My mid-life crisis order from General Motors was pushed from the 2021 model year to the 2022 model year. There have been two price increases since the order was placed in January, but there is also a hidden price increase. The “destination charge” for getting the vehicle from the factory in Kentucky to the dealership has gone from $1,095 to $1,295, i.e., reflecting 18 percent inflation.
11 thoughts on “Hidden car price increase: destination charge inflation”
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Oh my goodness. I feel faint.
When I was a child I had a fever
My hands felt just like two balloons
Now I’ve got that feeling once again
I can’t explain you would not understand
This is not how I am
It’s a disappointing but important and appropriate economic observation and deserves a wider and deeper discussion, but all I can say for the moment is: “Pay the bill and enjoy with a part of the mind, analyze it with the rest.”
Wow…is that mid-engine machine for you or for a friend?
Didn’t know GM made a Honda minivan.
Complaining about a 200 freight increase is indicative that you will find that the maintenance, insurance, and tax cost quickly make this a regrettable decision. Perhaps you should let someone else take that ‘vette order number
The original post is not about having to pay $200 extra. It is about evaluating how much inflation is happening in the U.S. Remember that you’d invest differently depending on your estimate of the actual inflation rate.
The Administration says it pretty much doesn’t matter and is mostly a temporary little nibble you have to endure, just a blip, and other prices are doing down. Or it’s a figment of your imagination that will make Jen Psaki change the subject during a press conference, so don’t worry.
I haven’t been reading about what tenured and endowed chair academic economists have to say about it, but I will have the opportunity ask one of them very soon. And at least from this person I think I can expect an honest and thoughtful answer. I will report back.
I would think it would be more fun to go pick it up and avoid the charge all together.
“The original post is not about having to pay $200 extra. It is about evaluating how much inflation is happening in the U.S.”
Are you assuming the freight fee has any basis in actual cost incurred? If so why would freight not differ for a delivery to Tennessee versus Oregon? It is merely another component of what a manufacturer believes is the total cost of a vehicle that a dealer can obtain from a buyer. And right now the high demand and low inventory are drivers, along with inflation occurring (though not 18% across all domestic supply chains)
https://www.longtermtrends.net/m2-money-supply-vs-inflation/
It looks like high inflation generally follows high growth in money supply. Considering we have over 20% money growth I’d say 18% inflation is not too surprising.
The vette gets em wet!
Toucan FTW!!