New Jersey resident Kimberly Enright is seeking to bring a class action challenging the “destination charge” paid in leasing or buying certain vehicles.
In her complaint against FCA US LLC and Stellantis N.V., Enright challenges a $1,495 “destination charge” she claims she was assessed in connection with her lease of a 2019 Jeep Grand Cherokee from an authorized New Jersey dealer.
As alleged in Enright’s complaint, the destination charge is the amount a buyer must pay for delivery of the vehicles. She asserts that since at least 2015, the defendants have added a destination charge to the price of new Chrysler, Dodge, Ram, Jeep, and Fiat vehicles.
This destination charge is not included in the manufacturer’s suggested retail price (MSRP), the price at which the vehicles are advertised for sale. Instead, the charge is often mentioned along with taxes, license, and registration, which creates the impression that the automotive manufacturer has no control over the amount of the charge. Thus, “[c]onsumers, such as Plaintiff, have the reasonable expectation that they are covering Defendants’ cost for the delivery of the subject vehicle when paying the Destination Charge as part of their Class Vehicle lease or purchase.”
However, Enright further contends, the defendant automakers include a significant amount of profit in destination charge. As the charge “has little correlation to the cost of delivering the Class Vehicles to their intended destination,” she argues, it has “become a huge profit center,” allowing Defendants to “extract hidden markups on the sale of the Class Vehicles from unsuspecting consumers.”
Enright alleges violations of New Jersey consumer laws and unjust enrichment. She seeks remedies including restitution, disgorgement of gains related to the alleged misconduct, and damages.
The case is Kimberly Enright v. FCA US LLC and Stellantis, N.V., case number 3:21-cv-19364, in the United States District Court for the District of New Jersey