If they sell the warranty for $1500 it is covering the average cost of repairs on that vehicle for the term, a commission for the sales person, overhead to run their office, and profit for the warranty company.
It's buying a lottery ticket. Sure you might win on the odd one, but over your lifetime, the vast majority of people will lose.
We have two out of warranty cars at our house. Driving cars that old I know that having a reserve fund to deal with proper repairs is a part of that equation.
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