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Corvette Today Podcast: TONS OF NEWS THIS WEEK

We've been doing Corvette news & headlines podcasts on CORVETTE TODAY since September 2020. I don't remember ever doing a news & headlines podcast with this much critical information packed into one podcast! https://podcasts.adorilabs.com/show/...ppfrkBCyZstwdl. This is a "must listen" to podcast. Here are a few of the topics covered in this episode....

1. Chevrolet confirms the introduction this Fall of the 2023 C8 Z06 with a new video release-and it sounds like a Ferrari
2. Corvette dominates sales in Q2 2021
3. Chevy dealerships have received their first 2022 C8 allocations
4. Callaway looks ahead to 2022 and the Callaway C8 Corvette
5. Right-hand drive C8 is revealed at the Goodwood Festival of Speed in the UK
6. New GT-3 spec C8.R expected in 2024
7. California will start failing cars with tuned ECU’s during smog checks
8. The National Corvette Museum delivers their 14,000th Corvette
9. A couple exchanges wedding vows before taking delivery of their C8 at the NCM
10. "Life in the Fast Lane" by The Eagles is a story of cocaine and a fast Corvette
11. Sigala Designs shows off a completed widebody kit for the C8
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GM Is Being Sued Over Destination Charges

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  • GM Is Being Sued Over Destination Charges

    GM Is Being Sued Over Destination Charges

    https://jalopnik.com/gm-is-being-sue...ges-1847027445

    Destination charges have been rising industry wide. No one knows why. Automakers are aware of it as well. It’s why they advertise vehicle MSRP’s without them. And the charges vary between vehicles and make no sense. A basic Cadillac CT4 has a $1,195 destination charge while a CT4-V Blackwing has a $995 destination charge. Could it be greed? Apparently, some customers think so, as Car Complaints and GM Authority report a class action suit has been filed against GM over the charges.

    Destination fees generally range from $995 to about $1,700 and vary model by model, as TrueCar notes, but don’t vary depending on the distance. For example, a destination fee for a buyer living near the BMW plant in Spartanburg, South Carolina would be the same as a buyer of the same model two thousand miles away. Automakers claim they don’t make a profit.


    In this suit, however, filed in the Southern District of California, the plaintiffs have alleged that GM makes a profit off of the charges and that GM “deceives customers into paying far more than the actual cost of vehicle delivery.” All of this is over a grand or two; California plaintiff Robert Romoff paid a $1,195 destination charge on a 2021 Chevy Equinox and New Jersey plaintiff Joe Siciliano paid a $995 destination charge on a 2019 Cadillac Escalade. Car Complaints quotes the suit:
    “[A] destination fee is generally understood in the automotive industry to reflect the manufacturer’s average cost of delivering one of its vehicles to a dealership. That destination fee is charged to the dealer and passed on to the purchaser or lessee of that vehicle. Consumers similarly have the expectation that they are covering an automotive manufacturer’s cost for the delivery of the manufacturer’s vehicles when paying the “destination fee” as part of their new-vehicle lease or purchase.”
    Both plaintiffs claim they did not know that GM makes a profit from its destination charges, and argue they were misled.

    The suit essentially claims destination charges are bull**** and have little to do with anything involving the transportation of the vehicle. GM hasn’t responded to the suit. But the fact that charges are the same for a person living 30 miles from the factory being the same for someone living on the other side of the country suggests it’s all profits for automakers.
    Delivered 5/29!: Scarlet Fever 2021 2LT HTC, Red Mist Metallic Tintcoat, two-tone Natural w/ suede inserts, Mag Ride, Performance Exhaust

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  • #2
    I was under the impression that destination charges cover more than just the actual delivery of the car to the dealer. They also have to prepare the car for the customer, something that varies from model to model. On the C8 there's an extensive PDI checklist, which I'm sure someone on here can post, that details everything from removing the travel wrap to changing the components from "transport" mode. Adding the brake ducts, adding any extra dealer installed accessories like engine covers or high wings...
    these all take man hours that the dealer has to pay for.
    Now it seems a bit steep for some compared to others but maybe there's profit baked in there too? I certainly don't expect loss to be the norm when they calculate that price.
    We all know that cost when we order the car so I don't see where anyone can complain about it being a surprise, much less suing over it.

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    • #3
      You know that no one from Alaska is suing them. lol
      Murray - Uxbridge, Ontario, Canada
      2020 Torch red Stingray coupe, Adrenaline red 2LT Q8Q E60 NPP
      Deposit: July 30/19, 1100: Sept 15/19, 3000: Feb 14/20, TPW WAS May 18, August 24 and lastly July 27,
      3300: July 15, 3400: July 22, 3800: July 30, 4200: Aug 06, 5000: Aug 7, 6000: Aug 12!

