That was pretty much the case. I already knew the trouble code prior to talking to the dealer - P0420: Catalyst System Efficiency Below Threshhold (Bank 1). They told me if the problem truly was the cats, they would be replaced - parts and labor free of charge. In addition, they said "because it's the emissions system, warranty covers it until 80k miles" (even though my warranty ran out at 36k). When I dropped it off at the dealer they gave me the same story - they told me they would first do a "diagnostic" and if the cats were bad they would be replaced free. I don't know if the "diagnostic" is anything more than reading the codes from the PCM, but their verdict was that the cats were bad. They told me they would have to order them and it usually taked 2 weeks, but they actually came the next day. They called me around 4pm and said my car was ready. No more check engine light, and it passed inspection. Almost seemed too good to be true!
