Great informative video here from David Pogue of the New York Times explaining how buying refurbished computers and other electronics is a good idea:

http://www.cnbc.com/id/15840232?video=835562809&play=1

Bottom line: refurbished does NOT mean "used." These are new items that were returned either unopened or unused; they still have the same warrantees. You can save big bucks in many cases, especially on smaller items such as iPods.

Other important tip: buy these directly from the manufacturer, that way you're sure you're really buying refurbished and not used.

That's great info. I was considering buying a refurb iPod (can you believe there's a person who STILL doesn't have an iPod? Heh heh. I do borrow my gf's almost constantly though). This confirms that it's a good deal.

Sounds like the discount stems mostly from how offputting the title refurbished can be to many people, rather than any reduction in reliability.

Ryan

Actually subsequent comments on Pogue's blog indicate that some manufacturers do sell used computers as refurbished and they usually have a shorter warrantee (90 days versus 1 year). So caveat emptor -- it sounds like in general refurbished electronics are a good deal but there may be some risks involved.

I agree 100%. Refurbished can VERY MUCH mean used product and the kicker is that if it's labeled refurb, they don't have to disclose WHY it is labeled such.

Yeah, I was going to say.

I held out for a good "new" price on the lcd tv/monitor I just bought because newegg doesn't allow returns for refurbished lcds, even with dead pixels.

On the other hand? Totally go refurbished for Kitchen-Aid stand mixers, because they are little tanks. (If you can't find one used for a decent price. Which I couldn't. Refurbed was cheaper.)

Actually, though, on the computer manufacturer websites I checked (Apple, Lenovo, Dell, Sony), they do disclose why it is labeled as refurbished and lay out the criteria. Some make a distinction between "closed box" products and "refurbished" products. For example Lenovo does this. "Closed box" products were returned unopened in their original sealed containers, either because the wrong product was ordered or a company over-ordered and returned a bunch of units. Those would obviously be the safest deal.

From the Lenovo website:

What does "closed box" mean?
Notebooks and Desktops from orders that were canceled or returned unopened.

Closed Box Outlet Notebooks and Desktops meet the following criteria:
Order canceled and never shipped. Customer returned Notebook or Desktop unopened. All Notebooks and Desktops carry a limited Warranty.

What does "Refurbished" mean?
Notebooks and Desktops that meet original factory specifications through retests. Repackaged.

Refurbished Outlet Notebooks and Desktops meet the following criteria:
Customer did not turn on or fully boot Notebook or Desktop. Customer may have turned Notebook or Desktop on. Customer may have used Notebook or Desktop. All Notebooks and Desktops are fully tested to original factory specifications and carry a limited Warranty.

I bought my Cell phone refurbed from ATT. $60 vs. $200 new.

Currently my 42" 1080i HD plasma hanging on my wall, my Moto Q9h smartphone and my 13.3" Macbook were all bought refurbished. I saved a boat load of money doing so and all of the items appeared new in box when I got them. The Macbook (and all Apple refurbs) even come with a full 1 year warranty.

I bought my current laptop refurbished. Seems pretty good so far!

Many credit cards also offer warranty extensions if you purchase a product using the card - It depends on your agreement but from my experience pretty much any gold or platinum card will double the manufacturers warranty... this is expecially handy for refurbished products.

My SO bought an Apple MacBook Pro directly from Apple. It was top of the line [i don't know much about computers i admit, but Hubby is still bragging about video cards and such]. Anyways it was refurbished so its was HUNDREDS of dollars cheaper and it had a full warrenty. We've had it for a year with no problems.

personally i think that people have to get over the 'used' stigma, like everything had to be pristine. Do you really think that everything you buy was barely touched until you picked it up? I've worked in retail, dozens of people have handled everything you buy before you buy it. and if they muk it up we just clean it and put it back out.

You can find great buys, both brand new, and refurbished at Slickdeals.

http://slickdeals.net

I know of a couple guys buying brand new Dell computers at really good prices and turning around and selling them on Ebay and Craigslist for about $150-$300 profit.