Why Are Destination Fees So High?
The Truth About Cars
The Truth About Cars Mar 13, 2026
Why Are Destination Fees So High?

Why Are Destination Fees So High?

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Why Are Destination Fees So High?
Term

destination fees

Destination fees are extra costs you pay when buying a new car. They cover getting the car from where it's made to the dealer where you buy it.

Mazda Cx5
Car

Mazda Cx5

The Mazda CX-5 is a small SUV made by Mazda that is good for families and everyday use. It drives well and has a nice inside with comfortable seats. It has become more expensive over the years because more people want to buy it.

Term

Monroney

A Monroney sticker is the official sticker you see on new cars in the US. It shows the car's price, extra features, and fees so you know how much the car really costs.

Dodge Charger
Car

Dodge Charger

The 1973 Dodge Charger is an old, strong car made in America that many car fans like because it has a big engine and cool looks.

Term

dealer prep fee

Dealers sometimes charge a fee to get a new car ready for you. This fee pays for things like cleaning the car and checking it before you drive it home.

Concept

SUV

An SUV is a bigger type of car that can carry more people and sometimes drive off-road. Because they are bigger, they take up more space when being shipped.

Term

car carrier

A car carrier is a big truck that carries many cars at once from where they are made to the car dealer.

Concept

pickup truck

A pickup truck is a type of vehicle with a cabin for people and a flat open area in the back to carry things. They are usually bigger than cars and can cost more to ship.

Term

MSRP

MSRP is the price the car maker says a new car should cost. It doesn't usually include extra fees like shipping or dealer costs.

Term

negotiation

Negotiation means talking with the seller to try to get a better price or deal when buying a car. Unlike buying things like TVs, car prices can often be changed by asking.

Term

fixed price

Fixed price means the price you see is the price you pay, and you usually can't change it. This is common for things like TVs or refrigerators.

Concept

car buying cycle

People usually buy a new car every five years or so. This is called the car buying cycle, and it affects how often you shop for cars.

Brand

General Motors

General Motors, or GM, is a big car company in the U.S. that makes cars and trucks under brands like Chevrolet and Cadillac. People talk about GM when discussing car prices and fees.

Brand

Ford

Ford is a big car company from the United States that makes many kinds of cars and trucks. People often talk about Ford when discussing car prices and extra fees.

Brand

Alfa Romeo

Alfa Romeo is a car brand from Italy that makes sporty and fancy cars. Because their cars are made in other countries, it can cost more to get them to dealers.

Brand

Stellantis

Stellantis is a big car company made by joining two other companies. It owns many car brands like Alfa Romeo and Jeep. They often charge higher fees to get cars to dealers.

Brand

Toyota

Toyota is a big car company from Japan that makes cars known for being reliable and good on gas.

Brand

Honda

Honda is a company from Japan that makes cars and motorcycles. Their cars are known for being reliable and easy to drive.

Brand

BMW

BMW is a car company from Germany that makes cars known for being fun to drive and comfortable. They make many types of cars including sporty ones and family SUVs.

Brand

Mercedes-Benz

Mercedes-Benz is a famous car company from Germany that makes fancy and comfortable cars and SUVs. People often think of it as a brand that builds high-quality and luxurious vehicles.

Concept

rail shipping

Rail shipping means moving cars on trains to get them from the factory to the place where they will be sold. Sometimes it's faster or easier than using trucks, especially for long trips.

Term

destination charges

Destination charges are extra costs added to a new car's price to pay for moving the car from where it was made to the dealership. The farther the car has to travel, the higher this fee can be.

Concept

tariffs

Tariffs are extra taxes added when cars are brought into a country from somewhere else. These taxes can make cars more expensive to buy.

Company

Consumer Reports

Consumer Reports is a group that tests and reviews products, like cars, to help people know which ones are good before they buy.

Company

eBay

eBay is a website where people can buy and sell things, including cars and car parts, from all over the world.

Brand

Aston Martin

Aston Martin is a fancy car company from Britain that makes fast and stylish sports cars.

Term

pressure washer

A pressure washer is a tool that sprays water very fast and strong to clean things like cars and dirt. It's stronger than just using a normal garden hose and helps get things really clean.

Term

psi

PSI means how strong the water comes out of the pressure washer. Higher PSI means the water sprays harder and cleans better.

Concept

IndyCar

IndyCar is a type of car racing where drivers race very fast cars that look different from NASCAR cars. The cars have wheels that stick out and race on different types of tracks.

Concept

NASCAR

NASCAR is a type of car racing where drivers race special cars on oval tracks. It's very popular in America and lots of people watch it on TV.

Company

Goodyear

Goodyear makes the special tires that NASCAR cars use during races. These tires are built to handle very fast speeds and tough driving.

Term

tire pressure

Tire pressure means how much air is inside a tire. Racing teams change this to make the car handle better or make the tires last longer.

Term

rotor

A rotor is a metal disc that helps slow down the car when the brakes are applied. The brake pads squeeze this disc to stop the car.

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