$1,200 destination charge for Model 3?

$1,200 destination charge for Model 3?

I'm just wondering if anyone can confirm the destination charge for the Model 3. The Model S destination charge is $1,200. I'm hoping Tesla brings it down to a more affordable price.

David N | 5 August, 2017

It is what it is. Looking at new trucks and RV's I see 900-1100 range for destination charge.
And that's with the truck coming from Detroit and the RV coming from Indiana, this is with me being in Ohio, right next door. So the 1,200 from California is probably right in line.

stevegs | 5 August, 2017

One of the screenshots from someone's order page had it listed as $1,000.00

lilbean | 5 August, 2017


Shock | 5 August, 2017

For what it is worth if I click on new Model S now and new inventory on the right side I can calculate the transportation fee. That is the "destination charge", right? For my zip code, despite no service center for hundreds of miles, it says $0.

If it made any financial sense I'd just drive somewhere to pick it up, it would be part of the fun anyway.

stammit | 5 August, 2017

Destination charges are a nice profit center, but they're generally unavoidable. I bought my sister a car from an individual & had it shipped door to door from SoFla to Indy for $500.

Auto manufacturers/dealers charge 800-1200 for this same service & they still make you pick up the vehicle at a delivery point.

It is what it is...

carlk | 5 August, 2017

You again?

np57 | 5 August, 2017

stevegs +1

One of the employees shared his/her order screenshot and it showed $1000

stammit | 5 August, 2017

carlk - was that directed at me?

dd.micsol | 5 August, 2017

Well for me it's affordable. They have to ship the car directly to my house. Did it for S and X.
Perhaps inline waiters will get free paint/shipping/AP.
*rolling my eyes*

RichardKJ | 5 August, 2017

The "destination charge" is required by federal law. My understanding is that

1. it must be the same for a given vehicle regardless of distance

2. it must be charged for all cars

3 it must be stated separately from the price of the vehicle

When I bought my S in 2014 the destination charge was $1100 (and I picked it up at the factory). That has since gone up to $1200. It is apparently $1000 for the Model 3 (for now).

I believe the intent is that the charge should be the average cost for shipping, etc. for all cars so that there's no advantage/disadvantage to delivery location for either the buyer or the manufacturer.

Bighorn | 5 August, 2017

I've written Elon suggesting he price it like the gas companies would--999.99 9/10--there, much more palatable.

dd.micsol | 5 August, 2017

@big-LOL.. hilarious. Thanks for that.
What do we do with that extra .01 cent... let's open an account and dump it onto it. We'll be rich-
office space.

carlk | 5 August, 2017

stammit No. It's to the op who kept on posting nonsense requests that will never happen.

weluvm3 | 5 August, 2017

@carlk I don't get you? If you recognize the poster, and you feel that the topic in the thread is nonsense, then why bother reading it or posting on it?

It seems to me that some people in these Tesla forums devote excessive time and energy searching out threads that make suggestions they don't agree with, just to argue with the op or anyone that happens to agree with him or her. Of course, you are entitled to your opinion, but having an opposing opinion is also acceptable and doesn't make someone a bad person.

Frankly, I don't see why wishing something costs less should bother anyone who intends to buy that thing. It may never happen, as you say, but I can certainly sympathize why anyone would wish for it. If I get tired of seeing that sentiment expressed, I'll simply stop clicking on the corresponding links. But, in the meantime, it doesn't bother me at all. If it bothers you, it's much easier and generates far fewer bad feelings to just ignore it rather that respond negatively. In fact, I'll probably start ignoring all this negativity myself for the same reason. Not worth the effort to get past the Captcha, frankly.

ReD eXiLe ms us | 5 August, 2017

Most of the direct competitors to the Model 3 list their Destination Charge/Delivery Fee between $900 and $1,000. I think only a couple of them exceed that mark. I would be very surprised if Tesla chose to charge more for this than they did for the Reservation Fee.

sp_tesla | 5 August, 2017

carlk | August 5, 2017
kept on posting nonsense requests that will never happen."

By Archie nonsense Bunker!!

lilbean | 5 August, 2017

"Frankly, I don't see why wishing something costs less should bother anyone who intends to buy that thing."
Of course it's ok to wish something cost less. That is not the point being made. The OP wants the Model 3 fee to be less, hence special treatment. Why not say that the delivery fee should be less for the S and the X too? It sounds like more entitlement to me.

eleestein | 6 August, 2017

Fiddlesticks - My sentiments exactly. I just didn't want to get into it with carlk. He's bordering on being a troller! | 6 August, 2017

Sales tax is going to be over $3,000 most places. If a person is worried about $1,000 destination charge, they may want to think about waiting until there are CPO M3's on the market.

eleestein | 6 August, 2017

Those lucky Oregonians!

hsadler | 6 August, 2017


'What do we do with that extra .01 cent... let's open an account and dump it onto it. We'll be rich-
office space.'

