Motorcycle/ATV dealer prep and destination fees??

[PNWguy]

I haven't bought a brand new ATV in nearly 20 years so I don't recall if Yamaha charged me a "destination fee" or if the dealer also tacked on a "dealer prep" fee.

Started the process of buying a new Honda Pioneer 500.  MSRP of $8999.  Every Honda dealer within 100 miles lists them at $8999 plus destination charge of $600.  I go on the ATV Trader site and dealers over by Seattle have them for a few hundred less.  One place lists them at $7995.    That same place also has a new 2015 model for $7144 and says USAA customers and veterans get a discount.

I send them an email asking for their out the door price.  My "special veterans" price went from $7144 as advertised to $8235 after they tacked on a $798 destination charge and a $400 dealer prep fee.  Not tax or title included, either.  I responded that I won't do business with a company that tries to take advantage of veterans.

I've asked around and some people say the destination fees are set by Honda and a fixed fee.  If so, then why not include it in the MSRP?  And why does every other dealer say it is $600 and the Seattle scam dealer said it was $798?

I've also been told that the dealer prep fee is due to the cost of uncrating, some minor assembly, topping off fluids, and making sure everything works.  At most a two-hour job or less.

Anybody have an idea of how much room there is for negotiation on these things?