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The Secret Way Automakers SCREW Customers | Episode 1067

The Secret Way Automakers SCREW Customers | Episode 1067

CarEdge Live May 08, 2026 29 min
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About this episode

Destination charges take center stage as CarEdge Live argues automakers quietly inflate the price of new cars through fees that show up on the Monroney label. The hosts explain what “destination and handling” means, how line items can be renamed or duplicated in out-the-door quotes, and why these charges can be thousands of dollars. They compare brand examples (Mercedes-Benz vs. Alfa Romeo, plus Ford/GMC/Lincoln figures), discuss negotiation and taxes, and connect destination fees to residual value and deal timing.

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Technical Too Afraid to Ask
Car

Toyota RAV4

"...nner. Next, we're heading to the hot springs in a RAV4. And finally, park your tundras and Tacomas aroun..."

The Toyota RAV4 is a compact SUV. It’s made for normal daily driving but can also handle weekend trips. The podcast mentions it while describing a trip to hot springs.

Car

Toyota Tundra

"...the hot springs in a RAV4. And finally, park your tundras and Tacomas around the campfire because we're roa..."

The Toyota Tundra is a large pickup truck. People use it for carrying things and towing, and it’s built to handle rougher trips. The podcast mentions it because it’s the kind of truck you might bring on an outdoor weekend.

Car

Toyota Tacoma

"...ngs in a RAV4. And finally, park your tundras and Tacomas around the campfire because we're roasting marshm..."

The Toyota Tacoma is a medium-size pickup truck. It’s designed to help you carry stuff and handle trips that go beyond normal city driving. The podcast brings it up as one of the trucks people might bring for camping.

Term

destination charges

"Now, Dad, the big story I want to talk about this morning is a secret in the auto industry [153.5s] that we are going to turn on its head. [161.0s] We're going to be talking about today, Dad, destination charges. [164.7s] We're going to review the latest data from Consumer Reports."

A destination charge is money added to a new car’s price to pay for getting the car from the factory to the dealership. It’s a line item you’ll often see when you’re shopping for a new car.

Company

Consumer Reports

"[164.7s] We're going to review the latest data from Consumer Reports. [168.1s] Destination charges are the secret way automakers are screwing car shoppers in the United States [174.9s] of America."

Consumer Reports is a group that evaluates products and publishes results to help people make better buying decisions. Here, they’re cited as the source of data for the discussion.

Brand

Datsun

"and two, [182.8s] what was the destination charge on the cars you were selling back at Datsun, [186.6s] whatever the heck you were selling in the 1970s?"

Datsun was an older car brand from Japan that eventually became part of Nissan. The speaker is using it to talk about what destination charges were like back in the 1970s.

Term

Monroney label

"[189.4s] 12 cents. [191.0s] What was the destination fee? [193.5s] Destination charge is what the manufacturer charges on the Monroney label. [200.3s] Which is a Windows sticker."

The Monroney label is the official sticker on a new car that shows the price breakdown. It helps you see what you’re being charged for before you buy.

Term

Windows sticker

"[193.5s] Destination charge is what the manufacturer charges on the Monroney label. [200.3s] Which is a Windows sticker. [201.8s] The Windows sticker, and it's the same for every dealer, whether they're [206.8s] two minutes from the factory or 3,000 miles from the factory."

The window sticker is the paper on the car that lists the price and what’s included. It’s meant to be the same information no matter which dealer you buy from.

Term

destination and handling

"[206.8s] two minutes from the factory or 3,000 miles from the factory. [212.3s] But the destination charge is, it'll say, destination and handling. [217.7s] And when I started, what was it? 1200 dollars, maybe?"

On the sticker, the destination fee may show up as “destination and handling.” It’s basically the cost to get the car to the dealer plus some extra processing costs.

Term

inland freight charge

"[286.8s] Wait a second. That was in 2005 on an MDX? 500 and 75 bucks? [294.1s] Occasionally, I've seen even on Kia, Dad inland freight charge. [298.0s] So just to be clear here, these have different names. [300.5s] Yes, they show up. They show up on the Windows sticker."

An inland freight charge is extra money for shipping the car within the country. The point here is that it can show up as a separate line item, not just one simple “destination” fee.

Term

handling charge

"if they add their own destination fee, destination charge, handling charge, that is separate from what's shown up on the manufacturer's Windows sticker."

