[RahulNagaraj]

General Motors has been issued with a class-action lawsuit by customers, claiming that the company has been making profits from destination charges.



According to a media report, the lawsuit was filed by two General Motor customers. While the first one from California paid US$ 1,195 as destination charges for his 2021 Chevrolet Equinox, the second customer from New Jersey bought a 2019 Cadillac Escalade with US$ 995 paid as destination charges.



As per the complaint filed in the lawsuit, General Motors is said to make a 'significant amount of profit' by deceiving customers into paying more than the actual cost of the vehicle delivery. The two customers also claim that General Motors uses destination charges as a way to add 'hidden mark-ups' into its vehicle transactions.



A destination charge is basically the average cost of delivering a vehicle from the company's manufacturing facility to their dealerships. The destination fee is charged to the dealer, who in turn passes it on to the customer by adding the amount to the overall vehicle cost. These charges are usually non-negotiable for customers, who must pay the asking rate at the time of vehicle purchase.

General Motors is said to usually charge a destination fee ranging between US$ 995 for small vehicles and US$ 1,695 and larger models.

There is no official statement or announcement regarding the lawsuit from General Motors.

Source: GMAuthority

Link to Team-BHP news

[landcruiser123]

Sued for making profits in the land of extreme capitalism? Unless the US government rules that Destination Charges are illegal (which it is not), I don't know on what grounds the court will entertain this case.

These two clowns (customers) should have negotiated hard or bought a Ford.

[TrackDay]

This is something new. Just like the destination charges, do they think that the sticker prices on those cars are the actual cost of building those cars ! It is a business and at the end of the day profits will be made wherever possible. Anyways will keep an eye on this development. There is a similar one against another manufacturer too. Check out this link
https://www.carcomplaints.com/news/2...n-charge.shtml

The U.S. government requires that the destination charge be listed separately and regulates how the amount is calculated. This also means there should not be any additional delivery or transportation fees. The good news is that the dealer destination charge should include a full tank of gas in the vehicle.

Source: https://www.motorbiscuit.com/the-dea...ave-to-pay-it/

Was unaware of this till now, but do you guys get your new cars from the dealers in the US with a full tank of gas ?

[floyd]

Originally Posted by TrackDay

Was unaware of this till now, but do you guys get your new cars from the dealers in the US with a full tank of gas ?

Yes, always, and for both new and pre-owned cars. Dealers will even fill it up with premium gas if you ask for it. The cost of a full tank is going to be between $30~$60, depending on the car, and so it's really a small fraction of the price of the car.

Originally Posted by landcruiser123

These two clowns (customers) should have negotiated hard or bought a Ford.

Ford also has the same charges.

[GTO]

Originally Posted by landcruiser123

Sued for making profits in the land of extreme capitalism?

Agreed that it might not have much standing in court (never know in USA though), but I will say that the car manufacturer should stick to profiting from the "car" only. Other add-on services that are critical to a car's delivery (like destination charge) should be at cost. Once the manufacturer gets addicted to nickle-and-diming, it's a tough habit to kick. What next? Cleaning charges before delivery? Or parking charges if you delayed your delivery by a week?

Dealerships do this and the stealerships that most are, it's hardly surprising. But manufacturers should be more reasonable IMHO.