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Time to perform the 1,200 mile service
The time to perform the service probably has little to nothing to do with how long they want the car, it is a technician scheduling issue.
In reality the service takes closer to a hour, I've watched it. What they don't know is which hour of the day a tech will be available and they don't want to commit to a specific hour of the day in advance. Given the tremendous variability in the time to perform different repair/service jobs it really isn't possible for them to know days in advance exactly when a specific hour will be available to do your 1,200 mile service.
And since techs are paid by the job the techs need to be busy pretty much all the time to make a decent living. The dealer can't afford to have "extra" techs waiting around to service one hour jobs.
They want your car there for the day so they can be confident they'll be able to find the hour to do your job. After all, if you came in for your one hour job late in the day and they failed to get it done, because they weren't finished with someone else's job that was promised that day, I suspect you'd be pissed! If they didn't get the other job finished because they pulled the tech off that car to do your one hour service the other customer would likely be pissed. Having your car for a full day increases the chance you or someone else won't become an unhappy customer.
Seems like a fair arraignment to me! After all, some day you may be "the other" customer!
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