I've always wondered about this. It's like the airlines and fuel surcharges. You price your product to take into account the cost of what it takes to deliver the product or service. Showing an advertised sales price to lure a customer in and then nickel is dime them with additional fees is bush league. If it cost you an extra 875 per car, up the base price of the car by 875.^ What he said. As I understand it, the destination fee is an average cost, meaning it costs way more than $875 to ship an X5 to California and way less to ship it "down the block" to the BMW dealer located in Spartanburg. As such, everyone pays the flat fee, no matter where you take delivery.