustment where they take 10% of the base price and add that to the vehicle price tag. now i don't know many people who pay it, but i'm sure they have. it just means the dealer will give you $2000 off the price tag, except $1800 is added to the msrp in the first place, so you're only getting $200 off. i don't believe i've ever paid for the mark up, but have had a number of dealers try.

[jake75]

I saw a supplemental sticker once with "ADP $2,000.00". Asked what that meant - was told "additional dealer profit".The other ploy is to have all cars include the paint and fabric treatment at a charge of $2,000". Mfgrs used to (perhaps still do) have items that added hundreds to the MSRP but very little to the invoice. That allowed the dealer to advertise big "discounts" but also tricked the financial institutions doing leases as they based residuals on a % of msrp. Examples were the "gold package" and "interior wood grain trim" on my 1997 Toyota Corolla.