Extended warranties, in general, get about 12% in claims, so they make 88% profit. So the odds are with you if you take the money you would have spent on an extended warranty, stuck that into a bank account an used that for future repairs (probably while adding a little as you go as you know you will need oil changed, new tires, etc.). So I wouldn't buy one unless you are one of the unlucky ones who seems to attract vehicular lemons and you are almost certain to need that warranty (some people just have bad karma with car repairs). I actually paid for some extended warranties for some laser printers I've recently purchased figuring that $5-15 might be a good buy given I seem to go through inkjeta like crazy, had 2 replaced under warranty and seem to need to replace them with new ones right after the warranty expires. But I never pay for extended warranties for cars, computers, and most electronics. I figure it's better to put that money into a general emergency fund and use it when something breaks.
That said, if my volt blows an engine, it's a great excuse to go car shopping again