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      • #4
        The Federal government actually mandates these charges. The Subaru dealer nearest the factory in Lafayette, Indiana had destination charges on $795.00, and it was the same charge in Florida or Alaska. The regulation states that everyone must pay the same charge, so these fees are an average of delivery costs, and yes, some people pay more than they should and some pay considerably less...

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        • #5
          Originally posted by Murray20c8 View Post
          You know that no one from Alaska is suing them. lol
          Or Hawaii!!
          Rapid Blue 3LT, HTO Tension Blue, Z51, 5ZZ, E60, ZZ3, ZYC, FE4, J6N, FA5, Q8Q, SHW, VJR, C2Q, R8C

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          • #6
            Dont look at what dodge, chrysler, fiat charges for destination charges as its $1500.

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            • #7
              Originally posted by Nooshinjohn View Post
              The Federal government actually mandates these charges. The Subaru dealer nearest the factory in Lafayette, Indiana had destination charges on $795.00, and it was the same charge in Florida or Alaska. The regulation states that everyone must pay the same charge, so these fees are an average of delivery costs, and yes, some people pay more than they should and some pay considerably less...
              This universal 48 state destination charge for every vehicle was as a result of the National Automobile Dealers Association in the mid 1970’s lobbying Congress. They were not happy that dealerships closer to the manufacturing plants could charge their customers less for S&H than could those far away. Congress said “yes,” and that is why even a delivery to the National Corvette Museum (about 1/3 mile away from BGA), that customer pays the identical amount for S&H as I do for living in the Pacific Northwest.

              Thanks Paul Harvey.
              GBA Black; HTO Twilight/Tension interior; Z51 & Mag Ride; E60 lift; 5VM visible carbon fiber package; 5ZZ high wing; FA5 interior vis CF; ZZ3 engine appearance; 3LT; Q8T Spectra Gray Tridents; J6N Edge Red Calipers; SNG Edge Red Hashmarks; VQK Splash Guards; RCC Edge Red engine cover; VJR illuminated sill plates. Lifetime, annual contributors, and 23 year members of National Corvette Museum. Home is the beautiful Pacific Northwest.

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              • #8
                It will be interesting to see what the court decides on this one. While I agree that someone 2000 miles away should have to pay more than someone taking delivery at the museum, I do not have a formula for what would be fair. I do feel that a mileage calculation should be involved as well as rail charge for some.
                Rocket City Florida- 2001 ZO6 - 2013 427 Vert - 2020 Stingray

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                • #9
                  Originally posted by Nooshinjohn View Post
                  The Federal government actually mandates these charges. The Subaru dealer nearest the factory in Lafayette, Indiana had destination charges on $795.00, and it was the same charge in Florida or Alaska. The regulation states that everyone must pay the same charge, so these fees are an average of delivery costs, and yes, some people pay more than they should and some pay considerably less...
                  This is a common myth. The only federal regulation regarding delivery fees is that they be listed separately on the Monroney sticker. The standardization of the fee regardless of distance is the result of a negotiated agreement between the big 3 automakers and the NADA in the 1980s, and the other manufacturers have followed that agreement, for the most part. The government had no role in that agreement. And some manufacturers (Mazda, for one) do charge more to deliver cars to Alaska.

                  And there is definitely no regulation determining what the fee is. Some manufacturers charge far more than others, sometimes for lighter, easier to transport vehicles. I'm sure GM has a formula for determining the charge, but the actual cost of transport is only one factor.

                  Originally posted by John View Post

                  This universal 48 state destination charge for every vehicle was as a result of the National Automobile Dealers Association in the mid 1970’s lobbying Congress. They were not happy that dealerships closer to the manufacturing plants could charge their customers less for S&H than could those far away. Congress said “yes,” and that is why even a delivery to the National Corvette Museum (about 1/3 mile away from BGA), that customer pays the identical amount for S&H as I do for living in the Pacific Northwest.

                  Thanks Paul Harvey.
                  The NADA may have lobbied Congress, but there is no law requiring equalized fees. I've searched high and low, and the only law regulating fees is the Automobile Information Disclosure Act of 1958, which requires only that the fees be itemized.
                  Last edited by meyerweb; 06-15-2021, 01:07 PM.
                  Delivered 5/29!: Scarlet Fever 2021 2LT HTC, Red Mist Metallic Tintcoat, two-tone Natural w/ suede inserts, Mag Ride, Performance Exhaust

                  Gone but not forgotten: SunKissed, 2015 2LT, 7MT, Black over Daytona Sunrise Orange Metallic, Stingray convertible

                  Proud member of the Old Dominion Corvette Club: https://www.olddominioncorvetteclub.org/

                  Never grow up - It's a trap.

