|How Are Your Cars been transported to you?
New cars cannot be driven to their particular New cars cannot be driven to their particulardealerships because consumers would consider them used vehicles. Dealers order specific vehicles from each production plant, and the correct vehicles must be properly routed through multiple channels for a timely and damage-free delivery.
Automakersspend billions of dollars to transport new vehicles to their dealers, and a huge part of it this cost is passed on to consumers through the destination charge. This fee is posted on the window sticker or Monroney label found on all new vehicles.
The manufacturer's actual cost to transport a specific vehicle from the assembly plant to the dealer is not reflected in the destination charge. Automakers instead use proprietary formulas to arrive at a nationwide average for a particular product type. That means large pickups will cost more than small compact cars but the charge for that product is the same whether the consumer buys the vehicle one mile or 2,000 miles away from the assembly plant. Destination charges are only for auto transport within the United States. With vehicle pricing so competitive, automakers strive to keep the destination charges down because they are included in the manufacturer's suggested retail price (MSRP).
Used cars are also transported throughout the country. In 2007, according to ADESA Analytical Services, almost 42 million used cars were sold in the United States. About one third were sold through franchise dealers, another third sold through 42,751 independent used-car dealers and the rest sold by private individuals. Used vehicles can make multiple trips on auto transporters as they are shipped to auctions or wholesale operations before going to a dealer.
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