Class action lawsuit filed over Ford's destination charges

[markregel]

Class Action Lawsuit Filed Over Ford Destination Charges
https://fordauthority.com/2021/07/class-action-lawsuit-filed-over-ford-destination-charges/

Destination and delivery charges are one of those things that car shoppers have come to expect and have little choice but to pay. Many assume that this charge is precisely what it costs the manufacturer to ship a vehicle to a dealership, though a new lawsuit – Mary Hawkins v. Ford Motor Company, recently filed in the U.S. District Court for the Central District of California – alleges that Ford destination charges are actually profitable for the automaker, according to Car Complaints.

The class-action lawsuit was originally filed by the owner of a 2019 Lincoln MKX, who purchased the vehicle new back in 2019. The plaintiff argues that she didn’t know at the time that the $995 Ford destination fee she paid generated a profit for the automaker, and claims that most consumers aren’t aware of this fact either.

“By virtue of the name of the fee itself, Ford misleads reasonable consumers into believing its ‘Destination & Delivery’ fee reflects the actual cost of shipping its vehicles to their ‘destination,’ not the cost of shipping its vehicles plus profit,” the lawsuit reads. The lawsuit doesn’t specify how much of a profit Ford makes on its destination and delivery fees, but alleges that this practice is “deceptive and unfair.”

The lawsuit also points out that Ford’s destination charges for the Ford F-150 have increased 42 percent over the last four years, while other automakers – including BMW, Infiniti, Audi, Mercedes-Benz, and Volvo – have only increased these charges by less than 20 percent over the same time period.

Ford isn’t the only automaker facing such allegations, however. In fact, the same lawyers responsible for this lawsuit also filed a similar suit against cross-town rivals General Motors and Stellantis last month.

What a JOKE!!!! Who said Ford or anybody else has to disclose when and where they make a profit? Why wouldn't they make a profit on destination charges? Profit is the reason we have vehicles like the Bronco and Toyotas for that matter. If you don't like it get yourself a Yugo or Trabant. Better yet, move to Cuba or another communists hellhole. Who do you think is going to pay the millions of dollars that end up the pockets of Lawyers? YOU DO, not Ford.

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[BroncoJay]

We argue that the jack wagon selling his FE for $169k is capitalism but then fly off the wagon to at $1495 destination fee and claim it’s too much of a profit for an automaker...

the hypocrisy knows no end...

 

[markregel]

Ford could easily side step this by offering factory pickup. Then they could just point and say, if you don't want to pay the fee then come get it yourself. And charge to the service to pick it up.

Ford doesn't have to sidestep anything! They have the right to set their own prices, if you don't like it get another brand. Its called the free market system!

 

[kodiakisland]

Pretty lame that the reason for the suit is they didn't know Ford was making a profit. Really? Come on. Are people really that clueless? Of course every fee is added to make a profit. Do they expect a business to take a loss or just break even?

 

[Tom Ryan]

Is that the standard? Do you not think a reasonable consumer would be misled into thinking that Ford is merely relaying costs, as Ford has gone out of its way to portray, when that is not true?

 

[markregel]

We argue that the jack wagon selling his FE for $169k is capitalism but then fly off the wagon to at $1495 destination fee and claim it’s too much of a profit for an automaker...

the hypocrisy knows no end...

This whole thing is absurd and a money grab by Lawyers which consumers will end up paying for, not Ford. Show me a law that says automakers are not allowed to make a profit on destination charges?

 

[Efthreeoh]

Yes, but sometimes it feels good to know that the offender gets to suffer, despite little reward for yourself.

From my recent experience, Military Auto Sales may be setting themselves up for such a suit by not honoring their low price guarantee, so far, hopefully they will change their tune. I don't want to be forced to resort to legal action just to get them to do the right thing (at least from my perspective), naturally I am sure they think that they are in the right.

However, suing for $3500 isn't really practical and allows them to continue to engage in the same behaviors with other military service members with no consequences. However, if you multiply 20,000 class members (assuming 5,000 customers per year over 4 years) times $250 in damages (failure to disclose conditions) and you might get their attention at $5 million plus costs. That kind of action can and does change behaviors. That's the point of a class action suit, it rarely (almost never) is fair for class members, but can definitely benefit the consumer in general when just cause exists.

This won't likely shape Ford's behavior in any positive way, but perhaps it might, I doubt it though.

LOL. All the lawsuit does is raise the price we have to pay on Ford vehicles. What is offensive about making a profit on the destination charge? Is there a law somewhere that the manufacturer CAN'T make a profit on the destination charge? If I was the judge to hear the case, I'd take the brief, wad it up, and throw it at the lawyer, and say "You have my decision."

I'd like to thank this woman for increasing the costs of products and services.