                  Comment


                  • #10
                    Originally posted by Denizen View Post
                    I was under the impression that destination charges cover more than just the actual delivery of the car to the dealer. They also have to prepare the car for the customer, something that varies from model to model. On the C8 there's an extensive PDI checklist,
                    Dealers get paid for PDI separately by GM. It's not part of the destination charge. If you do a courtesy delivery GM pays the dealer doing the delivery for PDI over and above the destination charge, all of which goes back to GM, not the dealer.

                    Delivered 5/29!: Scarlet Fever 2021 2LT HTC, Red Mist Metallic Tintcoat, two-tone Natural w/ suede inserts, Mag Ride, Performance Exhaust

                    Gone but not forgotten: SunKissed, 2015 2LT, 7MT, Black over Daytona Sunrise Orange Metallic, Stingray convertible

                    Proud member of the Old Dominion Corvette Club: https://www.olddominioncorvetteclub.org/

                    Never grow up - It's a trap.

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                    • #11
                      What should someone pay for delivery when the same vehicle is made at 2 different locations at some distance? Not sure if it is still that way, but many cars in the past were built at 2 different locations quite distant from each other. It would also play into what vehicles people will buy.
                      Murray - Uxbridge, Ontario, Canada
                      2020 Torch red Stingray coupe, Adrenaline red 2LT Q8Q E60 NPP
                      Deposit: July 30/19, 1100: Sept 15/19, 3000: Feb 14/20, TPW WAS May 18, August 24 and lastly July 27,
                      3300: July 15, 3400: July 22, 3800: July 30, 4200: Aug 06, 5000: Aug 7, 6000: Aug 12!

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                      • #12
                        The 'equalization' makes sense if you're a dealer. Do you want the dealer just across the state line have a cost advantage because his shipping is a few miles less???? ..... or for that matter, the dealer across town???? I don't think the law suit is going to go anyplace....
                        2020 HTC Torch Red with lots of goodies. Built in September. Museum Delivered in October......

                        Other toys in the garage: Ferrari California, BMW i8 Roadster, Bentley Flying Spur

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                        • #13
                          Originally posted by tooold2race View Post
                          The 'equalization' makes sense if you're a dealer. Do you want the dealer just across the state line have a cost advantage because his shipping is a few miles less???? ..... or for that matter, the dealer across town???? I don't think the law suit is going to go anyplace....
                          People used to drive to Detroit (or wherever the factory was) and literally take delivery direct from the factory and avoid all the destination charges. Of course, they also got no dealer prep, but that probably wan't nearly as big a deal in the old days.
                          Delivered 5/29!: Scarlet Fever 2021 2LT HTC, Red Mist Metallic Tintcoat, two-tone Natural w/ suede inserts, Mag Ride, Performance Exhaust

                          Gone but not forgotten: SunKissed, 2015 2LT, 7MT, Black over Daytona Sunrise Orange Metallic, Stingray convertible

                          Proud member of the Old Dominion Corvette Club: https://www.olddominioncorvetteclub.org/

                          Never grow up - It's a trap.

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                          • #14
                            I kind of agree that destination charges should be universal. It makes it easier. However, if they were going to go by distance, then it shouldn't be by "miles" from the factory. The country should be divided into like 4 or 5 sections relative to the distance from the factory. (Kind of like the shipping days/shipping chart from UPS/FedEx. And the charges are the same for each part of the country, and only vary by a couple hundred $$. Is someone going to dive 600 miles to pickup a car to save $200? Doubt it. You will spend more in fuel/time.

                            As far as the lawsuit is concerned, I doubt they will win unless they can prove GM is making a big profit overall on "destination" charges. They sold 20,000 and change 2020 C8's. At $1,095 each, thats almost 22 million $$$. If it is proven that GM only spent 15 million on destination/freight, then they profited 7 million and shouldn't have. OR lets say for example, for ALL GM's cars, they collected 300 million in freight, and they only spent 200 million then, there is a huge profit here that shouldn't exist.

                            Some cars will cost more to ship. Like if it is a smaller car, it takes less room, and more cars can fit on a rail car, or truck, thus lessening the cost per vehicle.
                            Delivered 6/30/21: The Red Demon 2021 3LT Red Mist HTC.
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                            • #15
                              I, personally, don't see a problem with GM making a profit on destination charges. It's not a hidden fee that gets tacked on or anything along those lines, they're up-front and honest about charging you that fee so why does it matter?

                              Also, knowing how much it costs to get a truck to deliver goods I doubt they're making much, if anything, off of the $1,095/vehicle.

                              If they need to remove that fee and just figure it in to the MSRP I'm sure they can do so.
                              On Order: 2LT Coupe, Z51, Elkhart Lake Blue, GT2 seats, Edge Red Calipers, Mag Ride, Front Lift, High Wing spoiler, R8C museum delivery.

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