A handling charge is an extra fee someone adds during the buying process, usually for paperwork or processing. The hosts are saying it can be tacked on separately from the official sticker price. So the final price can be higher than you’d think.

Car

Acura MDX

"When you showed that Windows sticker for a 2005 MDX, okay, and it was $575, that was, excuse me, 21 years ago, 21 years."

The Acura MDX is a family SUV with room for passengers and cargo. In this discussion, it’s mentioned because the hosts compare an older MDX window-sticker price to a newer one to show how destination fees have increased. It’s a real-world example of how costs add up.

Term

destination fee

"Some vehicles that are produced in the United States get a $2,500 or more destination fee, and they only travel 15 miles from the final assembly plant to the local dealer. ... So if you need to charge on the Windows sticker $2,895, why don't you tell the truth and say it's really $1,000..."

A destination fee is money added to the car price for shipping it from the factory to the dealer. Even though dealers are sometimes close to the factory and sometimes far away, the fee is often treated like a standard charge.

Term

trucking industry

"Oh, let's say you're working with the trucking industry and you say, oh, we're expecting to produce 1.2 million vehicles in the United States that need to get shipped."

The “trucking industry” refers to commercial freight carriers that move vehicles from factories to ports, railheads, and dealerships. In the segment, it’s used to frame how shipping costs should scale with volume and negotiated rates.

Term

invoice

"Now, the difference is that this extra profit goes directly to the manufacturer and the dealer doesn't participate in that at all because, well, on the invoice, the dealer gets charged the same destination charge as the ultimate customer."

In this context, the “invoice” is the dealer’s paperwork showing what the dealer is charged by the manufacturer for the car, including line items like destination. The host’s point is that dealers may be billed the same destination charge as the end customer, even when the real shipping cost is lower.

Concept

manufacturer year over year increases

"Yeah, I love this. This is from Jerry. Love to see you here, Jerry. Manufacturer year over year increases were typically $50 to $100 at most for the destination"

“Year over year increases” means comparing a metric (like fees or pricing) from one year to the next to see how much it has risen. The host uses it to suggest destination-related charges have been creeping upward over time.

Term

out-the-door price

"So this is legitimately something that people need to watch out for on out-the-door price quotes. You need to watch out for two destination charges."

The out-the-door price is the final price you’ll actually pay for the car. It includes the extra fees and taxes, not just the sticker price. This is why you should check that destination fees aren’t added more than once.

Brand

Mercedes-Benz

"But dad, the dealers that have the, excuse me, the manufacturers that have the lowest destination charges, it's actually Mercedes-Benz. Wow. Mercedes-Benz only, you cannot believe I'm saying only, only charges $1,150 for a destination charge."

Mercedes-Benz is the brand the host says has one of the lowest destination fees right now. They’re using it as an example of how these fees can change your final price. The takeaway is to compare what each brand charges for getting the car to the dealer.

Brand

BMW

"I mean, just nuts. So how much is BMW? Do you think that that is a world war about the start?"

BMW is mentioned as another brand the hosts are comparing for destination fees. Even though the exact number isn’t given here, it’s part of the same message: check the final price breakdown. Different brands can charge different transport fees.

Car

Honda Civic

"...at $1,195 on the Integra, same for Honda with the Civic and Prelude, Kia with the K4 and K5, $1,195 Nissa..."

The Honda Civic is a small, everyday car. It’s made for commuting and general driving, and it’s available in different versions. The podcast mentions it because it’s being compared on price with a few other models.

Car

Acura Integra

"...heir cars and SUVs. Acura is now at $1,195 on the Integra, same for Honda with the Civic and Prelude, Kia w..."

The Acura Integra is a compact luxury car. It’s meant for drivers who want a nicer interior and a more engaging driving feel than a basic car. The podcast brings it up because it’s included in a price comparison list.

Car

Honda Prelude

"...on the Integra, same for Honda with the Civic and Prelude, Kia with the K4 and K5, $1,195 Nissan, $1,195 Su..."

The Honda Prelude is a sporty two-door car. It’s generally aimed at drivers who want a more fun driving feel than a basic commuter car. In the podcast, it’s mentioned because it’s included in a price comparison list.

Car

Ford F-Series

"You want a Ford F-Series pickup truck, Dad? $2,595... The story is, Ford charging $2,600 as a destination fee on the F-Series pickup trucks."

The Ford F-Series is Ford’s main line of pickup trucks. In this segment, it’s used as an example of a brand charging a high destination fee.

