Refurbished electronics: A bargain shopper's guide

TVs, digital cameras, laptops, and other electronics gear that have been returned to a retailer or manufacturer, supposedly restored to good-as-new condition, and then re-sold at bargain prices are starting to look respectable—especially to budget-conscious shoppers. Refurbished goods (also called "reconditioned" or "remanufactured") are even being touted as "green," since they might otherwise be on their way to the landfill.

It's not just fly-by-nights selling gently used gear. Last fall, big-box retailer Target's web site began offering "pre-owned electronics," starting with seldom-discounted Apple iPods. Crutchfield.com, a reputable vendor that has been top-rated in Consumer Reports' annual Ratings of best electronics retailers, sells returned electronics from GPS to TVs at its online Outlet Store. Amazon.com, another consistently well-rated retailer, has been selling refurbished gear on its warehousedeals.com site since 2004.

Among major manufacturers offering their own refurbished electronics are:

• Apple, via its Special Deals section of its web site
• Dell, via its online Outlet store and dfsdirectsales.com, Dell's financing division
• Epson, via its online Clearance Center
• HP, via its online Business outlet
• Sony, via its online Outlet store

There's no shortage of products for these and other vendors to refurbish. Up to one in five consumer electronics items sold are returned, according to technology consulting firm Accenture, and a mere 5 percent or so of those returns are defective. More than two-thirds of electronics returned to retailers work fine.

Products that are returned generally get a good going-over, according to the Consumer Electronics Association. In a 2007 CEA poll, 89 percent of those who refurbish electronics tested a returned product, 84 percent cleaned it, 84 percent repaired it, and over half upgraded components or software.

Price is obviously the main reason consumers would opt for not-quite-new goods, and you can save, but not as much as it might appear at first glance. Recently, Amazon's warehousedeals.com featured a refurbished Samsung 46-inch LCD TV for $1,365.12—more than half off the list price, but about a third less than Amazon’s price for a brand-new version of the same TV. At Apple’s online store a new 8GB iPod touch media player sells for $299, while a refurb goes for $199—a 33 percent saving. Another reason to consider a refurb is to buy a specific model that’s no longer available.

Consumer Reports tests only new products that any consumer can buy at retail, so we can't report on the performance of refurbished electronics. We can offer a few shopping tips:

• Buy from a reputable retailer or a manufacturer with a vested interest in protecting a brand's good name. The Annual Car and Product Reliability Survey conducted by The Consumer Reports National Research Center collected almost 1 million reader responses last year. Online subscribers can find out which brands are reliable in desktop computers, laptops, LCD TVs, plasma TVs, and digital cameras. If you don't have a ConsumerReports.org subscription, scope out online discussion boards, such as Consumer Reports' free Electronics and Computers forum, for input from others.
• Check the return policy. Some merchants have liberal return policies on refurbs, but others are more restrictive. Target allows returns within 90 days of purchase, while Crutchfield and Amazon offer full-refund guarantees for refurbs returned within 30 days. SonyStyle.com has a 30-day return policy. The Apple Store allows returns within 14 days and deducts a 10 percent restocking fee for opened goods. But refurbished items from Epson.com’s Clearance Center are final sale, as are new items. We’d think twice about final sale items.
• Check the warranty. Some retailers and manufacturers offer a 90-day warranty on refurbs; others have one-year warranties. In some cases, there might be no warranty coverage at all unless you purchase an extended warranty.
• Don't rely on your credit card for extra protection. Many specifically exclude refurbished products.

You can find other money saving tips in our free online guide, "Smart moves for tight-times." If you've had a recent experience buying refurbished electronics—good or bad—let us know.

Comments

[Ralph]

Always be careful when purchasing returned items. I returned a very defective DVD/VCR player to my local Sears store. It would not play DVD's at all. Before I left the store with a replacement, the clerk had printed out and slapped a new reduced "open box" price ticket on it, without even opening the box. For all she knew, there could have been two bricks in the carton!

[Tim]

My only refurbished product has been an 8GB iPhone that I purchased in March from a local AT&T store in CT. The phone was $150 less than retail and looked brand new out of the box. It was a great deal at the time (I wish I had known the new iPhone 3G would sell for even less in July - couldn't find that crystal ball though). I also got the same one-year warrantee, though I don't think they'll honor it since I've dropped it a few times.

After this first experience, I'll be the first in line for a refurbished 3G model.

