Shipping Charge Is Excessive!

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Thrillhouse

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FAR from the truth for vehicles that have been sitting on dealer lots for several weeks or longer!

We bought a BRAND NEW 2018 Thor Gemini RV with 5 cylinder 3.2L Powerstroke in October, 2018 that sat on dealer lot A LONG TIME. The MSRP was $107,390. We got it for $59,999.

A few years before that, we bought a brand new 5th wheel Winnebago RV that sat on dealer lot for literally a year. The dealer normally ONLY sold huge luxury motorhomes, but times were tough during the Obama recession, and they had to sell much cheaper RVs to stay in business.

Towards the end of Obama recession and his 2nd term, the dealer no longer continued stocking cheaper RVs, and went back to huge expensive luxury motorhomes, and the 5th wheel we got was the very last cheaper RV they had left. The MSRP was about $50K, and we got it for $30K.
There was no recession from 2009 to 2020 but carry on. Should have signed up with Ford Prime and got free two day shipping.
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Captain

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Mavericks are not sitting on lots for more than a few days!
The dealer is going to sell that Mav probably for more than the msrp you were going to pay and get the shipping fee also regardless of you going to another dealers vehicle.
Here is some old guys opinion, old guy being me. Please know that all those cars sitting in Dealers lots do not belong to the dealers…. They belong to a bank. Most, if not all those cars were bought from the manufacturer with a bank loan. Every so often a surprise audit is done by the bank and cars on the lot are counted, the totals are compared to the outstanding loans and they must match up. If there are missing cars, the bank knows 1 of 2 things happened.
1. The car was stolen.
2. Most probably the dealer sold the car and didn’t tell the bank so all the money stays at the dealership, until they get around to paying the bank for that particular car.
being former LE, bank audit day is a pain because the dealer doesn’t want anyone to know about the money deal so they may try to claim the missing cars are stolen until they can get the paperwork done for the sale to the bank, with the price of cars, trucks etc a few weeks of thousands in your account adds up to a nice profit.
 

Down

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As in this case, it is the uninformed that start the conspiracy theories.

In the old days you could pick up your vehicle at the factory and pay no shipping charge.

Chevy packed 30 Vegas into a rail car instead of the usual 15 to cut transport cost and be more competitive.

No matter where you buy a Maverick in the U.S, the charge is $1495. That's Denver, Miami, Seattle, Burlington, Fairbanks, Honolulu. ANY Ford dealer in the United States.
And the uninformed have no excuse to be uninformed. Literally the first article that comes up when Googling "Are destination fees negotiable" outlines damn near every point being made in this thread, from the fact that these costs typically are NOT negotiable, to the fact that you haven't been able to pick up at the factory to avoid this charge for decades.
https://www.kbb.com/car-advice/what-are-destination-charges/
 

brdl04

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The $1495 shipping charge is excessive!

A car carrier holds 9 vehicles. I seriously doubt it costs anywhere near $13,455 to ship even the furthest distance in the lower 48 from manufacturing plant. We should be able to negotiate a much lower shipping price!
When I worked for a Tier 1 Supplier for Jeep, destination was charged regionally. At the time (2011-12) It was $1100 west side of country, $900 east side no matter if you bought it from "Toledo Jeep Dealer Right Outside the Doors of the Plant" or 1000 miles away. Sure they make money on the closer shipments but probably lose on the further.
 

TSAINTS1115

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FAR from the truth for vehicles that have been sitting on dealer lots for several weeks or longer!

We bought a BRAND NEW 2018 Thor Gemini RV with 5 cylinder 3.2L Powerstroke in October, 2018 that sat on dealer lot A LONG TIME. The MSRP was $107,390. We got it for $59,999.

A few years before that, we bought a brand new 5th wheel Winnebago RV that sat on dealer lot for literally a year. The dealer normally ONLY sold huge luxury motorhomes, but times were tough during the Obama recession, and they had to sell much cheaper RVs to stay in business.

