I would jump on the job in a heartbeat for that kind of money. Meaning it would be good pay. But when you think about what it takes to make a living as a mechanic anymore, I wouldn't say he is overcharging. It's all about who you have to work with in your area. I would take this oportunity to shop around a little for local mechanic talent.
Yep, being an auto tech these days is all about warranty work. I know a couple of guys that have moved on to other jobs, because they couldn't make any money at being a mechanic.