What “Destination charge” means
The destination charge (sometimes “destination and delivery” or “freight”) is the automaker’s charge for getting the car from the plant or port to the dealer. It appears as its own line on the Monroney window sticker and is already inside the MSRP total. As of 2026, destination charges commonly run from about $1,000 to over $2,000, depending on brand and vehicle size.
Because the manufacturer sets it and bills the dealer for it, a dealer won’t usually remove it as a line item. You can still negotiate the car’s price, which has the same effect.
How it shows up at the dealership
The thing to watch for is a second shipping-type fee. A “dealer freight,” “dealer prep,” “PDI” or “handling” charge listed on the dealer’s addendum or worksheet is not the manufacturer’s destination charge. It is the dealer’s own fee, and it is negotiable.
Worked example · illustrative numbers, not a quote
Spot the double charge
| Destination charge on the factory sticker | $1,395 |
| “Freight & prep” on the dealer worksheet | $895 |
| What you should agree to pay for shipping | $1,395 (already in MSRP) |
Pre-delivery inspection is normally paid to the dealer by the manufacturer. Ask what a separate prep fee is for.
What to do
- Compare the destination line on the window sticker with every fee on the worksheet.
- Question any second freight, prep or handling fee.
- Negotiate the out-the-door number so fee shuffling doesn’t matter.
What to say
“Destination is already on the factory sticker. What is this separate $895 freight and prep fee? I’m not paying shipping twice.”
Also called: destination fee, freight charge, delivery and handling.