An extended warranty is not really a warranty as such. It is an insurance policy.
The real fact is that the vast majority of new vehicles that are sold will never even return to the selling dealer for any reason. That includes maintenance, warranty repairs, inspections, or whatever.
The gamble is the cost of the warranty versus the cost of a major repair. If a transmission goes out after the factory warranty expires but the extended is still in place, it will pay for itself.
There are some other factors to consider. How mechanically inclined are you? Are you able to take care of maintenance and small repairs? If so, an extended warranty may not be beneficial to you.
But, with today's shop labor rates going past the $100/hour rate, even small repairs can get expensive quickly. Modern high tech electronic systems can get really expensive as well. As such, an extended might be worth considering.
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