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Discussion Starter · #1 ·
Noticed that on Subaru's build & price they add a $1,050 destination charge to your estimate.

Now from what I know about Destination charges this is unique to the auto industry as every other business I know absorbs the cost of "freight in" to their inventory as part of Cost of Goods Sold.

However, this is also supposed to be the same, nationwide so there's no lower cost in Indiana where they are built, then in say Florida or California dealers.

That is until your sticker shows Transportation as (Inland Freight & Handling Charge) and comes to $1,060 for me.

I believe at this point what we have is a dealer tacking on $10 extra on top of destination and calling it "handling".
 

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Hi, no, probably not them. You live in a Subaru Distributor Corporation distribution area, so, your pricing is different. This is mentioned in the fine print on the page that indicates destination charges. SDC and SNE served customers do not necessarily pay the same amounts. In their regions, SDC and SNE act as the distributor between Subaru and they dealerships. All other regions are distributed directly from Subaru to car dealerships. Pricing may vary in other states, as well, depending on various factors I am not knowledged in.

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Of course not. You appear to make the assumption that the destination charge has some factual basis rooted in actually shipping a car. Shipping a car in the high volume that a manufacturer to a dealer would be rather low. So much so we would not be happy with the $1,050 charge if we knew how low it really is. This is just another way for auto manufacturer's to make a profit. Which I guess is a bit sneaky but if they make my car and warranty it they do deserve a profit. Just would be nice if they were a little more transparent.
 

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Discussion Starter · #4 ·
So in short, there's a middleman in the Northeast making port assembly being Boston, MA, and then vehicles brought to dealerships by Diversified Automotive for $1,060 but in Florida and California dealerships it's just trucked there for $1,050.

The old adage is true: add a middleman, end customer pays more.
 

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SDC Port is upstate NY, though SNE seems to have helped with some port destination work.
 

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The old adage is true: add a middleman, end customer pays more.
Pretty much. The distributorships (which are fortunately few) are independent businesses just like the dealers are independent businesses and each level can charge what they want to to their customers within their respective contractual territories/market geographies and within any rules that SOA has for that arrangement.

They are treating the destination charge like any other piece of the puzzle and apparently adding a ten buck profit on it since it's likely that SOA is charging them the $1050 standard destination fee which doesn't get discounted even direct to dealer, if I'm not mistaken.

I forget it if was here or in one of the sister Subaru forums where the history of the distributorships was detailed, but it was interesting.
 
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At first, I thought so, too... But, they're not, really. In 2011, it was $725. That's about $875 now, after adjusting for inflation, and the remaining $175 can largely be attributed to higher-than-inflationary cost increases for rail, truck and related expenses (eg: fuel for both transport industries).

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At first, I thought so, too... But, they're not, really. In 2011, it was $725. That's about $875 now, after adjusting for inflation, and the remaining $175 can largely be attributed to higher-than-inflationary cost increases for rail, truck and related expenses (eg: fuel for both transport industries).

View attachment 11610

Good for Subaru, bucking the rest of them! Another example of how Subaru earns our trust.
 

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Discussion Starter · #10 ·
Remember it's also based on the size of the vehicle as when getting them on a vehicle mover less Ascents can fit (theoretically) than say Imprezas.

Impreza holds a slightly lower $925 destination charge, so I'm guessing that or insurance has something to do with it.
 
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Remember it's also based on the size of the vehicle as when getting them on a vehicle mover less Ascents can fit (theoretically) than say Imprezas.

Impreza holds a slightly lower $925 destination charge, so I'm guessing that or insurance has something to do with it.
not enough that would warrant the higher than inflation increases. thankfully Subaru is not playing that game.
 

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Everything is going up. It now costs $5000 to rent a U-haul truck to make a 1,000 mile cross country move, unless you are moving to a less desirable state such as CA, NY, NJ, etc. Too many trucks are ending up in TN, GA, AL and sitting there. Increased transportation costs are real.
 
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