So I got this letter that my car could need brake booster repair service so I took it in.
The SA tells me that they'll charge me $175 to diagnose if I do need that "warranty" work out not. Seriously?

 

Can you post the letter itself? Was it from Lexus or the dealer? Did it state that there was a technical service bulletin or service alert? It does sound like BS if they send out random notices then want to charge to diagnose it. They could send out a letter stating you could need any random part repaired then scam you into paying for diagnostics. Many independent shops will do such diagnostics for free. I cannot believe they demand $175 just to look at it. That is criminal.
Are you a regular service customer of this dealer? If so you should think about finding a good independent shop to do your future service.

 

Yes the letter is from Lexus directly asking you to take the car to the dealer based on certain conditions. Now my fiance drives the car more than me these days so I couldn't depend on her observations. So I scheduled an appointment and the dealer told me that they'll run a diagnostic check for codes and if the car needs the brake booster then they'll waive the fee. If not I'll have to pay them.
And no, I have a great independent shop that I took my Prius to and now the Lexus. Don't want to pay three times the labor cost. Lol.

 

$175 just to scan for codes? That *is* criminal. Don't the auto parts store do that for free? Or you could get one of those OBD2 Bluetooth deals for your phone.

 

I will not get into the labor rates $50/hr or $125 per hour. And more so on how much is retained by the shop and how much is given to the mechanic. Or even if the shop is a dealership or not.

When a vehicle is brought into a shop for repair or analysis, the mechanic needs to be paid for the labor. Lot of people fall into the trap as they think the mechanic is the owner (it is true for a small mechanic shop). For a larger garage, where the mechanic works, the mechanic needs to be compensated.

The labor then has to be
a) recovered as a warranty expense ... needs determination/confirmation ... the parent company then approves labor and parts.
b) recovered from the customer.
c) The shop owner eats the labor ... increases the cost of doing business and then recovered from 'all' customers by upping the rates.

I can't speak for the dealership, but it seems they are covering their base by securing option "b". If option "a" comes through they will get the money from parent company. We can discuss option "c" but personally I am not in favor of it as it costs the innocent.

The key question is ... What does the bulletin state .. all vehicles or vehicles meeting a certain fail signature. If the needed fail signature is not present, the warranty labor/parts may be denied by the manufacturer.

Salim

PS: Labor rates are charged in 1/2hr increments and always rounded up.