Class action lawsuit filed over Ford's destination charges

[Nite93]

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.

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[Monster1926]

GM is also getting sued for this. MAP is 2 hours away from my dealer. $1500 to move it 2 hours is ridiculous.

 

[jxc]

The only number that matters is THE BOTTOM LINE. Bunch of sharks looking to line their pockets over nothing. Lawyers get rich and the customer eventually foots the bill. His suit is a load of you know what.

 

[Brongo]

Like every class action lawsuit the lawyers make out and the consumer gets pennies.

 

[vrtical]

I believe that pooled fees are distributed across the dealer network to some extent, but not positive.

 

[Philvis77]

It sucks the lawyers are the ones who make out like bandits, but this is a bogus charge. It was $1000 in her complaint, and now it's $1500. Complete ripoff charge.

 

[flip]

Yes, everyone (dealers) pay the same so those further from the plant aren't at an economic disadvantage. It is taxable and was either done because they were forced to disclose it OR they did it because dealers love advertising the vehicle price then in the super fine print says price does not include D&D, acquisition fee, tax, title, license, blah, blah, blah.

 

[Heffe66413]

Destination charges are an average cost across the board. Ford could easily add it to the cost of all vehicles and advertise no destination fee. Bottom line is you don’t have to buy a Ford, you are not forced to pay a destination fee. But when you do buy one you agree to it as part of your negotiated cost.

 

[Southern Girl]

Destination charge on F150 is $1695, btw.

 

[mpeugeot]

Like every class action lawsuit the lawyers make out and the consumer gets pennies.

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.

 

[Brocked]

It’s not a hidden fee. If you don’t like it, don’t buy it. If I lived next door to MAP, I guess it would bother me more.

 

[Ranger6G]

Good

 

[Bestdayever]

Destination charge on F150 is $1695, btw.

Yes, For delivery in Kansas City Mo. or Honolulu Hi.

 

[Headsong]

Destination charges are an average cost across the board. Ford could easily add it to the cost of all vehicles and advertise no destination fee. Bottom line is you don’t have to buy a Ford, you are not forced to pay a destination fee. But when you do buy one you agree to it as part of your negotiated cost.

And then those far from the plant would sue for discrimination when they pay 3500.

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