Not true. We've had coverage on 3 major repairs on the last two vehicles we've had. One repair cost $8600 and our out of pocket deductible was only $250So, I don't work at a dealership anymore, but I will tell you that an extended warranty is only meant to bring in more money to the dealership as an add on cost. Extended warranties are hardly ever used by the consumer because the vehicle typically doesn't experience issues for years after it was built.
Most of the manufacturer warranties that come with the vehicle cover the vehicle for a decent amount of time/miles.
A lot of people think that it is the sales person who will rip them off, but it is really the finance department that trys to upsell tons of stuff, "including extended warranties ".