How common is this fee at Toyota dealers?

this is a standard practice in ALL dealerships i've dealt with (of course, there are exceptions.. such as lotus, Ferrarri..etc).

you a charged a fee upfront; if the issue is covered under warranty, you are getting a refund.
 
I never paid the diagnostic fee on my Toyotas or vehicles of other makes at the dealerships while under warranty. The second the warranty runs out, they'll charge the diagnostic fee and it'll be refunded if they perform the repair work, otherwise, they take the fee.
 

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