Per this 'News' Update they posted back in Aug '11:
Warranty Update: Second Owner Responsibilities | News | Kel-Tec
Quote:
Paragraph 3:
That said, all Kel-Tec owners may still enjoy great service, however if you are not the original owner we will ask that shipping be paid in addition to a flat $40.00 labor fee. Depending on the severity of the repair we may need to charge for parts as well. This applies only to those who are NOT the original owner of their weapon.
Paragraph 6 & 7:
As yet another courtesy, we may be able to reimburse up to $35.00 of shipping charges IF the difficulty can be duplicated by Kel-Tec (be sure you aren't limp-wristing before sending your weapon in) and the following criteria are met:
Shipping refund requests must be provided in writing, along with a copy of the original shipping receipt, and must accompany both the firearm and the bill of sale at the time of service. The firearm must meet Kel-Tec's criteria and be approved by the servicing gunsmith before eligibility will be considered.
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So even though they're charging $40 for repairing pre-owned pistols, they're reimbursing $35 in shipping costs, if requested in writing.
If you send it in via an FFL, rather than shipping it yourself via FedEx/UPS, it would NOT cost $35... More like $10-$15.