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Personal delivery fee??

Personal delivery fee??

I received my paperwork and saw the 1k (990 to be precise) personal delivery fee.
I would prefer to drive off the car from the factory. In that would that fee still apply?
What is Tesla charging an extra 1k for?

Sudre_ | December 29, 2012

Same thing all the other car makers charge it for.

b.lafuente | December 29, 2012

I asked about the delivery fee as well when signing my final paperwork. It is indeed a standard fee (unfortunately) from all automobile companies (at least that is what I was told and I'll assume that they are telling me the truth).

skdave | December 29, 2012

Are all delivery points the same $990.00?

bobinfla | December 29, 2012

Yes it is

jat | December 29, 2012

I paid ~$850 for a delivery fee on my LEAF that I picked up at the dealer, and all previous cars I have bought have had a similar fee. Just think of it as "additional dealer markup". At least with Tesla, depending on where you get the car, you get a personal delivery experience for that.

Pungoteague_Dave | December 29, 2012

I buy at least one new vehicle per year and have never heard of or paid a personal delivery fee until the Model S. I purchase cars, trucks and motorcycles, mostly German brands and Ford, in Maryland and Virgina. Most do try to add on a titling service fee, which I insist on deleting or won't close the deal.

Mel. | December 29, 2012

Dave, you still paid the 30% dealer mark-up.

gregv64 | December 29, 2012

Often it's called a destination fee instead (part of tax, title and destination added to the sticker price). The government mandates it be a separate line item fee.

Electron | December 29, 2012

It also is mandated to be the same for everyone, regardless of shipping distance or complexity. Frankly, given that Tesla has a very modest retail footprint and far flung customers, I'm surprised it's been kept to under $1000. I wouldn't bet they are making any money on this overall.

ylyubarsky | December 29, 2012

I understand when you get your car thousands of miles away from the factory. For instance car made in Detroit and you received it in Miami. Accepted. But what if I want to pick up the car right from the factory, why should a pay a delivery charge?

adstein | December 29, 2012

This is totally standard for every car sold in the US. The manufacturer charges the dealer and you pay as part f the out the door price. It is on the Monroney sticker.

jjaeger | December 29, 2012

Why? Simple - it's the same if 0 miles or 3000 miles. Not 1 mile and 3000 miles. If it bothers anyone, have them deliver it to you at the factory gate...

Mel. | December 29, 2012

Why take delivery at the factory?

Electron | December 29, 2012

@ylyubarsky Because the government says so.

GeekGirls | December 29, 2012

@Mel: I'm picking mine up at the factory to participate in the factory tour, and to take possession a week or more before I would have otherwise. No, it isn't saving us money, but it does turn the process into something of an event. Besides, a friend of mine who owns a Roadster has never been to the factory and wanted to come along given the opportunity to do so.

Mel. | December 29, 2012

GeekGirls, that is exactly what I would have done if I lived closer. My point on asking the question, was that if you felt you were getting ripped off.., then do something different. See Ylyubarsky's comments above

jjaeger | December 29, 2012

Mei, I too picked up at the factory and for me is was just the opposite. the tour was great, and I wanted to get the car as early as I could (as we had a trip planned for the next day and what better way to break in the car and get to know it). So for me it was just the opposite - I felt lucky to have the option to do this (what other manuf would do this?) - and similar to geekgirls, I also brought along a Roadster owner and his wife and we all had a great time. It was an experience and one that my family and I will never forget.

ylyubarsky | December 29, 2012

I still don't hear that anybody could justify a delivery fee if you pick up the car right from the factory. And by the way Government has nothing to do with the delivery fee

Mel. | December 29, 2012

Jjaeger, we are in agreement... I was being facetious because of complaints about paying a delivery fee,... See above.

riceuguy | December 29, 2012

It IS required that if you charge a fee to one customer you MUST charge the same fee to all (spreading the cost among all buyers). See http://www.kbb.com/car-advice/articles/destination-charges/ for the details.

jjaeger | December 29, 2012

I 'hear' just the opposite - many who have justified it and more. To each his own.

GreenMachine13 | December 29, 2012

This is usually the destination fee that pays for your car to travel from the factory to the point of sale. It usually isn't $1,000. The price does seem high. If you are picking up at the factory it would seem to be an unnecessary expense as there is no shipping of your vehicle. I recall other luxury brands providing, flight and hotel for a factory pickup (maybe when economic times were easier).

Mel. | December 29, 2012

Jjaeger, what do you mean when you "hear" just the opposite? The opposite of what? What was justified ?..

