Subaru Extended Warranty

I would personally pass. However if it makes your ownership more comfortable it may be a fit especially if you drive 12k miles/year or less. If you drive more go without.

I would still bargain more on it and see what happens.

Alternatively stick the $1300 in a bank account for repair. The likely case a good portion if not all will be there in 3yrs/36k miles. That is what the warranty company bets and wins the majority of the time.