As a trained auto dealership F&I Manager (Finance & Insurance) I can tell you why you should have an extended warranty:
1. Peace of mind. #1 reason why people buy extended warranties.
2. It turns a variable cost (the cost of future repairs) into a fixed
cost (the price of the extended warranty right now). This is very
important. #2 reason why people buy extended warranties.
3. All factory warranties are limited...no matter what the salesman tells
you. The real troubles occur outside of the factory warranty (why do
you think they limit them in regard to time and/or distance driven?)
Not buying an extended warranty is a real roll of the dice. Remember, EVERYTHING is negotiable in the F&I room (where most warranties are sold). Most people think the dealing is done once they walk out of the salesman's office and into F&I. Not so. When being pitched on a warranty ask how much they paid for it, ask for proof of what they paid and then offer $200 over the dealer's cost. Never ask them to throw it in...always get all the numbers up front...otherwise they will structure the deal in such a way that you get the shaft either on your purchase price of the car, your trade in, your interest rate or the cost of the warranty. Believe me.
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