Destination and handling charge

Destination and handling charge

For those who pick up their car at the Fremont factory, is there a destination and handling charge? Under the old pricing scheme, this charge was separate and was not included in the initial build price. It is added in the final order along with tax and license. Now that it is included in the initial build, this does not matter so much. I plan to pick up my P85 in late Sept. in Costa Mesa but was wondering if I pick it up at the Fremont factory, I could forgo the destination and handling charges. I figure it would be fun to drive it down to So. Cal. using the supercharging network.

portia | September 5, 2013

no, it is included regardless of pickup or home delivery!

plpham123 | September 5, 2013

Thank you for the response. What is destination and handling charge? Descriptively, it sounds like the cost of shipping the car. If someone picks up the car at the factory where it is built, why would there be a shipping charge? Therefore it must cover some other charge. Anybody know the answer? Just to satisfy my curiosity. I guess I'll just pick it up in Costa Mesa then.

Kleist | September 5, 2013

Everybody in the US pays the same - picking up at factory or delivered to Alaska.

PatT | September 5, 2013

If you pick it up at the factory, another issue could be that you will end up paying California sales tax. Unless you live in Northern California, the only two states north of the factory do not charge sales tax on EVs and that trip would cost a lot more than the destination charges.

hsadler | September 5, 2013

Alaska also north

soma | September 5, 2013

Every manufacturer does this, but it would have been innovative for Tesla not to, and forgo the excessive "destination charge" if picked up at the factory. As it is, it comes off as another way to inflate the price.

That said, they could just as well have put it in the vehicle price and we would complain less by not knowing about it, so what can you protest?

tomkist | September 5, 2013

The additional fees and such from Tesla are not excessive. Many dealers are a lot like TicketMaster and add fee fees. Car preparation fee (washing the car before giving it to you), doc handling fee, doc filing fee, advertising fee, etc. | September 5, 2013

It's nice that Tesla is just bundling it into the base price now. For all dealers, it's just another way to pad the price, so it's somewhat innovative that Tesla doesn't tack it on at the end anymore.

It did seem silly to pay a destination charge when you get your car at the factory.

dlewis | September 5, 2013

From what I understand it is required by law that all the cars have the destination charge and it be the same regardless of how far from the source. It is to keep those of us on the East Coast from having to pay the entire cost of shipping and having the car cost more depending on where you live.

portia | September 5, 2013

here is a link on kelly blue book,
and autotrader

it is Equalized, so basically we who pick up the car are subsidizing those of you on the east coast or Alaska, Hawaii, etc...but it is government mandated ( not the amount of course), and it is charged on all new cars. If you live far away, would you feel like paying $5000 for the destination fee? it is better to be shared pain.

plpham123 | September 5, 2013


Thanks for the links. Very informative. Now it make sense. I agree it should be included in the stated build price instead of being added on at the end with the tax and license.

Brian H | September 5, 2013

Since Tesla is the only mfr. on the West Coast, sparing East Coasters is hardly the general motivation!