It definitely sounds shady and I would talk to the service manager asap. Tell him everything thats happened, especially about the money under the table and the smoke. They should make the situation right.
Lower octane, please
There is a chance regardng the cigarette, if they smoke outside the shop that a butt was stuck to their shoe when they got in the car and that is why your smelling smoke. however if the butt isnt smashed.....
I'd take it to another dealer and refuse to pay for anything, especially after the whole reciept issue.
