Extended Warranty on Certified PreOwned?

I just bought a certified preowned 2007 (1st put in service in late 2006, so it's nearly 4 years old). Love the car!

At the dealership I was offered a Platinum Extended Warranty to "wrap around" the 7/100K powertrain warranty for $1200. Seemed high, so I passed on it, figuring I'd ask Troy to quote, only to learn that for used vehicles, the extended warranty must be purchased from the dealer that sold the car. Interesting...

I know the pros and cons of extended warranties (obviously they are priced to make $$ for the company selling the warranty), but I wonder what a "reasonable" or "fair" price should be for the privilege of getting the extended warranty for 3 years (since the car is nearly 4 years old). I wouldn't be likely to hit anywhere close to 100K in that time. I presume the price of these things is negotiable at the dealer, just like nearly everything else.