I bought a 2005 and it already had an extended warrenty, but I had to transfer it for $100. Mine covers all powertrain. I have already used it twice and if I didn't have it, I would have already spent over 2K since I got it which was 6 months ago... so I feel that they are a good thing myself.
I got an extended warranty thru Fidelity I think it is and it was $1500 . . . I was still under the factory 3y/36k one but this one extends for 7y/70k. Probably a good idea to pick one up especially if you aren't going to mod it too much. But that sounds really expensive for just one year.
Bite the hand that feeds you . . . you've had more than enough to eat already.
Read what it covers and what it doesn't carefully, including any clauses relating to modifications and extreme use. Depending on how you plan to use your rig, it may be a good deal. However, $1,000 for one year seems really high, but you didn't mention the mileage, and at 5 years old, I suspect any warranty is going to cost more than one purchased on a newer or still under warranty vehicle. OH, and you want to be sure you understand not only what's covered, but if there are restrictions on who handles the work, etc.
If you are adding that warranty to the financing it is costing you more like $1500. If anything goes wrong with the vehicle in the next year, you have already spent $1500. The question you need to ask yourself is do you think you will incur a repair bill larger than $1500 in the next year? Think about this, even if you had a repair that cost $2000, it will really only be $500 more than if you had gotten the warranty. IMHO $1000 for a one year warranty is not worht it.
"I've got two things in this world, my balls and my word and I don't break them for no one."