You should never buy an extended warranty. They have huge margins for those that sell them, and there is a reason for that. I bought a Jeep back in 94 with a bumper to bumper warranty. The steering wheel hub fell off (before airbags) but since it fell off and didn't break - not covered. The steering damper failed at 13K miles - not covered because it is considered a normal wear and tear item. The final straw was a problem with the power windows. The wiring failed - again not covered. They covered the switch and the motor, not the wiring. I was able to cancel and get some of my money back.
I disagree. While extended warranties for most things aren't worth the money, a warranty for a vehicle is, especially the one sold by the manufacturer. You can't touch most repairs these days for less than $500-$1000 so 3-5 trips to the dealership for repairs more than pays for that $3000 warranty. And if your vehicle has all the fancy options and features then it's a no brainer. I've seen some audio head units costing upwards of $4000. Just read the warranty to know what is covered before you buy it.
You can also shop around for a warranty, you don't have to buy it from the selling dealer.