Towards the end of Obama recession and his 2nd term, the dealer no longer continued stocking cheaper RVs, and went back to huge expensive luxury motorhomes, and the 5th wheel we got was the very last cheaper RV they had left. The MSRP was about $50K, and we got it for $30K.
Comparing Mav's to RVs isn't even comparing apples to oranges. That's apples to cinder blocks. You're not even close. The RV world is a whole nother planet and any cross comparison only magnifies your misunderstandings in your rant.

Either accept the $1495 shipping as part of the deal, negotiate $1495 more for your trade in to negate the cost, or go buy something else that has a shipping charge more palatable to you.
 

clippedwings

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Here is some old guys opinion, old guy being me. Please know that all those cars sitting in Dealers lots do not belong to the dealers…. They belong to a bank. Most, if not all those cars were bought from the manufacturer with a bank loan. Every so often a surprise audit is done by the bank and cars on the lot are counted, the totals are compared to the outstanding loans and they must match up. If there are missing cars, the bank knows 1 of 2 things happened.
1. The car was stolen.
2. Most probably the dealer sold the car and didn’t tell the bank so all the money stays at the dealership, until they get around to paying the bank for that particular car.
being former LE, bank audit day is a pain because the dealer doesn’t want anyone to know about the money deal so they may try to claim the missing cars are stolen until they can get the paperwork done for the sale to the bank, with the price of cars, trucks etc a few weeks of thousands in your account adds up to a nice profit.
you can see why my dealer, who dictates $500 down when you place your order, and claims to have placed over a thousand orders is sitting pretty. They know it ‘s going to be a long time before I get my vehicle, and just keep putting me off with continued promises. I signed up several months ago under the impression that my vehicle would come fairly soon. The reality - Eco-Boost or not, is that I probably will be lucky to see a vehicle inside of six months. Doesn’t hurt their bottom line to be sitting on a lot of peoples money for free. The longer, the better.
 

jtpc2021

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The $1495 shipping charge is excessive!

A car carrier holds 9 vehicles. I seriously doubt it costs anywhere near $13,455 to ship even the furthest distance in the lower 48 from manufacturing plant. We should be able to negotiate a much lower shipping price!
Keep in mind it has to ship by Rail and Truck from Mexico.
The comparable Santa Cruz that is made in the US is $1225 to ship.

Trust me, railroads and trucking costs aren’t getting cheaper these days.
 

snowcatxx87

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No it's not.

It includes carrier, rail load, carrier to dealer, and PDI by the store, to take the transport blocks out, update software, inspection and road test for safety.

Stop making threads just to make threads.
 

MDRN

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This fee is not just a trailer from the border to the dealer. It's also transport from the plant in Mexico, the tariff on crossing the border, the exorbitant truck driver fees since they aren't in a surplus right now, the list goes on and on why it's more than in the past.

But more to the rest of the comments, it's a factory charge. You can't get past that. IF it makes you feel better a Santa Cruz shipping & destination is $1225 so it's a universal.
 

huunvubu

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Ford DESTINATION CHARGES for these MY2021 and MY2022 Vehicles:

2021 EcoSport $1245
2021 Escape $1245
2022 Bronco Sport $1495
2021 Bronco $1495
2022 Maverick $1495
2022 Explorer $1295
2022 Edge $1245
2021 Expedition $1695
2021 Ranger $1195
2022 Transit Connect $1395
2021 F-150 $1695
2022 Super Duty $1695
2021 Transit $1695

13 Vehicles: Average DESTINATION CHARGE $1452.69
2022 Maverick at $1495 is only 2.9% above average

I expect that for MY2023 Vehicles that the DESTINATION CHARGE will increase even more.

Are destination charges negotiable?

What is this fee and can it be negotiated?

A "destination charge" is a fee that the manufacturer charges to deliver a vehicle from the factory to the dealership, and that is passed on by the dealer to the consumer; it is not included in the MSRP of the vehicle. Destination charges are typically not negotiable. In fact, even customers who arrange to take delivery of a vehicle at the factory are expected to pay the full destination charge.