 

[Efthreeoh]

This whole thing is absurd and a money grab by Lawyers which consumers will end up paying for, not Ford. Show me a law that says automakers are not allowed to make a profit on destination charges?

Like Amazon doesn't profit from delivery charges. LOL

 

[Griffstar07]

I’ve never liked destination charges. It’s only 92 miles from MAP to my dealership. At $1,495, I’m paying $16.25 per mile to have my Bronco delivered to the dealership. God willing and the creek don’t rise.

If I was in CA, or FL, or TX I wouldn’t complain. You are getting a deal and I am subsidizing you. You are welcome.

 

[PapaWE]

Why are so many people here shilling for Car Dealerships and Ford? The anti-consumer sentiment on this forum is insane. Most of these threads are literally saying, "Companies can commit any type of fraud, lie, or mislead and the consumer should just not buy from them if they dont like it!".

Uh, how about no? There should be actual real world consequences for being a lying POS.

I dont want to hear ANYONE talk about capitalism and free market economies ESPECIALLY in an industry that is only successful because of constant government bailouts, gov backed sub-market rate loans, and regulations that entrench anti-competitive behaviors (looking at you dealerships). Capitalism for the people, Socialism for the corporations.

I agree with "most" of this. Ford themselves isn't being dishonest if they put it right on the window sticker what they are charging. However, our dollar is not going as far when it comes to what you get for the amount charged. The dealership is where this sort of behavior is magnified. They could eat that cost to get it to the dealership as an expectation of them having vehicles to sell. As far as most dealerships, (including mine) it's literally just a place to dump your money. Like the document fee. They act like that fee goes straight to the administrative assistant and that is the only way they get paid so there is no way to remove it. BS.

 

[PleaseDontRoll]

LOL. All the lawsuit does is raise the price we have to pay on Ford vehicles. What is offensive about making a profit on the destination charge? Is there a law somewhere that the manufacturer CAN'T make a profit on the destination charge? If I was the judge to hear the case, I'd take the brief, wad it up, and throw it at the lawyer, and say "You have my decision."

I'd like to thank this woman for increasing the costs of products and services.

Are people on this forum really that obsessed with Ford, an objectively mediocre auto manufacturer, that they believe Ford can charge (and get) whatever it wants? Fords prices are set based on their competitors. If they pass the suit price on to consumers their competitors win so in the case of these suits Ford eats the loss on the profit side.

 

[hotrodtim]

Should the destination fee be negotiated ? Or can the fee be negotiated?

 

[markregel]

Class Action Lawsuit Filed Over Ford Destination Charges
https://fordauthority.com/2021/07/class-action-lawsuit-filed-over-ford-destination-charges/

Destination and delivery charges are one of those things that car shoppers have come to expect and have little choice but to pay. Many assume that this charge is precisely what it costs the manufacturer to ship a vehicle to a dealership, though a new lawsuit – Mary Hawkins v. Ford Motor Company, recently filed in the U.S. District Court for the Central District of California – alleges that Ford destination charges are actually profitable for the automaker, according to Car Complaints.

The class-action lawsuit was originally filed by the owner of a 2019 Lincoln MKX, who purchased the vehicle new back in 2019. The plaintiff argues that she didn’t know at the time that the $995 Ford destination fee she paid generated a profit for the automaker, and claims that most consumers aren’t aware of this fact either.

“By virtue of the name of the fee itself, Ford misleads reasonable consumers into believing its ‘Destination & Delivery’ fee reflects the actual cost of shipping its vehicles to their ‘destination,’ not the cost of shipping its vehicles plus profit,” the lawsuit reads. The lawsuit doesn’t specify how much of a profit Ford makes on its destination and delivery fees, but alleges that this practice is “deceptive and unfair.”

The lawsuit also points out that Ford’s destination charges for the Ford F-150 have increased 42 percent over the last four years, while other automakers – including BMW, Infiniti, Audi, Mercedes-Benz, and Volvo – have only increased these charges by less than 20 percent over the same time period.

Ford isn’t the only automaker facing such allegations, however. In fact, the same lawyers responsible for this lawsuit also filed a similar suit against cross-town rivals General Motors and Stellantis last month.

So when my mechanic charges me for a part, by virtue of the name itself I can assume my mechanic is charging me precisely what he paid for it. How stupid can we be? I bet these money grapping lawyers and plaintiff probably listed eBay auctions with a shipping price more than the actual cost. When shipping vehicles the cost is variable and changing all the time, the precise cost isn't even known. We are doomed as a county if we think we can demand how much profit a company can make on anything. Why do you think this was filed in California? Communists courts will award lawyers millions over this nonsense. If you don't like how much Ford charges for destination, your free to NOT BUY IT and get something else. Its called competition! That part about Ford increased their price more than others is laughable. Is there a law against this? These lawyers probably went to Harvard, which is a testament on the state of higher education in the USA today especially IVY league.

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