Extended warrenty is a big money maker for them as they know the life of a product their job to know and by selling extended warrenty for a product that is never used just money in the bank.
Plus if you do need them to fix sumtin the intrest from all the extended warrants being sold pay for your fix.
I never use to get it but on the last car I bought I got it because I broke it down in per payment and it was like 3 bucks a month for the payment life. This made it much easier for me to get figuring how cheap it was 3 bucks is spent on a buger.
PS you happy with the makeover?