If it costs 7k for an extended warranty, I'd look for a CPO or just get a new one. Your payment on a new one would probably only be a few hundred a month more, it would take at least a couple years to make up the 7k warranty cost, and the car would be worth a hell of a lot more.
Never understood extended warranties, at least for that much dough. Plus, from my experience, whatever breaks will invariably not be covered by your warranty.
Put another way, say a brand new M3 depreciates 20k in three years. A used one will depreciate probably 10k, plus your 7k warranty, plus maintainance that would be covered on a new one (or not necessary), and it sounds like a break even proposition to buy a new one, but you'll have a lot less worries. Take out the warranty, and a used car makes sense, but you have a bit more risk. My lease payment is $700/mo. with only like $3k down. The extended warranty would cover 10 months of my payments.
Last edited by MKE_M3; 12-09-2012 at 02:17 PM.