Destination Charge / Freight
A non-negotiable manufacturer fee for shipping the car from factory to dealer. Set by manufacturer.
The destination charge (or "freight" or "delivery fee") is what the manufacturer charges to ship the vehicle from the factory or port to the dealer. It's set by the manufacturer, listed on the Monroney sticker, and IS legitimate — same charge whether you buy the car in Florida or Alaska. Typical destination charges: $1,200-$1,800. Trucks and full-size SUVs are usually $1,500+. The destination charge is non-negotiable but you should verify the dealer is charging the manufacturer's exact rate and not adding to it.
01How to check the destination charge on a quote
Find the window sticker on the exact car. That sticker, called the Monroney label, is required by federal law on new cars and lists the manufacturer's destination charge. The number on your quote should match it to the dollar.
If you are shopping before you have seen the car, ask the dealer to email a photo or PDF of the window sticker along with the itemized out-the-door price. Any honest store can do this in a minute.
02How to spot a second freight charge
The legitimate charge appears once. Watch for a second line with a similar name: dealer destination, freight surcharge, port handling, shipping and handling, inbound transportation, or delivery and handling. These are dealer charges dressed up to look like the manufacturer's.
Also check whether the destination charge got counted twice: once inside a quoted price that already includes it, and again as its own line. Ask the dealer to confirm in writing whether the selling price includes destination or not.
03Is the destination charge negotiable?
The line itself is not. The manufacturer bills it to the dealer, and the dealer passes it through. But the total price of the car still is. A dealer discount off MSRP is a discount, whether or not destination is part of the number. Focus on the out-the-door total, not whether one specific line moved.
On a used car there is no destination charge at all. The car has already been delivered once. If a used car quote shows destination or freight, ask for it to be removed.
04A worked example
Say the window sticker lists a $1,395 destination charge, and the quote shows Destination $1,395 and, two lines down, Freight and Handling $599. The first line is correct. The second is a dealer charge. Reply by email: the destination charge on the Monroney label is $1,395 and that is the only freight charge I will pay. Please remove the $599 Freight and Handling line and resend the out-the-door quote. That saves $599 plus any sales tax charged on it.
05Questions buyers ask
Why does the destination charge vary by model?
Manufacturers set it, and it can differ by model, size, and brand. For a given model it is generally the same across the country, which is why the sticker number is the one to check against.
Is destination included in a lease?
Yes. It is part of the vehicle price used to set your capitalized cost. Make sure it is counted once and that no second freight line is added. See lease vs buy for how lease costs are built.
What if the dealer says the extra freight line is for a dealer-ordered car?
Factory orders ship the same way as stock cars. The manufacturer's destination charge covers it. Treat any extra freight line like a dealer prep fee and ask for it to come off.
Have a dealer quote with this on it? Check it with the free dealer fee checker: every line comes back junk, negotiable or legit, with what it really costs.