Man Goes To Dealership For New Car Warranty Service. Then They Charge Him A Diagnostic Fee: ‘I’ve Been Doing This For 30 Years’
'You pay big time.'
Buying a new car is supposed to come with peace of mind that one, nothing will break for a while, and two, if it does, it's covered under the warranty.
You don’t expect to have to pay for out-of-pocket repairs on a car that’s fresh out of the box. But apparently, some dealerships aren’t in agreement and are charging customers a diagnostic fee just to find out whether their warranty claim will be covered in the first place. And it's not always clear when or if you’ll get that money back.
Car Dealer Calls Out This Warranty Practice
In a video, car salesman @advantage.auto.group said he hears a new and frustrating dealership story nearly every day of his career.
"I've been doing this for thirty years plus, and every single day I hear a horrible, amazing, mystifying story about a new car dealer," he says.
The latest is customers bringing their brand-new vehicles in for warranty service, only to be hit with a fee before the dealership will even look at the problem.
"On your brand new car, if you take it in for a warranty claim, they charge you a diagnostic fee to see if your claim is covered under your bumper-to-bumper warranty," he says. "What the [expletive]."
"Unfortunately this is true," reads the text overlay.
He’s implying that most people he encounters assume their warranty means they’re fully covered and tend to be surprised when there’s an out-of-pocket cost associated with the visit.
What To Know About Diagnostic Fees
Diagnostic fees aren't new. The average fee runs anywhere from $40 to $400 or more, depending on the brand, with most dealerships pegging it to one hour of labor, FINN reports. Luxury brands like Jaguar, Porsche, and Land Rover tend to run $119 to $150 to start, while mainstream brands like Honda, Toyota, and Ford typically land in the $88 to $111 range.
What makes the warranty situation particularly galling is that dealerships may not immediately cover the fee even when the repair ultimately turns out to be a warranty issue. A dealership may withhold covering all or part of the diagnostic cost until the warranty claim has been verified, so customers can end up paying out of pocket upfront for something that should be covered.
One way to protect yourself is to ask upfront whether the diagnostic fee will be applied toward the cost of repairs and get it in writing before authorizing any work.
Owning A New Car Costs More Than Ever
Buying a new car is already expensive, and there are costs on top of that. According to AAA, the total annual cost to drive a new vehicle 15,000 miles in 2026 comes in at $11,577—and that's down $719 from 2024. The three biggest contributors:
- Depreciation: $4,334 per year
- Fuel: $1,950 per year
- Finance charges: $1,131 per year
Insurance, maintenance, tires, and registration make up the rest.
Commenters React to Salesman’s Warranty Revelation
“Yes very true 100 percent,” a person chimed in.
“Seen brakes replaced under warranty 2 times,” a second said. “That’s when we discovered they delivered newspapers.”
“Really 30 years and you didn't know this ? that's amazing!!!” another wrote.
Motor1 reached out to @advantage.auto.group via TikTok direct message for comment. We'll be sure to update this if they respond.
RECOMMENDED FOR YOU
Woman Goes To Gas Station Bathroom. Then She Sees A Strobe Light, Disco Ball—And A Button: 'EVERY Bathroom Should Have This!'
Saab Is Selling Some Of The Last Cars It Ever Made
Woman Buys A New Car. Then She Pays It Off Before Her First Payment Is Due–There’s Just One Problem: ‘It’s Insane’
Subaru WRX Sales Are Already Bouncing Back
Dealership Technician Gets Fired For ‘Over-Quoting’ Customer. Then He Pulls An Uno Reverse: ‘That’s What I Was Taught’
This Rare Lamborghini Revuelto Is A Tribute To North America
Man Lowers His Car Insurance Rate. Then He Discovers That He’s Actually Breaking The Law: ‘Don’t Make The Same Mistake As Me’