And in the movie they referenced 'Superman 3' as the source for the idea.

weluvm3 | 6 August, 2017

@lilbean Tesla has no obligation to keep charging or not charging for things just because they did so in previous models. They have even changed their bundling policies in the same models over time.

The Federal law requiring that Manufacturers charge the same "destination fee" regardless where you purchase the car doesn't specify how much the fee needs to be. It can be $1 for USA buyers, if Tesla chose, and that would be perfectly legal. In fact, it would also be perfectly fair and reasonable, given that Tesla could have easily estimated what the average delivery costs would be for Model 3 in the USA, and already built that into the quoted prices, and set the delivery fee to be $1. They chose not to, not because of some Federal Law, but because they had already promised a base cost of $35,000 to USA buyers, a price point chosen for marketing reasons, but that wasn't enough to cover delivery and other extras which they were counting on being able to collect from the buyer later. Just like restaurants quote low prices on their menus, and skimp on employees salaries, because they know that they will make it up on tips later: they could build the true cost of labor into their menus, but they don't. Maybe they fear it would put them at a disadvantage to quote the true cost of food including service, and car companies likewise fear backlash from their customers. At least tips are theoretically optional and variable, although in practice most people feel obliged to pay at least 15% regardless of service rendered...

But, even if Tesla truly needed the extra money on average, the Federal law regarding Destination Fees doesn't prohibit them from offering varying incentives depending on the specific dealership that you purchased the car from. In fact, all manufacturers do this all the time. It is standard industry practice. Therefore, Tesla would be 100% free to designate a specific area code, which happened to be where their factory was located, and give all dealers in that area code a special dealer incentive which, by strange coincidence, just happened to be exactly equal to the Destination Fee. Obviously, those dealers would be free to pass that savings onto their buyers. The only catch was, those dealers would require that their buyers would be required to pick up their cars from the factory. Oh, and by another strange coincidence, there would be only ONE dealer in that postal code, and that dealer would just happen to be located in an office in the factory building. Strange, huh?

Sounds like a scam, but anyone who is remotely familiar with new car pricing should already know that no two customers pay the same price for the same car. Tesla is unusual in the amount of equality and price transparency they give buyers. So why stop with the MSRP? Tesla can, and should, do the same with all of the costs associated with purchasing one of their cars. And, sure, they should do the same for Model S and X as well. Even the best can still be better.

sp_tesla | 6 August, 2017

Fiddlesticks | August 6, 2017
The Federal law requiring that Manufacturers charge the same "destination fee" regardless where you purchase the car doesn't specify how much the fee needs to be."

Thanks, Good to know!

Tesla2018 | 6 August, 2017

The last thing Tesla needs is everyone wanting to go to the factory to get their cars. Most automakers ship cars to the dealers and then the dealers have to do the prep work and get the cars ready for the customer. I have no idea of how Tesla gets the cars to the dealers but I live 2 blocks away from a service center in FL and saw a car carrier with Teslas on it and it had a ModelX on it shortly after they announced deliveries had started. There are freight train tracks right behind the dealership in West Palm that run up towards Orlando and then out past Texas and maybe even out to CA so maybe they will be able to ship cars by train.

It would put a burden on the factory employees if they had thousands of local or nearby state people wanting to come to the factory and had to prep all the cars and test them and give them a final cleaning. You cant go to the port in Newark or Mercedes Headquarters in NJ and pick up a car as soon as it arrives so Tesla will probably make sure that people have to go to the dealerships to take delivery since they want to spread out the workload.

johnse | 6 August, 2017

There ain't no such thing as no Tesla Dealerships. (Three negatives equals one negative, right?)

When you are competing in an industry that uses a below-the-line charge that is meant to be an amortized shipping and delivery prep fee, including those costs in the base price artificially inflates the price as compared to the competition. Also, I don't think destination charge is taxed...but I may be wrong.

Being that all galleries and delivery centers are owned by Tesla, there is no business entity whom they could give incentives to counter such fee.

weluvm3 | 6 August, 2017

@Tesla2018 I once picked up my new Polo right from the factory in Wolfsburg (the Autostadt.) It was a package including one way train fare, overnight hotel with full board, factory tour and a park where you could look at exhibits and learn about cars (especially VW branded, obviously.)