[Angela]

I have personally bought 3 refurbished ipods from the Apple website. I have also purchased new from Costco. I have found that they are exactly the same and since Apple has such high quality standards on everything I highly recommend anyone to feel confident buying refurbished from Apple.

[HRW]

I no longer buy refurbished items since I've been burned a few times. I once bought a scanner that was "not demeged just returned: and it did not work. I had a lot of trouble returning it. I had a similar experience when I bought some cordless phones last year. To me, refurbished is a nice way of saying "the item was returned because it was defective, but it's been fixed and it's as good as new." If you believe that I have a bridge in Brooklyn that I'd be happy to sell!

[Jason]

I have purchased laptops and desktop computers from Dell Outlet numerous times (both personal and for my company). To date, I've had no problems with any of the computers and saved substantial amounts of cash also! I highly recommend buying refurbished computers if they want to get the best value for their money.

Although there are some reputable websites offering refurbished products, I prefer to buy directly from the specific manufacturer. They have an interest in protecting their brand identity and can provide technical support on their products.

The length and terms of the warranty coverage is another important consideration. For instance, Dell Outlet purchases have the same exact warranty that the refurbished product had when it was new. By doing so, they are effectively saying "these products are as good as new".

The vast majority of refurbished computers are returns because the buyer changes his/her mind. At the Dell Outlet, they classify them as "Refurbished", "Previously Ordered New" (PVO) and "Scratch/Dent". The PVO systems were built but didn't get shipped for some reason OR they shipped but were returned unopened. Scratch/Dent items have minor cosmetic blemishes but in no way is the functionality or safety of the system diminished. I bought a Scratch/Dent desktop and the "blemish" was nothing more than a small shoe scuff mark on the bottom edge! I saved about $350 for that scuff! =)

[Steve Jacob]

I've noticed that sometimes a refurbish is sold and it may work under most conditions but then perhaps under temperature or shock it intermittently works. I believe what happens is that the product is tested but the failure doesn't show up.

This has happened to me with a Samsung MP3 player.

[Lisa]

I have buying refurbished goods for years and never once had a problem. The first thing I bought was a Kitchen Aid Mixer from Amazon, one of those big ones and it was over 100 bucks less then a new one. And it is still working 6 years later. I got a home stereo system years ago and still no problems, I find it is safe to buy household small appliances from well known manufacturers. You get big markdowns and you can find them at reputable stores online. One extra thing that was not mentioned a lot of companies offer the same warranty for their refurbished goods as they have with their new goods if they do the refurbishing. If a stores sells a product that was refurbished by the manufacturer most of the time that is the deal You do not even have to go to the companies website company does its own refurbishing.

[Daniel]

It varies wildly. Many refurbished items were returned and just cleaned and repackaged as the company didn't recognize that the problem was intermittent or not easily reproduced. In essence they blame the original customer for returning it without reason when in fact there was a reason. I'd trust companies with strong service, HP, Dell and avoid others.

[vinnie mirchandani]

contrarian POV - bought a refurb GPS for my tech averse wife - not sure she would use it so went the pre-owned route ...weak battery and maps were 2 years old...

I prefer to comparison shop for new and pay for the product with Amex which extends warranty by another year...I get the 33% difference back that way...

...good to have choice though ...and as I found in recent auto purchase, the overhang of used and end of lease cars helps keeps price of new ones much more reasonable

[Jake]

I bought a refurbished HP Desktop Computer from CompUSA. It is a great unit and I have been using it for 4 months now with no problems at all. I recommend the merchant and the manufacturer.

[H Ramelan]

My experience with refurbished goods is all-good. Mind you, I have been sure to go straight to the manufacturer's website (e.g. Kodak, Canon) and order there. With the Kodak 4 MP camera (CD43), they slapped a full year warrantee on it. With the Canon printer (IP4200) they placed a 90-day warrantee: but I am confident in Canon's printers from much past experience.

Typically one pays 50% the normal price and it is delivered rapidly.

But, Shhh...! Some things in life are best reported at low volume!

H Ramelan

[everett whitney]

"Refurbished"

Each of our two APPLE Computers - one now 3 years old, the other some 7 months - have been purchased via their
.. Refurbished / Outlet Store .. @ their Website.

One was a 41% reduction - the other 28% .. far more than sufficient to have also purchased their $169 APPLE Protection Plan for unlimited (3) years telephone Tech support, etc..

Highly recommend the purchasing of any APPLE products - inventories change daily, so look or telephone often, if you might not "see" what you're looking for the initial time. 1-800-MY-APPLE