New car destination fees explained 

Mine has a fancy cappuccino/espresso machine. Their prices for service are competitive so I sit in a comfy leather chair and binge on coffee while the oil gets changed.

Brand new?

@@MrWiseinheart Brand new. The only time I bought the car at MSRP was my Honda Civic Type R. Since the dealerships were selling that with 5-10k markups or force you to buy their dealer install accessories. I consider that a win.

No, not at all.

@@zuti071 Then it can be added. Maybe if the government said starting in 2025 the acquisition costs must be in msrp, but I think then they'll hide it by doubling the document fees depending on state laws. In NY it is capped at $75 vs NJ commonly it is $600.

It doesn't matter. All fees are just rolled in the price of the car.

@@MBisFrenchy Europe has something that nobody in North America has ever heard of. It's called "consumer protection legislation" and these sorts of games just aren't allowed. If you're advertising a price, it has to be THE price.

@@Green__one Europe definitely is better at protecting consumers. Especially with the shoddy tesla paint.

I agree but only problem is that used car prices have been getting ludicrous lately. So annoying.

That's not good advice. Actually, new cars are generally a better value. You get a warranty, you get lower financing, you get consumer protections. And when you consider how expensive used cars are, you might wonder if buy new is better in the long run. In some cases, it can actually be cheaper to buy new.

@@spamfried894 Maybe in bizzaro world

@@seankenney7756 It's not. Try to buy new Tacoma right now, and then price a slightly used Tacoma. Tacoma have the best resale value in the industry. You'll find that the new ones are often cheaper than the used. It sounds crazy, but that's how it is. It's never wise to just assume used in always cheaper. Often, new cars are incentivized and discounted, and financing is almost always cheaper. At the moment, Bank of America's new car rate is 2.39%, while used is 2.69%. It's actually cheaper to finance a new car.

@@jd1172 New vs used is apples & oranges. "Used" can mean 1 year or 5 or 10. Many older cars, like Toyotas, are very reliable even after 10 years. My car is from 2005 and I've had no major issues. I've never spent more than $12k for a car that would have been $25k< when it was new, which is a lot of money saved, especially when you add the interest you pay on larger car loans. Feel free to "save money" by buying brand new cars, I'll keep buying used.

nope...wrong...it in NOT included in the MSRP

I wish I hadn't bought through Tesla. Worst purchasing experience of my life. I bought a used Tesla through them that was already on the lot, and it still took 3 months to get it from them, with no updates at all, and then after 3 months when they were finally ready they wanted everything finalized with less than 3 hours notice including a wire transfer for the full 6 figure purchase price, all while I was at work. Then there was the fight about missing accessories that were clearly labelled on the paperwork, and the fact that ever since that day they've refused to honour the warranty or the service plan that I paid for at the time. Best car I've ever owned. Worst company I've ever dealt with.

They charge the same fees....

A dealer is a middle man. Tesla doesn’t have dealerships, they sell direct. Tesla has it’s own stores.

@@superhollowfied906 Tesla charges the same fees as shown in the video.

@@MBisFrenchy I didn’t say anything about that. The guy above said Tesla has dealerships and I corrected that.

@@EpicDrew15 I could care less

Cooley, don't give them ideas.

Manufacturers charge for gas. It's part of the cost in the MSRP

I’ve learned to take cooleys statements with a grain a salt after he tried explaining American turn signals.

@@EpicDrew15 I'm in California. No point in wasting my time hiding stuff.

Have them to take the destination and delivery fee off the OTD after you hit them on the bottom line and have erased all their garbage fees.

@@XX-166 When we did out the door pricing it was true out the door not a penny more unless they wanted to add maintenance package, extended warranty, accessories, or other stuff. In terms of fees all included in all purchase. This is included for paying cash, check, or financing it. When doing final paperwork we go by line by line and define every meaning. We define what the word rebate means and where the rebate money came from and how its applied. We define the meaning of dealership discount. We define the meaning of tax and how its broken down. We ensured it was clear. To be clear I'm not defending dealerships some corner lots at say Mike's Auto lot will add bs fees. Some big dealerships chains with name brands add a stupid finance charge to just finance with a manufactures official finance program. All of that crap hidden in the fine print. Must be military, must have current lease, must own 2006 or newer competitive brand. My best advice is to read Yelp and Google reviews Finance charge if you finance it. State tax DMV Document fee Tire fee but that was $8

@@OneManOnFire document fee is b.s. as well as the destination and delivery which can be taken off the total price of the deal if they want a sale, if not walk to the next dealer that will. There are some garbage stealerships out there that will only be allowed to pull their b.s. on an uninformed buyer who talks wayyyy too much and who falls for the usual nonsense training lines that are used on customers who then lose control of the deal.

I went to a dealership and they told me because it was out of state (an 1hour from where I live), that I couldn’t drive the vehicle; I would have to pay $250 for destination fee. And they even said “it was the law”, which is funny cause I didn’t find anything regarding that.

That’s my thought! There’s no separate shipping charge when I buy my groceries

There is a crash test fee, but it's just rolled into the price of the car. Imagine if they broke down every single cost incurred, you would go nuts trying to understand it all.

@@AkioWasRight Yes. But that was his point in the video. All fees should be rolled into the price of the car. Not added after you decide to buy.

@@usaverageguy Yes, and my point is that it doesn't matter, because their cost isn't going to change, regardless of whether they itemizing or not. You will always pay for something, whether you're aware or not. Also, destination isn't added once you decide to buy the car, unless you decide before actually looking at the car you're buying. Destination is clearly posted on every car's window sticker and is included in the total MSRP. One additional point, mind you, market adjustments aren't rolled into the price either. If a car is advertised at $30,000 MSRP, it could be less in person, which often it is. It's all sort of a reverse psychology, which is a marketing tactic. If they can get you to believe a car is mountingly expensive, they can play the numbers until you believe a car is a good deal, by slashing fees and giving your incentives. In reality, there's always a bottom line, but buyers are easily distracted and can be easily caught up in sales tactics.

@@AkioWasRight You will not find the Total MSRP listed on any website. Where most people shop cars today.

@@usaverageguy That's not true at all. As we speak, I'm literally looking at Ford's build page, and it shows $1,695 destination for an F-150, included in the total MSRP.

The MSRP price used to be regional decades ago, so it's not a novel idea.

Tesla sells direct and they still put destination fee. That’s what Cooley was talking about

@@EpicDrew15 Based on my albeit limited understanding of automotive retailing law, I can only assume that state dealer associations lobby hard to their respective governments to keep things that way, and also because of the way automotive sales are taxed, dealers can hold a giant bag of tax cash over lawmakers as an incentive to keep things the way they are.

The problem with getting rid of dealerships is that you destroy a whole lot of deep support network. And no I don't work in that business, I'm just objective and looking at the issue with a broader perspective. However, I don't like the state laws that institutionalize them.

@@AzathothsAlarmClock The problem in a nutshell is the lack of consumer choice which has been enabled by bad state legislation. So once again it is improper use of government that supports cronyism. You have to attack the people in government who are essentially enabling the holding of consumers as hostages for the crime of wanting a new car.

The direct to dealer model is ultimately more expensive, because it eliminates area competition and gives too much control to manufacturers, allowing them to fix pricing. With a dealer model, the dealer competes at a fine level. It's actually so competitive, dealers often don't even make money selling cars, they make money selling you services and accessories.

You mean Doc fee? that’s $504 in Massachusetts.