Car

GMC Sierra EV

"Ford charging $2,600 as a destination fee on the F-Series pickup trucks. GMC charging $2,600 on the Sierra EV."

The GMC Sierra EV is GMC’s electric pickup. The hosts say it also comes with a high destination charge—$2,600 in their example.

Car

Lincoln Navigator

"GMC charging $2,600 on the Sierra EV. Lincoln charging $2,600 on the Navigator."

The Lincoln Navigator is a big luxury SUV. In this segment, the hosts say Lincoln adds a $2,600 destination charge on it.

Car

Hummer EV

"the GMC up there at $2,700 for the Hummer EV. This is just price and essential."

The Hummer EV is a big electric vehicle from GMC. Because it’s so heavy, it costs more to move around, but the hosts argue the added “destination charge” is still being marked up too much.

Car

GMC Sierra 1,500

"We've got $2,795, $2,800 debt from GMC for the Sierra 1,500, $2,500,"

The GMC Sierra 1500 is a big pickup truck. In this segment, it’s part of a list showing how much extra money the host says GMC adds for shipping to the dealer.

Car

GMC Yukon

"$2,500, and $3,500 Yukon and Yukon XL."

The GMC Yukon is a large SUV. The hosts mention it because they’re comparing how much extra shipping/destination fees add across different GMC vehicles.

Car

Chevrolet Silverado

"...ticker price 4%. Okay. Like Chevy, $2,800 for the Silverado 1500, $2,500, $3,500 suburban in Tahoe, Cadillac,..."

The Chevrolet Silverado 1500 is a large pickup truck. It’s built to carry loads and tow trailers, and it’s also used for regular driving. The podcast mentions it because it’s part of a list of vehicles with a quoted price.

Car

Chevrolet Suburban

"...vy, $2,800 for the Silverado 1500, $2,500, $3,500 suburban in Tahoe, Cadillac, you are up to $2,895 on the E..."

The Chevrolet Suburban is a large SUV that can fit more people than a typical car. It’s meant for family trips and everyday use, and it can also tow. The podcast brings it up because it’s included in a price comparison.

Car

Chevrolet Tahoe

"...or the Silverado 1500, $2,500, $3,500 suburban in Tahoe, Cadillac, you are up to $2,895 on the Escalade a..."

The Chevrolet Tahoe is a big SUV made to carry passengers comfortably. It’s useful for family trips and can handle towing when equipped for it. The podcast mentions it because it’s part of a list of vehicles with specific pricing.

Car

Cadillac Escalade

"up to $2,895 on the Escalade and Escalade IQ."

The Cadillac Escalade is a large luxury SUV. The host brings it up because they’re comparing destination charges across different brands and price tiers.

Term

sticker price

"and say, no more. I'm mad as hell and I'm not paying a $2,900 destination charge to get that vehicle from wherever you build it to my local dealership."

Sticker price is the number you see on the car’s price tag/window sticker. The host is saying the final cost can jump a lot once extra fees like destination charges are added.

Car

Chevy Silverado 1500

"Yes. If I'm in the market for a Chevy Silverado 1500 and I want to buy a new one from a Chevy dealer, do I have to pay the $2,795 destination charge? It's part of the MSRP."

The Chevy Silverado 1500 is a popular full-size pickup. In this segment, it’s just the example truck they use to explain how dealer pricing works, especially the destination fee.

Term

incentives

"...between incentives and what dealers are typically willing to negotiate price-wise off of the MSRP of a vehicle."

Incentives are deals from the automaker or dealer that can lower what you pay. The hosts say you can use incentives, but the destination fee is still included in the sticker price.

Term

window sticker

"...It is the last line item on a Monroni label on the window sticker. The last line item typically is destination, transportation, destination and handling... that's before the total."

The window sticker is the paper/label on a new car that shows the official price breakdown. They’re saying the destination fee is listed there and taxes are calculated on it too.

Term

factory installed options

"...It would almost be like for factory extras options that you think you're going to negotiate every line item on the MSRP, on the window sticker. You don't."

Factory installed options are features the car is built with. The hosts’ point is that these are already part of the sticker price, so you usually negotiate the overall price instead of each option separately.

Term

taxed

"If destination charges are not taxed, is that charge non-negotiable? They are taxed. It's part of the MSRP. It's part of the total window sticker price."

They’re saying the destination fee is not tax-free. Sales tax is calculated on it because it’s part of the car’s total sticker price.

