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From a business prospective it makes sense assuming you did not recently move to the area. Just my 2 cents.
Dealers make less money on warranty work than walk in customers. So... If you buy a car from dealer X and ask Y to service it and you owned the business what would you do? Give the better loaner/demo (limited supply) to your own customer or the guy who bought elsewhere?
A friend who owned a dealership once told me, " Your buying the relationship he car is free."
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