Extended warrantees work like so:
During the first years of your ownership, your manufacturer’s warranty covers anything that might fail prematurely as a result of design and/or manufacturing defects of any kind. The probability that design and manufacturing defects if there are any will happen in the first years, the “infant mortality” years, is high. If something is wrong, it’ll fail early.
In the years beyond that manufacturer’s warranty, the probability of failure due to design of manufacture is extremely low.
When the car begins to reach old age, failures become more commonplace.
This is known as a “bathtub curve”, because, well, it’s shaped like a bathtub. Extended warranty’s cover that period at the bottom of the tub where failures due to design or manufacture are extremely unlikely. And they make sure they build in exclusions for normal wear items and for items that could be caused by neglected maintenance.
Now, you have basically bet the warranty company that you will experience a catastrophic failure in excess of $1500 during that period that would be covered by the warranty when such a failure is the very least likely to occur. The warranty company is betting you won’t. The odds are greatly in their favor.
Here’s an idea: get the money back, put it in a separate bank account and call it “my warranty account”. Then, if you DO experience a failure, it’ll be “covered”. And if not, you still have the money!! Why give it to somebody else in case something breaks in he years ahead and then have to try to get it back from them if it does?
I still think the finance manager deserves a punch in the nose, although I’m not advocating doing so. Instead he’ll probably get a bonus.