A quiet but costly surge in new-car pricing
- Delivery fees that buyers cant negotiate away are rising faster than inflation
- Some vehicles now carry destination charges topping $2,000
- Consumer advocates say automakers are using the fees to pad profits
Destination charges the fees carmakers add to cover delivery of a new vehicle from factory to dealership are climbing sharply, becoming one of the stealthier ways the cost of a new car keeps rising.
The average destination fee, once a few hundred dollars, now regularly exceeds $1,500 and can top $2,000 for larger models such as the Jeep Wagoneer. According to Consumer Reports and Kelley Blue Book analyses, the average fee has risen far faster than inflation over the past decade from roughly $839 in 2011 to more than $1,200 by 2020, with continued increases since.
Nonnegotiable and often unnoticed
Unlike dealer markups or optional add-ons, destination charges are nonnegotiable and apply no matter how close a buyer lives to the factory. Automakers say the fees cover rising freight and logistics costs as vehicles get larger and heavier, limiting how many can fit on a carrier or railcar.
Consumer advocates counter that the lack of transparency around how the fees are calculated allows manufacturers to quietly boost profits. Many car ads list prices excluding destination charges, leaving buyers surprised when they see the final invoice.
A bigger share of the sticker shock
The increases mean destination charges are taking up a larger share of the total cost of a new vehicle an unwelcome trend as car prices, loan rates and insurance premiums all remain high.
Experts recommend buyers focus on the out-the-door price rather than the advertised MSRP, since destination fees are mandatory. While shoppers cant negotiate the charge itself, they can compare models and brands to find lower overall costs.
Some recent examples
Here are current destination-fee snapshots for a few major automakers to give you real examples of how much the non-negotiable delivery part of a new car is grabbing from the total price.
Toyota
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The 2025 Toyota Corolla LE lists at $23,520 including a $1,195 destination fee. (SlashGear)
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The 2025 Toyota RAV4 starting price includes a $1,395 destination fee (entry-level LE model). (MotorBiscuit)
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For the 2025 Toyota Camry the destination fee is listed as $1,095. (Car Buying Strategies)
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And for the 2025 Toyota Sienna minivan the pricing documentation says including $1,450 destination charge. (Edmunds)
Key takeaway: Toyotas destination fees are in the ~$1,095 to $1,450 range depending on model type relatively moderate but non-trivial for buyers.
Tesla
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Tesla clearly states a Destination and Doc Fee of $1,390 for its U.S. vehicles. (SolarReviews)
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Their ordering FAQ confirms the destination fee is non-negotiable and shown separately. (Tesla)
Key takeaway: Teslas fee is firmly above $1,300 and adds a disclosed chunk to the advertised price.
Chevrolet (and full-size trucks / SUVs general benchmark)
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The 2025 Chevrolet Suburban has a destination charge listed at $1,995. (Kbb.com)
Key takeaway: Larger vehicles (full-size SUVs/trucks) are carrying destination fees approaching the $2,000 mark.
Summary
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Shoppers should expect destination fees in the ballpark of $1,000 to $1,500 for many conventional cars/SUVs (Toyota, Tesla, etc.).
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For larger vehicles (full-size SUVs/trucks), destination fees are easily $1,500-$2,000 or more.
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These fees are non-negotiable, must be paid, and are separate from the MSRP. (Edmunds)
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When comparing vehicles or negotiating price, you must include the destination fee in your out-the-door calculation.
Posted: 2025-10-27 13:36:31