The destination charge is the same for a particular vehicle no matter where the dealership is located (with the exception of Alaska and Hawaii in some instances). That's because manufacturers average the cost to ship a vehicle from the factory to the furthest dealership with the cost to ship a vehicle from the factory to the closest dealership. Some manufacturers do this for each model; others average costs across an entire make.

Destination charges are taxable, so the destination charge is added to the price of the vehicle before sales tax is calculated.


Maverick Destination Charge.JPG
 

TSAINTS1115

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Ford DESTINATION CHARGES for these MY2021 and MY2022 Vehicles:

2021 EcoSport $1245
2021 Escape $1245
2022 Bronco Sport $1495
2021 Bronco $1495
2022 Maverick $1495
2022 Explorer $1295
2022 Edge $1245
2021 Expedition $1695
2021 Ranger $1195
2022 Transit Connect $1395
2021 F-150 $1695
2022 Super Duty $1695
2021 Transit $1695

13 Vehicles: Average DESTINATION CHARGE $1452.69
2022 Maverick at $1495 is only 2.9% above average

I expect that for MY2023 Vehicles that the DESTINATION CHARGE will increase even more.

Are destination charges negotiable?

What is this fee and can it be negotiated?

A "destination charge" is a fee that the manufacturer charges to deliver a vehicle from the factory to the dealership, and that is passed on by the dealer to the consumer; it is not included in the MSRP of the vehicle. Destination charges are typically not negotiable. In fact, even customers who arrange to take delivery of a vehicle at the factory are expected to pay the full destination charge.

The destination charge is the same for a particular vehicle no matter where the dealership is located (with the exception of Alaska and Hawaii in some instances). That's because manufacturers average the cost to ship a vehicle from the factory to the furthest dealership with the cost to ship a vehicle from the factory to the closest dealership. Some manufacturers do this for each model; others average costs across an entire make.

Destination charges are taxable, so the destination charge is added to the price of the vehicle before sales tax is calculated.


Maverick Destination Charge.JPG
Don't screw up this thread with facts! :ROFLMAO:
 

pxpaulx

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Seekins Ford in Fairbanks AK has a destination charge of $1195 for a Ranger. My local dealer in Perry GA charges the same $1195 destination charge for a Ranger.

There you have it.
It does appear to vary by model, and of course year over year. a 2021 F-150 looks to have a charge of $1,695 while a 2021 escape is $1,245. A 2020 transit van is a $1,495 and the bronco sport shares the same cost at $1,495.

2020 rangers are $1,195. The fact they are produced domestically, meaning at least some of the factory inventory does not have to travel by rail, and there are no import/customs requirements is probably why there is a lower overall cost for a ranger.

At the end of the day it isn't about one vehicle's end to end factory to dealer cost to ship - it is about the entire inventory for each particular model, as someone mentioned there are multiple points of transport industry touching our trucks between the factory and dealer - add to that customs requirements and the net result is the cost that is set (which, the only reason isn't baked into the overall cost is because it is gov't mandated to be displayed as a separate cost on the sticker details).
 

DryHeat

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It's interesting to see how these discussions progress. Apparently uniform high destination charges are the government's fault, the union's fault, the railroad's fault, and the dealer's fault (this last one because the dealer gets charged the actual cost and pockets the rest.).

The government's role in this is actually pretty limited. Since the 1950s it has mandated that destination change be disclosed separately on the Monroney label (window sticker). The manufacturers (not the government) decided by the 70s to go with uniform destination charges -- although some still allow some variance. As for the dealer (at least on the invoices I have seen) the invoice and window sticker destination charges are the same.

As for where the railroads and the unions fit into this, who knows?

More info here: What is the Destination Charge? | The Daily Drive | Consumer Guide® The Daily Drive | Consumer Guide®
 
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