How many KM you have on it now????
You might want to consider putting that money into an investment. This way, it will grow and if you have repairs, you've got the money.
It's a gamble, but if you've owned the car for a while, you know how the car is. Drive it carefully and it will take care of you.
Purchasing a used car, I'd get the warranty because you never know how the car was driven. I had a BMW e36 and was frustrated at how much and how often that car broke down; It definitely wasn’t as reliable as my Acura. If it wasn't for the Extended warranty, I would have lost even more money. The car looked mint, inside and out. 1 Owner, serviced and bought from the dealer that I bought the car from. Who would have thought it would turn out to be a POS.
If I keep my current BMW past 3-4 years, I probably won't get the warranty. Mine's all highway and I'm gentle with it. That car has been good so far (only two minor repairs).
I'm considering a new Acura TL 6spd Manual, and I think the 7-8 Year extended Bumper to Bumper warranty is only $800.00. I'd buy that in a second if I do get that car.
Do what you are comfortable with. You can pay upfront for the security, or you can gamble and take your chance. Evaluate your car and figure out if it's a reliable one, and how hard you drive it. That will be the deciding factor.