Term

tariffs

"From David, our manufacturer is trying to recoup tariffs in their destination charge."

Tariffs are taxes the government adds to imported products. If car parts are imported, those taxes can raise costs, and companies may try to pass some of that cost to buyers.

Car

Ford Maverick

"Remembering the launch of the Maverick Advertise as below $20,000 starting price before the destination fee of $1,500."

The Ford Maverick is used to show how the advertised “starting price” can be misleading. The hosts point out that the destination fee gets added on top, so what you actually pay is higher than the headline number.

Car

Ford F-150 Lightning

"which is the same reason when they first announced the Lightning, they said that was going to be $39,995 because it's under $40,000."

The Ford F-150 Lightning is an electric truck. The hosts use it to show that automakers sometimes promise a price like “under $40,000,” but the final real-world cost often ends up higher once fees and costs change.

Concept

EV market rebound

"How long does demand in the new car market take to adjust to higher gas prices? Do you think the EV market will rebound based on current events?"

A rebound means EV sales start improving again after a slowdown. The discussion here is about what could bring buyers back—like fuel prices and incentives.

Concept

government subsidies

"I don't know that without the government subsidies, I don't know that gas prices can get high enough just yet to really substantially move the needle on EV sales just yet."

Government subsidies are discounts or credits from the government that make EVs cheaper to buy. The point here is that if those incentives go away, fewer people may buy EVs.

Term

residual value

"Even with terrible residuals, some of the bounced original destination fee makes it to the used price... Because the residual value is based off the total MSRP, not the base MSRP."

Residual value is what the car is expected to be worth later—often at the end of a lease. If the car’s “official price” is higher because of fees, that expected future value can go up too, which can ripple into used-car prices.

Term

0% financing

"we saw in the beginning of this year more manufacturers, 0% financing offers than we did in December of last year."

0% financing means you borrow the car money without paying interest. That can make the deal cheaper overall, and it can also change what discounts and prices you see at dealerships.

Concept

leftover

"If you were thinking to yourself, I'm going to wait for a leftover Dodge Charger Scat Pack. Yeah. I'm going to wait till the end of this year to pick that up."

“Leftover” means the dealership still has cars sitting unsold. Dealers often discount these near the end of the year to make room for new inventory.

Car

Dodge Charger Scat Pack

"We even saw yesterday on the show with Jared, for example. If you were thinking to yourself, I'm going to wait for a leftover Dodge Charger Scat Pack."

The Dodge Charger Scat Pack is a higher-performance version of the Charger. The hosts mention it as an example of a car people might wait to buy later in the year to try to get a discount.

Term

MSRP

"what was it, 30% off MSRP overnight because the manufacturer just decided that they were done."

MSRP is the “sticker price” the manufacturer lists for the car. The actual price you pay can be higher or lower once dealers and incentives get involved.

Concept

best time to buy a new car

"They just need to get rid of it at this point. When's the best time to buy a new car? I think you need to watch the market."

The “best time to buy” is when deals are strongest—usually when dealers have lots of cars to sell or manufacturers are offering bigger incentives. That’s when you’re more likely to get a lower price.

Term

depreciation rankings

"We work for you, not car dealers, to learn more. Back at caredge.com. You can use the car search. You can use our car buying service. We have all sorts of research tools like depreciation rankings, maintenance costs, insurance estimator, check what your vehicle's worth, and so much more."

Depreciation rankings compare how quickly different vehicles lose value over time. They help shoppers estimate future resale value and total cost of ownership, since faster depreciation generally means a bigger hit when you sell later.

Term

maintenance costs

"We have all sorts of research tools like depreciation rankings, maintenance costs, insurance estimator, check what your vehicle's worth, and so much more."

Maintenance costs are what you’ll likely spend to keep the car running over the years. It’s more than just the initial price—things like service visits and wear items add up.

Term

insurance estimator

"We have all sorts of research tools like depreciation rankings, maintenance costs, insurance estimator, check what your vehicle's worth, and so much more."

An insurance estimator helps you guess what your insurance might cost for a specific car. Since different cars can cost more or less to insure, it’s a useful comparison tool.

Term

vehicle's worth

"insurance estimator, check what your vehicle's worth, and so much more. Dealer reviews as well, dad."

“Vehicle’s worth” means what the car is likely worth in today’s market. Knowing that helps you judge whether the price you’re being offered is actually a good deal.

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