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Because it coulda been that relay to begin wiht, so it could only cost u 300 or 350 instead of 434.
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burnt headlight switch as well as a short in the harness where the wires were melted together
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I think the problem was probably the burn't harness! Even if there were no spanked parts, it was still $350 in labor. Im not sure how it could possibly only cost $300.
IMHO your sol. It isn't their fault that the auto headlights were not diagnosed as bad. You didn't say that they were bad, and it isn't their job to specifically check over every other car system. They noticed the problem and notified you. Nothing wrong with what they did.
However, going to a dealership on an out of warenty vehicle is asking for large bills. Do yourself a favor and find a reputable local garage that charges 1/2 the price in labor. Cars are cars. For non-critical work it doesn't really matter. Even then, ive seem some dealers botch some easy jobs.
As for the automatic headlights not working, and worked before, I would ask for an explanation of why this is happening. If they worked fine before and not now, it sounds like something they forgot to hook up, or damaged (did they incorrectly fix the wiring harness?).