[submariner409]

Take the $1600 and put it in your own money market account. Add a bit now and then if you can or if you feel like it.
You'll have the money and the interest, not someone else. Done properly, at the end of your own warranty period you might have as much as $8,000 in the bank.

There are a whole lot of exclusions in a third party extended warranty, so the chances of the selling dealer putting out anywhere near the price of the warranty over the term are few and far between.