The hand-over ceremony the next morning was great fun, too. I watched a big elevator collect my car and bring it down to me. Then, a trainer explained every aspect of my car to me, answered all my questions, and handed me my car and owner's packet. It was all in English, of course.

If still lived in Europe and planned to buy another Volkswagen, I guarantee you I'd do the tour again. Loved it. In fact, it actually cost a bit more than normal delivery, but worth every penny.

Frankly, I don't know why you feel you know what Tesla does and doesn't want or need. Just because Volkswagen can pull this off doesn't mean that Tesla can. But I certainly wouldn't put it past them, either. And are you honestly saying you wouldn't want to do something like that if you could? Not even once?

As for the ownership technicalities of the "dealerships." That's kind of the point: no independant dealers mean there are no legal entities who would be willing or able to complain about Tesla's differential pricing strategies. If they wanted to offer differential incentives depending on which "dealership" you designated to be "your" dealership, what's stopping them? Car manufacturers and dealers are free to offer incentives and discounts to any customer they chose. If they chose to offer incentives to customers who pick their car up from specific locations, I cannot imagine that would be illegal. If they were an old line company such as Ford, then perhaps some independant dealers might complain, threaten to leave their network or even sue them, but there are no independent Tesla dealers, so Tesla has nothing to fear.

And, as to your point about artificially inflating the base price, etc., well, don't old line car companies have to inflate THEIR base price to account for dealer profit margins and other shared dealership costs? Isn't that "unfair" to them? And, isn't it also true that most old line car customer don't pay MSRP anyway? They expect that quoted MSRP prices are negotiable. But Tesla's are not: you pay the quoted price, no discounts. So, that often makes competitor's quoted prices seem higher than Tesla's, while their "true" street price might be the same or lower (even though Tesla and the media use MSRP in all their price comparisons.) Is something only "fair" when it benefits Tesla, then?

weluvm3 | 6 August, 2017

@johnse FYI, yes, Destination Charges are taxable. Sorry.

David N | 6 August, 2017

oh geeze, here we go.....

Mr.Tesla | 7 August, 2017

So many genius armchair CEO's around here. They have it all figured out. Elon needs your mentoring ASAP.

garyjtate | 7 August, 2017

You have the option to have car delivered to your home if you are a certain distance from a Tesla store.

dsvick | 7 August, 2017

@RichardKJ - "The "destination charge" is required by federal law."
@Fiddlesticks - "The Federal law requiring that Manufacturers charge the same "destination fee" regardless where you purchase the car doesn't specify how much the fee needs to be.... perfectly fair and reasonable [to have] built that into the quoted prices"

They can't be rolled into the base price of the car. The only law that has anything to do with destination charges states that they be shown as a separate line item on the invoice. It doesn't mandate that the companies charge them or that they all be the same, just that they have to be separate.

dhiman76 | 27 December, 2018

On 12/26/18 I went to Tesla at Short Hills Mall to get price information of base Model three. I was told $46k that includes all fees accept DMV fee of $350.00. Today when I purchase via phone call it came up at $47,200.00. Please store sales gave a misleading information. When I called Tesla to complaint after the store manager stated it is what it is and you must pay this fee. I was told by Tesla only the store manager can sort this problem. Later when I purchasing agreement the purchase amount was $53,200 including autopilot option which I did not order in the first place. Please be careful double and triple check before ordering at Short Hills Mall. Not at all a pleasant experience. Car hasn't even arrived yet.

Xerogas | 27 December, 2018

@dhiman76: how did you order the car at a mall? Everyone else orders online, and prices are very clear.

Magic 8 Ball | 27 December, 2018

What a ripoff, I wouldn't pay more than $53,150 or at least get them to throw in the trucoat for free.

Work them down, you can do eet.

jordanrichard | 27 December, 2018

Xerogas, one can use the store computer to place an order. As for dhiman76’s story, there shouldn’t be any surprises because all costs except the DMV fee would have been seen not he computer. No one can just suddenly make it cost more. The DMV fee also is not dictated by Tesla. What you pay Tesla is what it would have cost you to register/title the car.

shelbyd | 27 December, 2018

tesla has several showrooms in malls. i was in the mall in hawaii in november and almost ordered. the sales person did not offer the $1200 destination delivery charge in our conversations about the tesla BUT it was very clear when i ordered my car. i am sure it is just one of those charges that everyone has and not the info a sales person is going to remind you of when they are trying to sell you the car LOL

kcheng | 27 December, 2018

Unfortunately ,the $1200 is a real fee, not made up. The store manager should have made it clear, though a mistake can happen.