Is Destination included in MSRP or not?

Ask the Hackrs
1

Hi Hackrs,

This is a basic question, that I should know having been around here a while and having leased many times. But somehow I am being stumped on a current deal I am working on. What hasn’t helped is that in googling, I found an older thread here that gives a different answer, from what the google search (AI) suggests. So I am seeking some clarification.

Does the MSRP usually already include destination? Or is destination added as a cost along with the other fees (acquisition, doc fee etc).

*Edit: Because the ensuing discussion ended up getting into the specifics of the deal. This was the deal agreed to: 2024 Altima SR AWD. MSRP: $32, 140. Pre-incentive Discount: $3500 off MSRP. Agreed upon selling price: $28, 640–the figures on the actual contract didn’t line up with this, hence my hunt to figure out what all was being added back in to the capitalized cost.

In addition, in verbally agreeing to the deal on the phone, the GM listed “Destination fee” as one of the costs that needed to be added in. Giving me the idea, that the $3500 off MSRP might not have been a true discount, but destination was going to be added back in to negate some of that discount.

*Adding this for the benefit of future readers.

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Msrp does include destination, however, it is not uncommon for dealers in your area to misrepresent the discount and charge separately for destination.

Personally, I would tell any dealer trying to pull that crap to pound sand.

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3

I know you tagged MA but are you dealing with a VA dealer? They have that bs all the time.

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It is, but VA dealers like double-charging destinations. If working with dealers that do that, just make sure a discount is commensurate.

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Thanks guys!

Yes, I tagged MA, because I am working with dealers in MA (not VA).

I think that’s exactly what’s going on: I got a dealer giving a “bigger” discount than others. But it looks like they are adding back in destination as a separate charge (which negates a big chunk of the "discount’). – And that’s exactly why I couldn’t remember paying it separately in the past!

Unfortunately, I’m down to a bit of a time crunch, with the current lease up on the weekend. And the deal overall is not horrible. So I might still end up going through with it. (I’ll add it to signed, if I do go through with it).

7

Uggggh don’t reward those slime balls.

Check with @Bostoncarconcierge if you haven’t already

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DMV dealers do it all the time. That’s why their posted discounts are never true and need to add destination back in.

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What is this mystery car and deal?

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Can you download window sticker from their website and show them that destination charge is already in there?

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They’ll tell you “if you pay MSRP, we won’t charge extra for it”

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That’s another problem right there. I have asked for the Window Sticker a couple times, and I haven’t gotten it yet.

Added to that, several emails (especially those related to figures) have gone unanswered. It’s like they have specifically avoided discussing anything related to figures in email.

I just came off the phone with the Finance Manager. I asked for his email to shoot him the last queries I had, before doing e-signing the documents. And he reluctantly gave me the email, told me he doesn’t check emails often. And made a statement like “The deal you have is the only deal we have for you. I can’t change anything in those documents.”

To be clear: I was not being rude, demanding or anything obnoxious. Just trying to do my due diligence. And math does not lie. When the figures don’t add up, it makes my brain uncomfortable. I can’t rest until I figure out where the discrepancy lies…

Edit: I did receive the window sticker after posting this. Also, after posting this the finance manager did call me and try to explain the figures I queried via email.

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It’s not a mystery or anything fancy. Trust me, I have looked at your listings, and those of other brokers on the forums. It’s nothing that would be worth your time.

It’s just a 2024 Altima SR AWD. The remaining 2024 Altima inventory has some nice lease cash ($1675 on SR and $2175 on the SV for my zip code). I had one of those cheap 18 month Pathfinder leases that’s up, and just needed a cheap commuter car (for the wife)…

14

Find another dealer that will be more forthcoming with information.

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15

All good! you dont owe me anything lol

I was just curious

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16

Depends on the manufacturer. Toyota now has msrp then once options and destination is added in its called tsrp.

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Based on the information provided so far it sounds like it will be a mediocre lease and a terrible experience.

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So here is a link the the calculator:

In the $1980 in dealer fees there is: Acquisition $695, Doc Fees $685, Service/ Maintenance contract $319 and $23 sales tax on the Lease Cash.

I still had to round up a bit (to the $1980) to get the monthly payments to match. But the calculator is very close to the actual deal.

Thoughts?

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How is $14k total lease cost to rent a $28k car “cheap”? That’s actually hideously expensive.

You already have the acq fee populated in the calc so the $1980 is double counting

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Good catch! You are correct.

So if acquisition is not in the $1980, maybe it’s the destination that’s being charged? I have to figure out why the math is not mathing, and why I had to pad that figure (to $1980) to get the figures to line up.

21

That might be true. But we don’t ever keep vehicles very long. And each and every single time we have ended up financing a vehicle and trading it early (~ 3 years) the negative equity has been more painful, than whatever money we “lost” leasing.

There is definitely a subjective aspect to this (not everything shows up in the figures). The figures don’t account for being able to drive a new vehicle, and not worrying about the surprising large repair bills etc etc.

Edit: Right now, I am stuck in a financed vehicle (Hyundia Santa Fe), purchased last August, that has like $5000 negative equity. It no longer is an ideal vehicle for us (we need a three row SUV to replace the Pathfinder). And I wish I could get out if it, but there is no way to make the negative equity disappear.