For me it’s more about a peace of mind. Sure, I can afford a $3k or $4k repair, but I prefer to know that my liability is limited to the $2k warranty premium (plus possible deductible) over years 5 and 6 of the car life. If I didn’t have this assurance, I would probably sell the car, but I know that I would pay way more in sales tax plus the annual property tax (Virginia), let alone the depreciation. So the extended warranty is what’s keeping me from buying a new car and spending $20,000 over the same 2-year period. $2k vs. $20k is pretty simple math.
When was the extended warranty price reduced to $2k? I thought it was $4.5-5.5k?