Yelp Review - Bait and Switch Tactics by Subaru of America and Grayson Subaru, Knoxville, Tennessee
During our 9.3 years of ownership, our 2017 Subaru Forester has already required FOUR COMPLETE AIR CONDITIONING SYSTEMS (the original factory system plus three full replacements). On average, our Subaru has required a new air conditioning system every 2.3 years!
This is a fully acknowledged systemic Subaru design defect involving internal condenser corrosion and premature compressor failure. Because of that defect, Subaru of America previously provided two full replacements at no cost to us and with no upfront diagnostic fee.
Initial conversations with Subaru of America's corporate headquarters indicated that this fourth repair would also be fully covered due to the same systemic problems -- and that was their first lie.
Service advisor Joshua Byrge at Grayson Hyundai Subaru explicitly used that corporate history and promised my wife that the $334 diagnostic fee (a fee we had never been charged in any previous repair) would be completely safe to pay because Subaru corporate would cover the full repair/replacement and refund every penny of the diagnostic fee with zero out-of-pocket cost. We trusted that explicit representation and authorized the work.
What we actually received was a single-line, completely unprofessional "estimate" for $1,694.54 for the compressor only -- with no itemized breakdown, after we were told there was no price ceiling whatsoever.
Subaru of America then offered only a pitiful $1,000 partial and fixed compensation. They also required that our $334 diagnostic fee be deducted from the $1,000 goodwill compensation, leaving only $666 toward whatever our total unknown cost might be from having Grayson Subaru of Knoxville, Tennessee, replace our A/C system.
This is a classic example of a BAIT AND SWITCH CON - first promising us that the fee would be covered, but only after paying the fee, we find out that they would only cover some of the cost if we took their offer of a net $666. Bear in mind that the last two replacements by Subaru did not require any diagnostic fee, and they covered the full costs for the same systemic problem with their badly designed A/C systems.
We refused the open-ended risk. Instead, we took the vehicle to a highly respected independent Subaru master mechanic in Sevier County (35 years of experience solely specializing in Subarus, with a sterling reputation). He opened the system and confirmed it wasn't just the compressor -- the condenser and expansion valve were also damaged and contaminated. He replaced all three major components, plus a full flush and refrigerant, for a flat fee of exactly $900.00, with no diagnostic fee.
However, this is proof positive that Grayson's $1,694.54 quote was just ANOTHER BAIT-AND-SWITCH -- Subaru dealers routinely add $800-$1,800 for the condenser and expansion valve once the system is opened, pushing the total air-conditioning repair cost to $2,500-$3,500. Grayson Subaru would have come back demanding thousands more, with our SUV in pieces.
Subaru of America has still not responded to our detailed executive escalation letter, which was sent directly to the President/COO, VP Customer Advocacy, VP Service & Quality, and the president of Grayson.
I've now filed formal complaints with the Better Business Bureau, the Tennessee Motor Vehicle Commission, and the Tennessee Division of Consumer Affairs.
Subaru's short-sighted refusal has already cost them enormously. We had planned to purchase another new Subaru in January 2027, which would have generated ~$22,000 in combined gross profit for Subaru and the Grayson dealership. Across our next 4-5 vehicles, our household will now purchase from other manufacturers.
Subaru and Grayson have voluntarily destroyed nearly $100,000 in our lifetime customer value -- all to avoid spending roughly $800 at wholesale on their own known defect.
Grossly incompetent management.
We are now permanently finished with Subaru and with Grayson Hyundai Subaru in Knoxville. That loyalty we once had is now 100% destroyed.
Posted May 30, 2026. read more