zzdcar
Home
/
Reviews
/
Buying
/
Judge Rules GM Wasn’t Deceptive With Its Destination Charges
Judge Rules GM Wasn’t Deceptive With Its Destination Charges-October 2024
2024-02-19 EST 22:09:17

2021 Chevrolet Equinox

Destination charges have in the auto industry. Some customers aren’t too happy about it, especially the fact that automakers may be making a profit off of these charges that the companies often try to separate from the vehicle’s price. reports that a class action lawsuit against GM over customer concerns about GM making a profit over destination charges has been dismissed.

The in the Southern District of California and consisted of two plaintiffs, Robert Romoff from California and Joe Siciliano from New Jersey. Romoff purchased a 2021 Chevy Equinox and paid a $1,195 destination charge while Sicilino paid just $995 on his 2021 Cadillac Escalade. The said that the destination charge is “ generally understood in the automotive industry to reflect the manufacturer’s average cost of delivering one of its vehicles to a dealership. Line items are intended to inform consumers of the reason they are being charged.”

But the plaintiffs claim that they were unaware that GM made a profit from the charges.

“For that reason, consumers do not generally expect line-item costs to include hidden profit.”

However, U.S. District Judge William Hayes disagreed and dismissed the case. He argued that most consumers wouldn’t bat an eye at learning that the price of something they purchased resulted in a profit for the company that makes it. He then quoted the which requires that automakers disclose how much they make dealers pay them for delivery. He continued, arguing that the rule “no more suggests the absence of profit than the term ‘Destination Charge.’ Judges from the ninth and 10th circuit court of appeals agreed with him, weirdly saying that GM charges dealers and not consumers for destination charges. From:

“There is no allegation that GM charged the dealers a lesser amount than is represented to consumers, enabling the dealer to earn a secret profit from consumers,” the judges wrote in their Jan. 30 decision.

Disagreeing with the judgment, Romoff and Siciliano are appealing. They claim Hayes drew a conclusion about what most consumers would think too early in the proceedings and that he had a narrow view of what constitutes common sense in something like this. They also claim that Hayes ignored a California Court of Appeals case that a business charging more than what it actually cost for a service without customers being aware of it may be misleading.

Comments
Welcome to zzdcar comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Buying
Wow, A Tiny Jeep M422 for $6,500?
Wow, A Tiny Jeep M422 for $6,500?
It's Independence Day here in the U.S. and in honor of that event, today's candidate is a fightin' man's Jeep, albeit a little one. You'll need to decide - before the fireworks start - if its price makes you want to indepen-dance. When you were a kid, you may have...
Oct 20, 2026
Could This Custom Karmann Ghia Command $18,000?
Could This Custom Karmann Ghia Command $18,000?
If you like to let it all hang out then you'll love today's VW Karmann Ghia. Its price however, might just leave this crazy custom hanging. How would you like to be the guy that puts the stink in propane? You know they add that rotten egg smell to the...
Oct 20, 2026
Is This 1984 Porsche 911 A Steal At $12,000?
Is This 1984 Porsche 911 A Steal At $12,000?
If you haven't noticed, prices for air-cooled Porsches are going through the roof. Today's 911 may still be a way to get in on the ground floor, as long as you think it has a bargain basement price. Maintaining the dwelling metaphor, let's, for a moment, contemplate the attic, home...
Oct 20, 2026
Is This Jalop’s Propane Audi 200 Worth $2,800?
Is This Jalop’s Propane Audi 200 Worth $2,800?
Today's Audi 200 Avant is propane powered, just like a fancy BBQ. The question is, will its price have you saying now we're cooking with gas? Thar' she blows! Yes, yesterday's was a bit of a white whale, but that's not to say its 85% Nice Price win was a...
Oct 20, 2026
A 1992 Buick Roadmaster Estate for $3950?
A 1992 Buick Roadmaster Estate for $3950?
If you live by the mantra of go big or go home then you'll love today's Buick wagon, as it's family-sized. Of course, you'll still need to decide if its price is a big deal. The early '90s Buick Roadmaster Estate Wagon was a derivation of the Chevy Caprice/Olds Custom...
Oct 20, 2026
Auto Biography Is The Best Car Book Since Go Like Hell
Auto Biography Is The Best Car Book Since Go Like Hell
Car enthusiasts believe every car has a story, although I think most of us would have a difficult time managing to tie one together that involves a man beating a K-9 police officer with his own subdued dog. That's what Earl Swift has pulled off with , his fantastic tale...
Oct 20, 2026
Copyright 2023-2026 - www.zzdcar.com All Rights Reserved