I thought that a factory tour, when you are taking delivery, was a great way to go.. Sorry I jumped to agreement tooo soon.

ylyubarsky | December 29, 2012

Good point from GreenMachine13. If the person decides to pick up the car from the factory and flies from NY to California he pays for the airplane ticket then he pays for a private delivery from the factory to NY. Why does he have to pay a destination fee? I understand if he picks up the car in NY and pays a $ 1,000 - it's fair. Otherwise it's not right. And as GreenMachine13 mentioned that fancy companies even paid for a flight and hotel for a factory pick up.

gregv64 | December 29, 2012

A Cadillac destination fee is $900-$1000 depending on the model, and can't be avoided even if you live next door to the factory. This is a totally standard charge and is always the same for a given car regardless of how you get the car (it's higher for luxury cars because they are shipped in enclosed trucks). This is just the way the car industry works.

jjaeger | December 29, 2012

Mel, no we're good. I was responding to ylyubarsky's comment. For me in order of value are:

1) factory 'delivery',
2) personal delivery, and
3) standard delivery/prep that we've all endured
with dealership pick-up...

riceuguy | December 29, 2012

I will reiterate...Tesla only gets to decide how much the charge is; they cannot waive the charge for those who pick up at the factory or charge more for someone in Maine. That's how the law works, regardless of fairness. Considering the number of cars being shipped individually to fairly remote locations, and the number of folks picking up the car at the factory, $990 seems like a totally reasonable compromise, as many have noted that luxury car destination fees range from about $600 to $1200 and none include personal delivery (not that Tesla is in most cases right now!).

Brian H | December 30, 2012

I consider the surge in volume responsible. Whether that is a transient result is the question. Will the DS supply ever catch up to demand?

Vawlkus | January 1, 2013

Just in passing: if Tesla can't get a person out to do a Delivery, will they schedule someone to come out at a later time for a "primer" on the car? You'd still get the delievery experience, just a little while AFTER the car got delievered :P

bp | January 1, 2013

In states where Tesla can't deliver the vehicles, if there's a store in the area - wouldn't it be possible to get delivery at the mall where the store is located - and have someone from the store come out and help immediately after delivery?

GreenMachine13 | January 1, 2013

The real price is $990 + $180 = $1170. This is a high price. I'd love to be able to pick up at the factory but wouldn't be happy to pay this much for destination/delivery if I did so. This is not "typical". As much I support Tesla, I think it's healthy to question some of these charges. Many folks aren't receiving "personal delivery" yet they must pay for it. Other automakers MUST ship to a dealer which is why you MUST pay the destination/delivery fee. Tesla isn't operating in this manner so why should customers pay more?

gregv64 | January 1, 2013

"I'd love to be able to pick up at the factory but wouldn't be happy to pay this much for destination/delivery if I did so."

I never understand this sentiment. If you prefer delivery you absolutely have that option. It's as if you would prefer not to have the choice of factory pickup if they don't wave the fee. If you feel that way just don't pick it up at the factory, problem solved. What if Tesla "solved" the problem by just eliminating the factory pickup option?

So why do people choose to pick it up at the factory, knowing that the price will be the same? You get the car a bit sooner, and get to take the tour. That's good enough for me.

jjaeger | January 1, 2013

+1 gregv64

DarrellH | January 1, 2013

Actually GreenMachine13, it may not be typical in your experience, but I've had to pay a destination charge on each of the last 4 cars I've purchased in the last 2 decades. Each had a destination charge which was required to be paid no matter where the car was delivered--at the factory or across the country.

Brian H | January 2, 2013

Has been done. Not always.

Brian H | January 2, 2013

Oops. That was in response to question whether a DS visit would/could occur later.

Will staffing catch up to delivery rate?

fluxemag | January 2, 2013

The last two cars I've bought (a Lexus and an Infiniti) both had destination fees of $850 and dealer doc fees over $400. So this is nothing new. The thing that ticks me off is the sales tax on an item I bought over the internet with no retail locations in my state.

TINO F | January 2, 2013

In working with Mercedes-Benz for 20 years, I do have to share this thought. Our destination fee is $905. That is the charge to ship the vehicle from the port where the vehicle comes off the ship, and transport it to the selling dealer. That being said, if a client choses to do a factory delivery, Mercedes-Benz does not charge a Destination/Delivery Fee at all. The $905.00 fee is deleted. I do feel that this is a high line product, and that anyone that takes delivery at the factory should not have to pay a delivery fee. The same program exists with BMW, Volvo, and Porsche. Factory pick-up....No Destination/Delivery fee. If the car has to be trucked, different story. This is simply my opinion, based on what other manufacturers are doing.

GreenMachine13 | January 2, 2013

When I stated not "typical" I was referring to the amount not the charge itself. According to kbb the fee is usually $400-$800. We're all paying $1170 so clearly it's high. I've purchased 10 cars in the last 20 yrs so I've seen the charges quite a bit. I get that the charge itself is typical but not the amount.

