Destination charges

I just learned over at Infiniti forum G35Driver that Infiniti has bumped destination charges by $15. While $15 isn’t much in itself, it’s just the latest in a long string of such bumps. Remember the story about the frog who sat in the pot while the water temperature was raised by one degree each minute? It’s kind of like that.

The frog in this case? Not so much the customer as the dealer. The attractive thing about destination charges for the manufacturer: the dealer doesn’t get a cent. I often come across car buyers asking whether the destination charge is “legit.” Well, if “legit” means “not open to negotiation,” then the destination charge is the most legit part of the purchase price. To my knowledge, no discount ever touches it. Even employees of the manufacturer pay the full amount.

Japanese and German manufacturers have been the leaders in raising these charges. The destination charge on an Infiniti will now be $715. Fifteen years ago, it was $385. The destination charges on BMWs have been about the same, in both cases. (BMW bumped its destination charges from $695 to $775 this month.) In constrast, the destination charge on a Cadillac went from $600 to $745.

In some cases, Detroit does lead the way.