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That is pretty lame overall. I wouldn't have expected such poor service from tirerack. They should have at least processed your reimbursement in a timely manner. However, a good portion of this is a part of dealing with an online vendor that does not have direct local representation. If I thought I could get the same product locally for just $49 more I would go that route for sure (did you include sales tax in that btw), but in my experience, the math has not worked that way and buying locally almost always means a significant premium in price.
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