You’re not imagining it: destination fees have skyrocketed in recent years. What used to be a few hundred dollars added to the price of a new car has turned into a $1,000, $2,000, or even $3,000 mandatory charge, depending on the automaker.
A recent study by Consumer Reports shows just how much these fees have climbed. Some brands now charge as much as $3,250, while more than ten automakers have destination fees of over $2,000. Even the lowest destination charges now top $1,000, meaning buyers are paying significantly more just to get a car from the factory to the dealership.
Photo by: Alfa Romeo
At the top of the list is Alfa Romeo, which charges $3,250 in destination fees for models like the Giulia, Stelvio, and Tonale. The Tonale, for example, starts at $36,535 before destination. Add the $3,250 fee, and the effective starting price jumps to $39,785 before taxes and other charges.
Second on the list is Cadillac, which asks $2,895 for the Cadillac Escalade and Cadillac Escalade IQ. The Escalade already carries a hefty starting MSRP of $91,100, so once the destination fee is added, the price climbs to $93,995 before taxes and dealer fees.
Chevrolet and GMC tie for third with a $2,795 destination fee on many of their trucks and body-on-frame SUVs, including the Chevrolet Silverado, Chevrolet Suburban, and GMC Yukon. GMC also lands further down the list with a $2,695 destination charge specifically for the GMC Hummer EV.
Here’s what the top 10 looks like (destination fees may vary depending on the model):
- Alfa Romeo — $3,250 (Giulia, Stelvio, Tonale)
- Cadillac — $2,895 (Escalade, Escalade IQ)
- Chevrolet — $2,795 (Silverado 1500, Silverado 2500HD, 3500HD, Suburban, Tahoe)
- GMC — $2,795 (Sierra 1500, 2500HD, 3500HD, Yukon, Yukon XL)
- GMC — $2,695 (Hummer EV)
- Ram — $2,595 (1500, 2500HD, 3500HD)
- Jeep — $2,595 (Grand Wagoneer)
- Lincoln — $2,595 (Navigator)
- GMC — $2,595 (Sierra EV)
- Ford — $2,595 (F-150, F-250, F-350)
Thankfully, there’s at least some relief on the lower end of the destination fee spectrum.
Believe it or not, Mercedes-Benz still has the lowest destination fee in the US, charging $1,150 across its lineup of cars and SUVs. Toyota is close behind at $1,160, while brands like BMW, Acura, and Honda aren’t far off either. Here’s what the lower end of the pricing spectrum looks like:
- Mercedes-Benz — $1,150 (All Models)
- Toyota — $1,160 (Most Models)
- BMW — $1,175 (All Cars & SUVs)
- Acura — $1,195 (Integra)
- Honda — $1,195 (Civic, Prelude)
- Kia — $1,195 (K4, K5)
- Nissan — $1,195 (Z)
- Subaru — $1,195 (BRZ, Impreza)
- Volvo — $1,195 (V60)
- Mazda — $1,235 (3)
What Are Destination Fees, Anyway?
A destination fee covers the cost of transporting a vehicle from the factory or port to the dealership. That includes shipping by truck, rail, or boat, along with basic handling once the vehicle arrives at the dealer.
Automakers are required to disclose the destination fee when selling a new car, and it’s listed on the window sticker. However, the fee is almost never included in the base MSRP you see advertised online or in showrooms—and it’s non-negotiable.
So the next time you’re pricing out a new car, make sure to factor in the destination fee—it can add a lot more to the total than you might expect.
Motor1’s Take: Destination fees are pricier than they’ve ever been. Companies like Toyota and BMW used to charge only a few hundred extra dollars for shipping costs; now some automakers are asking over $3,000. It’s making already expensive new cars even pricier.