If you've spent any amount of time shopping online recently, you've no doubt noticed that the market for used products that have been repaired by manufacturers or third party shops is booming. Whether they're called "refurbished," "reconditioned" or "remanufactured," the concept is the same. Products that were demo models or sent back to a manufacturer, either because the original buyer didn't want them, or due to minor defects or cosmetic damage, are spruced up and resold, often at substantial discounts over the cost of a similar item purchased new. For example, Apple Computer's online store sells a "Certified Refurbished" 30GB iPod for $179; the model originally sold for $299. If you're looking to refurbs to cut costs this holiday season, here are some tips to make sure that great deal doesn't turn into a disaster:
- Buy directly from a manufacturer if possible. Many refurbs are sold by third parties via eBay or other venues. Third parties may offer little in the way of support or protection if something goes wrong; manufacturers, on the other hand, have a vested interest in protecting their brand's good name, even when selling refurbs.
- Stick with brands that have proven reliable in the past. Remember, you're buying a product that, in some cases, has already broken once. You want to minimize the risk that it'll happen again.
- Get a warranty. Many manufacturers provide coverage of 90 days or longer on refurbs -- some even offer warranties on par with those offered with new products. That's important, in case the repairs didn't really fix the original defect. Some manufacturers, such as Apple, even offer extended warranties on refurbs (though, of course, the usual caveats about such plans still apply).
- Don't count on your credit card for extra protection. Many of the automatic warranty plans offered by card issuers specifically rule out coverage for refurbished products.
- Get as much information as possible about the product's previous life. Some companies, such as Dell, let you choose from among several categories of used merchandise, including refurbs, new products that were shipped out but never opened, and equipment with "cosmetic blemishes."
- Know what you're buying. Refurbs are often older or discontinued models, so factor that in when checking to see if you're really getting a good deal. In the iPod example above, the model being sold is not the current version, and lacks some recently added features. Not only that, but the latest 30GB iPod goes for $249, not $299, so you're actually only saving $70 by buying a refurb, not the $120 touted by Apple. It might still be a good deal if you'd rather have an extra $70 and can live with last year's technology, but it's not quite the bargain Apple makes it out to be.
- Don't expect perfection. Refurbs sometimes have scrapes and scratches, and often come in stripped down packaging; hard drives might not have been completely wiped of the original owner's data. And you should assume that any parts that tend to wear out over time, such as hard drives, batteries or camera shutters, may have an abbreviated lifespan.
Finally, if you're planning on giving a refurbished product as a gift this holiday season, you're in the clear. No less an authority than etiquette expert Amy Dickinson has given refurbs the thumbs up: "I think it's wonderful," she says. "It probably enables people to get more gift for the money. Who wouldn't appreciate that?" Just make sure that you really are giving a better gift -- and not just cutting corners by getting a discount on a discontinued product your recipient doesn't really want.
-- MP
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