What Is a Car Destination Charge & How to Buy a Car at Affordable Rate?

When you go to buy a brand new car, there seems to be a lot of unnecessary paperwork along with the invoice or bills, etc. If you look at the car buying expenses with a better concentration, then you will find the particular mentioning of the car destination charge in the invoice paper. There are also some other charges like MRP, Gst, Taxes, etc.

The car destination charge may be very easily understandable by the term ‘delivery charge’. While in some online shopping platforms, they take a certain amount of delivery charge for each particular product, the car manufacturing companies also do the same. For the total number of cars to be manufactured, they equally fix the destination fees for all the buyers. It does not matter whether the car buyer lives near or far away from the car showroom, every buyer has to bear this expense.

Why do the companies ask for a car destination charge?

To state this fact very clearly, you must be acquainted with how the cars are delivered. From the manufacturing factories, they are brought to the showrooms by trains, Lorries, trucks, etc. Then, according to the buyer’s address, the cars are then sent to their home or they can also take it from the showroom as well. So, this process of shipping also includes a certain cost which is divided into the total number of cars.

Where can you see the destination charge specifically?

For your better observation, you must have seen that the stickers mentioning the destination charge are always put up on the windows of a new car. Sometimes it feels very frustrating to some buyers because they think the car’s price to be less until they are being shown the excess destination fees.

Why is it listed separately? Is it a scam? 

Although separate enlistment of the particular destination charge makes no sense to some customers, still its main objective is to protect the buyers from frauds. In the past times, there were some instances when some greedy car dealers used to take extra delivery charges along with the destination charge for extra profit.

After several complaints from some genuine buyers, the federal government came up with the new rule. It stated that all the manufacturing companies had to charge an equalized charge for transportation for all the buyers and they have to show it separately on the car windows.

The present vs. the past of destination charge. Is it negotiable?

It is not far when one can go directly to the manufacturing factories to buy a new car without giving the delivery charge. But with the several fraud cases reported, the government-mandated the equal destination charge necessary for all the automakers. So, around the last thirty years, buyers have to pay this charge additionally.

Although, some companies give interesting discounts as per the customer needs and seasonal demand in very rare cases. These offers only consider the air-traveling and hotel-stay costs. Moreover, no matter how much bargain you can do with the manufacturers or in the showroom, as far as this specific charge is concerned, there is no discount as everyone has to pay the same amount.

Is there any positivity in giving this extra money?

Due to the government’s amendment of the destination charge to be listed separately, the automakers have become free not to highlight this extra charge along with the vehicular price. The reason behind it is that it is actually not a part of the car’s price. Rather, this charge is the separate delivery fee mandatory for every car buyer to be given.

For instance, if you are going to buy a car worth of 10 lakhs INR, and if this is the advertised price of that particular car, then you must contextually assume that you are going to pay them around  25000 extra as its destination fee. You may feel frustrated, but you must consider the fact that all the buyers have to give an equal amount for that particular car rather than giving different amounts of money as per the delivery address. This varying destination fee was prevalent until and unless the government made the destination charge separate on window stickers.

Is it also the same for Foreign Companies and Automakers?

Vehicles that are built over the boundary line of our country do not take higher delivery fees. The amount put up on the car’s window is all-inclusive of the costs incurred while it is being transported or shifted either by road or by rail or by both the mediums within any particular continent.

But still, the charges vary in some cases and become more expensive. This charge varies according to car manufacturing companies and their different models of cars. That is why all the buyers should be professional and flexible enough as far as the price is concerned.

How can you buy cars at less price?

If you think that buying or choosing a car is easy, then you may be living in a fool’s paradise. Needless it is to say that buying a new four-wheeler can add a bit of stress in your mind for sure. So it is better to go to the showroom for a clear-cut understanding of all the necessary changes that will be included in the final price of any particular car. Also, while checking the prices and charges, you must minutely observe what charges can be avoided, which are negotiable and which ones are unavoidable.

Unavoidable Charges are multiple taxes which goes in government fund and the charge of ownership and registration of the car to your name. Also, the car destination charge or what the manufacturing companies charge for delivering the car is unavoidable, as has been mentioned in detail earlier in this article.

What charges can be avoided or negotiated?

Still, there are certain other charges that you can avoid or negotiate with a bit of professionalism and logistics. These charges are elaborated below:

• Advertisement fee: It has often been seen that sometimes the dealers add a certain amount extra to cover up their advertising expenses. Therefore, instead of selling a car at a valid price if any dealer asks you to give an advertisement fee extra, you just ignore them and refuse to pay this amount.
• Documentation charge: Although it seems fair to every buyer to pay the amount needed to make the papers of the car on their name and for the registration, sometimes the dealers make you fool by charging some extra money for this paperwork. So, you may not avoid this fee completely, but you should ask for a minimum discount.
• Delivery fee: There are some dealers who cleverly put up an extra sticker on the window of the car which enlists charges namely ‘pre-delivery inspection charges’, ‘car destination charges’, ‘dealer’s charges’ etc. Do avoid and refuse to pay these extra charges as all of them are already included with the car’s total price.
• Market adjustment or competition charge: Well, this one is hard to negotiate or avoid when you are going to buy a bestseller or the newest model. This is because the automakers and the dealers have a little benefit over the total price of the car. Still, nowhere it is said that you have to pay extra only for their benefit. So, when you go to buy a car, you have the complete right to ask for a discount.
• Loan payment charges: For those buyers who do not buy the cars in cash and do not pay the full amount at a time, the dealers directly offer them loans. But in this case, they have to pay an extra fee connected with the loan. So, before approaching to take a loan, do read the terms and conditions of payment carefully and understand the procedures clearly. Also, you must check in your bank and compare it with other bank’s loan facilities as well. The lesser the fee they charge, the better for the buyers.

Optional Service Charges

Moreover, apart from these technical and mandatory charges, most of the buyers are seen to pay some unnecessary service charges which are described in brief below:

• Extended warranty fee: Although the cars are primarily given warranty period, some dealers also give extra warranty period by taking extra money from the buyers. And it is always better to have your car always under the company’s protection.
• Life insurance or disability charge: Some insurance agents pair up with the dealers and the dealers offer the buyers some policies which will help the purchaser to repair the car at a lower cost. Also, these insurances cover post-accidental death money.
• Fabric protection, rustproof, and paint sealing fees: Nowadays, cars are mostly built to stand by the corrosive nature of the weather and the poor conditions of the roads. Therefore, you need not pay anything extra for these things. When the outside car paint will go off, just repaint your car.

Conclusion

So, before going to buy a car, do update yourself according to the instructions given above and also cross-check all the necessary details, prices and destination charge of various vehicle and companies available in the market.