Will there be a destination charge on Factory pick-ups?

AlexD

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I plan to pick up my Cybertruck at the factory in Austen if this is permitted.
I have just finished reading an article written by Brian Cooley of the Driveshow on the iniquitous "New car destination charge" in the USA.
According to this article, the auto industry charges a flat fee in excess of $1000 destination fee even if you live next door to the manufacturing plant.
That's robbery!
Would this mean that Tesla will charge me a "Destination Fee" when I collect my Cybertruck from the factory parking lot in Austen?
Wow! if so, this is going to be one hell of an unhappy bunny....
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ajdelange

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You WILL be charged VA sales tax however you take delivery of the car so I'd think that might be a bigger driver than destination charge. If you take delivery in a state that does not charge sales tax to out of state buyers then you are OK but if you take delivery in a state that does you will pay it twice. All sort of moot at the moment since Tesla can't sell you the truck in Texas. This is generally thought to mean that they have to truck it to another state and then bring it back to the factory if you want to pick it up there.
 

Jhodgesatmb

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You WILL be charged VA sales tax however you take delivery of the car so I'd think that might be a bigger driver than destination charge. If you take delivery in a state that does not charge sales tax to out of state buyers then you are OK but if you take delivery in a state that does you will pay it twice. All sort of moot at the moment since Tesla can't sell you the truck in Texas. This is generally thought to mean that they have to truck it to another state and then bring it back to the factory if you want to pick it up there.
"All sort of moot at the moment since Tesla can't sell you the truck in Texas. "

But can't they sell me the truck in California and have me pick it up in Texas? It seems to me that that is different. Right now Texans have to buy in another state and pick up in another state and then, I suppose, ask the Texas DMV for a Texas registration. You have at least one Tesla, and we have just one. I know that there was some charge on our Model 3 other than sales tax and registration but it wasn't like the destination fees of old that we paid to dealers. Am I mistaken here?
 

ajdelange

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At this point in time the only certainty is that he will pay Virginia sales tax.
 


happy intruder

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The destination fee mostly covers the paperwork for the sale and getting ready to be registered. Also inspections, changing it from storage to being ready to be used. People hours cost more than shipping hours.

-Crissa
if your live in California and buy on-line or at a sales office in California, you will pay sales tax and registration fees when you pick up the car in Texas of the paperwork......I think I am correct.....however, you will still be charged $1200 for shipping......its built into the price

I an not sure if I can buy in Texas and then come to California, pay sales tax here and then register here....I am almost sure the car has to be registered by Texas to the state where it was purchased......

if you do pay California sales tax when you pick up, make sure when you come back to California they dont charge you sales tax again at the DMV.........if the paperwork said and shows Ca tax paid, you may be ok
 

Crissa

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however, you will still be charged $1200 for shipping......its built into the price
I didn't say the destination fee was the registration fee.

The auto manufacturer has to do a bunch of paperwork for the car to even be able to be registered at all.

Then you pay your registration fee.

-Crissa
 

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I didn't say the destination fee was the registration fee.

The auto manufacturer has to do a bunch of paperwork for the car to even be able to be registered at all.

Then you pay your registration fee.

-Crissa
They push a few buttons, enter your name and stuff and everything is taken care of electronically, including sending info to your DMV and/or Dept of Licensing (WA has separate places for each of these). I've bought many cars and most of this paperwork is worthless garbage, boilerplate junk. Of course they also use this time to try and get you to buy all sorts of extended warranties and other things that aren't always necessary.

As for sales taxes, CA and WA charge at least the difference in taxes between where you bought it and the sate you end up registering it in. If you pay taxes out of state and don't register it in CA for over 6 months, they don't charge you extra but if you move to CA earlier than 6 months after buying it, they absolutely charge you CA sales tax (happened to my daughter). One nice thing about living in WA is I was able to keep my plates after living in CA for a year, then moving back to WA. Only had to pay license registration again.
 

Crissa

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You can hand-wave the buttons, but there is actually alot of paperwork in getting a car ready for registration. It's pretty gnarly.

There's also alot of prep to change a car from transport and storage to being ready to drive. Less for electric, but still. Inspections.

-Crissa
 
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AlexD

AlexD

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The destination fee mostly covers the paperwork for the sale and getting ready to be registered. Also inspections, changing it from storage to being ready to be used. People hours cost more than shipping hours.

-Crissa
That’s surely a sales cost. Imagine Walmart adding something on your bill to cover ordering costs, shelf packers and check out till operators
 


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I plan to get my Cybertruck in Austin to get even with the trucks that dusted me with their rolling coal and return to the same policeman who wrote me a traffic citation with mis-spelling and show him my spell-check. :p
 

happy intruder

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You can hand-wave the buttons, but there is actually alot of paperwork in getting a car ready for registration. It's pretty gnarly.

There's also alot of prep to change a car from transport and storage to being ready to drive. Less for electric, but still. Inspections.

-Crissa
 

Ogre

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Auto companies don't have "Pick up Windows" at the factory. Any logistics around this would have to be done for the small number of people like us. Those logistics aren't free.

Staffing a pick up area, and storing vehicles, prepping them for sale, dealing with tax/ registration for each state, dealing with customers who have issues with their car (damage/ misaligned seams)/ etc... that's not stuff they do at factories, Tesla's showrooms and service centers deal with that junk.


I would pay the destination fee on a factory pickup without blinking.

The experience of going to the factory, taking a tour, getting the keys on my truck with zero point one miles on the odo, and driving it home seems like a unique/ fun trip. (Even without the tour to be honest)

If you aren't interested in that experience, you are probably better just letting Tesla deliver the truck to your local service center and picking it up there.
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