Telco:
What are you basing those numbers on? My Charger is a bit over 3 years old, and has and will continue to be well cared for. Were you to make that statement about a 10 year old car, I could see those figures being more in line. It makes sense that the manufacturer has to have an end point to such a policy.
An AC, trans, transfer case, differential repair, etc will easily make what I paid worthwhile.
Should it come to the point where my Charger needs a repair that exceeds its value, I can count on having FCA kick in the book value, and then I can pay the balance if I choose. At the rates dealers charge these days, it does not take many covered repairs to get ones money back. Of course, if the vehicle in question runs forever like a top, one might only enjoy the piece of mind of the policy.
In my case, I plan to have my car for 10 years, so that is $250 a year to know that any covered repair will cost me no more than $100. If there are multiple issues present in a single visit, that it even better.
Not counting the FCA Lifetime on the Charger, of the three extended warranties I have bought to date, only one failed to pay for itself. If money is no issue, and the owner can cough up a couple of grand at any given moment with no trouble, then the extra warranty is probably not a good choice.
Obviously, if one plans to get rid of the car before or when the bumper to bumper warranty is up, that is another no brainer to not buy.
When I bought my 1995 Taurus SHO in 1997, I bought a 5 year 100K policy (third party, not again though) for $1250, and got back $4500 out of it. The Yamaha V6 in that car was $9000+ to replace. The engine was trouble free, but I got the trans rebuilt with it along with a few other goodies right before the policy expired on time. That bill would have cost me $2500.
Not counting a $100 deductible or two, I figure $.61 cents a day (as long as I have it 10 years) is a pretty good gamble.
Don