Tesla increases destination and documentation fee in Canada by 33%

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From the article: Tesla has increased its destination and documentation fee for all its vehicle models currently sold in Canada by 33%, a move that has sparked discussion among potential buyers. In Canada, the destination and documentation fee is a mandatory charge added to the price of any new vehicle. The destination fee covers the cost of transporting the vehicle from the factory to the dealership or delivery location, while the documentation fee covers administrative tasks like processing paperwork and registration. While this fee varies by manufacturer, it is typically non-negotiable and can add several hundred to a few thousand dollars to the total purchase price. In the case of Tesla, their destination and documentation fee for the Model S, Model 3, Model X, and Model Y was $1,880. However as of late last week, it is now $2,500, a $620 (33%) increase. The Cybertruck, which is expected to begin deliveries in Canada in early November, has its own destination and documentation fee of $2,750.

I heard about this I think it’s because Canada has a lot of horses.

The article doesn’t mention what the American destination and documentation fees are. Are they just adjusting for the currency?

Bold statement (and this isn’t specific to just Tesla), but if the destination fee is a flat amount that applies consistently for delivery to any delivery centre in the country… as it appears is the case here… then it should be included in the base advertised price. If it’s mandatory and non-variable then I can’t see an argument why it shouldn’t be included.

For areas that have vehicle property tax, the tax is usually based on MSRP. By paying destination fee separately, you are not taxed annually on the value of that fee. It also helps qualify for rebates, as it doesn’t count towards MSRP.

Wasn’t aware that vehicle property tax was a thing here in Canada?

In Quebec, it's called a luxury vehicle tax that applies to the value above 40K. EVs are exempt.

Seems higher. Which makes sense seeing as the vehicles are traveling farther. All US vehicles are made in the US. Canada sales are made in the US or China.

So a Honda Accord is a luxury car now?

I believe it’s because Tesla will no longer import Chinese cars into Canada

Shipping them from Cali is more expensive than crossing an ocean?

The luxury vehicle pricing committee forgot about inflation

Sucks to see Tesla taking a page out of Stealership business model. Bad move, keep it simple with all in pricing. Destination charges have never made any sense to consumers, why not charge for air inside tires ans cabin too. FFS

This sounds like a sneaky workaround that the government shouldn’t allow. I know the US is pretty lax about this but up here in Canada they don’t take too kindly to trying to circumvent our regulations and laws

Sadly, yes. I heard the average new car sold is 44K. They haven't heard of inflation.

40k??? That is wild. Over here in BC it is much higher, I think 80k or so

Destination fees have been around and regulated for 30+ years. It’s not a work around, it’s a legitimate expense. A work around would be if they started selling Plaids for $54,999 with a $30k destination fee.

New cars for initial delivery can move more by boat than by car trailors.

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In the US, it’s a flat fee on every vehicle because the government mandates it to be. Not sure about Canada

Can you explain why it just isn’t part of the msrp then? It sounds like an unavoidable fee that you have to pay to buy a new car, and it’s always the same fee. Not asking to be annoying, just curious how this happened

Because historically car companies didn’t change their pricing very often. An F-150 cost roughly the same for the entire refresh cycle, but during macro economic events like the oil crisis, the cost to deliver vehicles went way up. They could adjust the destination fee, without changing the price of the car. “Free shipping” is a new phenomenon. For decades prior, paying shipping and handling was expected. At this point it probably could be baked into the MSRP, but no one is pushing for it. People that live in jurisdictions with vehicle property tax are very against it.