Gregv64, the issue is with the fee not the optional tour. Why would anyone be ok with paying to ship a product and have someone personally deliver & explain the product to you and NOT receive either service? If you pick up at the factory you just paid $1,170 for services you didn't receive. That's not ok with me. Even if we take delivery 1,000 miles away and don't receive the personal delivery we shouldn't have to pay the $180.

jat | January 2, 2013

@GreenMachine13 - I paid over $800 for the destination fee on my LEAF, and another $150 for final prep. So, I don't think that the price is out of line for a car that costs twice as much. If you want to complain about something, complain about a $50 cargo net that has about as much material as a $5 ping-pong net.

It's just another cost of getting the car, and if you don't want to pick it up at the factory and feel like you aren't getting the delivery service then by all means have them deliver it to your house instead of getting the factory tour. If you feel left out of the tour, then think of it as paying for the tour. If you don't like either, then don't buy the car. Would you have been happier if that line was $0 and the base price of the car was just higher?

GreenMachine13 | January 2, 2013

@Jat, Comparing the buying experience of a Leaf to the MS certainly isn't apples to apples. The Mercedes, Porsche, Audi comparisons are far more reasonable. If you disagree with me that's fine. This is a forum for constructive criticism. It's not all going to be about how much we love Tesla. There are many issues with the process and product that should be expressed. I appreciate your advice but I'll make the decision on what I spend my money.

djp | January 2, 2013

GreenMachine13 - Have you purchased a LEAF lately? As an early adopter I find the buying experiences very similar. Pay a deposit, get a number, and spend months on forums like this waiting for delivery. Every bit as much anticipation, speculation, and good and bad data.

ylyubarsky | January 2, 2013

I am reading everybody's responses and it looks like blind is talking to the deaf. Why everybody is trying to show that other companies have destination fees. Show me one buyer who picked up the car from Lexus in Japan or Canada, Mercedes or Porsche in Germany and paid destination fees. This debate is going nowhere. Even the gentleman from Mercedes clearly said:if you pick up the car from port - no destination fee. I don't think we have a chance to fight this charge but I think it's obvious that no delivery - no charge. And don't tell me BS stories about Government Laws etc. As I said before there is no government law about destination fee. I can tell you more, $ 700 bank fee that you pay when you lease the car - it's the same BS charge that dealers put into their pockets. I hope I was clear enough to have a few people on my side, although it won't help us anyway.

riceuguy | January 2, 2013

@ylyubarsky, if you flip back through these posts, you'll see where I cited that while there's no law stating they must charge a fee, there is in fact a regulation that if you charge destination for one customer you must charge the same amount for all. From Kelley Blue Book:

"From an historical prospective, there was a time when you could travel to Detroit and pick up your vehicle direct from the manufacturer, thereby eliminating the destination charge. This ended over 30 years ago, when the automotive industry adopted equalized freight charges."

"The destination fee should be regarded as yet another cost of doing new car business. There are several other fees that manufacturers must bake into the price of their new cars and trucks, but the U.S. government has required this fee be itemized on the sticker based on the fact that it is a direct cost, above and beyond the "overhead" companies must incur in bringing a product to market. Tax, license and a detailed list of all the standard and manufacturer-installed options and their retail prices must also be clearly listed on the "Monroney label" of each new car."

JohnQ | January 2, 2013

@riceuguy, if I read your comment correctly it states that the government requires that the fee be itemized, not that it be the same regardless of where delivered. "...the automotive industry adopted equalized freight charges." So, my question is whether this is industry custom/standard or if the equalized charge is, indeed, mandated by the federal government.

@ylyubarsky, If I pick up my Benz in Germany I must then transport the vehicle to the United States and cover that cost. Same for a Lexus. As I'm taking delivery in a foreign country, US law (if it exists) regarding the delivery fee would not apply. Other import duties would, of course.

TINO F | January 2, 2013

If that is true, then why is this not shown when you build your car. It magically pops in at paperwork time. Build a car on any manufacturers site, and the destination charge is clearly displayed. I think the surprise is a the problem at over $1000
I have had many clients pick their cars up in Germany and for the factory experience, and off they go. There is no destination fee ever that way. As far as the above ylyubarsky, the manufacturer also ships the car back to the US, as that is built into the vehicles base price. You never have to arrange to ship your car from that country home. That is a crazy statement. I am not saying we can change this, but I do agree that Tesla Motors needs to be aware that on competitors vehicles, factory delivery waives the fee. I am not looking to start a battle, but state the facts.

ChasF | January 2, 2013

To be fair, you really have to compare factory pick-ups only in the US. I am one of the biggest nit-pickers with regard to overpriced features/options and even I don't have a real problem with the delivery fee. Mainly because it seems to be consistent with the rest of the (US) auto industry.

I can't believe this thread is still going. This fee is not going anywhere.