News Flash: Best Buy's Extended Warranties Are Rip Offs

Most savvy gadget shoppers know that extended warranties at places like Best Buy are the equivalent of lighting money on fire, but now HD Guru Gary Merson has done some investigating to show just how bad they are.

Best Buy's sales pitch often differs from what you'll encounter if you actually try to use your warranty. For example, they say you'll get a new TV if yours needs to be repaired four times. In reality, they can toss you a refurb or rebuilt model. They also claim that they'll give you a loaner TV, but that's nowhere in the contract.

The whole thing is worth a read, but here's what to take away from it: avoid extended warranties at all costs. [HD Guru via Consumerist]