I told my dealer I was getting ready send $480 to KMC for a 3 year extension and he went ballistic! He offered me the same official KMC extended warranty for around $290 (can't remember exactly)! So check with your dealer, sometimes they can cut you a better deal than the manufacturer, on the SAME warranty. If you don't trade-in ever 364 days, I feel it's stupid not to get one. No, it doesn't cover standard service (i.e. oil, etc.), but one minor part could be an outragous expense.
A couple of examples... I had one of the small plastic reflector "dish" inside the headlight break off. Since it screwed into the housing, I figured I just order one and replace it myself. NOPE! Had to get a complete $416 headlight housing (glass lens, adjusters, everything). I've gone through two... warranty claim! Two $120 ignition switchs... warranty claim. I could go on, but you get the idea.
Right now, I'm getting a COMPLETE transmission (after 65K miles, normally $1800 P&L), because my 5th gear dogs are going out. I made several claims that had paid for the cost of the warranty, several times over. Even though there's just a year left on it, I'll get about another $150 for trade-in, because of it.
[This message has been edited by redelk (edited 23 December 1999).]