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used car "warranty"

Speaking of warranties -- I'm shopping for a fun commuting car,
probably a 89-91 E30 3 series, and have spent some time with our local
BMW dealership.  Among the many little things that bug me there is the
"warranty" they put on their used cars.  It is good for 90 days or
1000 miles (doesn't take a lot of thought to realize which will come
first!) and, most annoyingly, it covers only 50% of parts and 50%
of labor on any needed repairs.  To me, this is a discount rather than
a warranty -- the dealership is basically writing off its profit and
perhaps just a little more on repairing whatever is wrong with the car
they've sold.  They stand to lose much less than the prospective buyer
if anything goes wrong.  The salesperson insists that this is normal
and reasonable and persists in calling it a warranty.

Is this typical?  Does anyone know what other dealerships do?  Anybody
else think it's sleazy?

Jim Newman