When Should I Buy Refurbished Electronics?

Dear Lifehacker,
I saw your recommendation about buying refurbished Apple products and was wondering about other refurbished electronics or brands. Is it safe to buy a refurbished or open box TV, for example, or a refurbished computer from another source? I want to save money, obviously, but am afraid of getting burned.

Wary of Refurbs

Dear WoR,
We understand your trepidation. In some people's minds, refurbs are faulty products hastily pushed on to the next consumer (rejects!). But in many cases refurbished electronics are a great steal—"good as new" computers, TVs, stereos, mobile devices, etc. that cost much less and last at least as long as their brand-new counterparts. The key to buying refurbished electronics without having problems is knowing where to look and doing a bit of shopping detective work. Let's sort it all out.

What Does "Refurbished" Mean?

Although the word "refurbished" may conjure up not-so-reassuring images of retailers and manufacturers resurrecting defective products, lots of items fall under the "refurbished" umbrella. Sometimes a customer returns a product for a refund without even opening the box or using the item at all. There's nothing wrong with it, but the item can't be sold as new and has to be offered as a refurbished product—often at a deep discount (around 15 to 30 percent).

Other types of reasons products get labeled refurbished include:

  • Shipping or exterior damage: Minor scratches or dents to the product during shipment would force a retailer to return it to the manufacturer and put on the refurbish checkout lane.
  • Demo units: Demonstration units used at trade shows, retail stores, or product reviewers may be repackaged as refurbished items.
  • Opened box: Opened box can mean anything. Technically, there should be no issue and the item is "like new," but the box was simply opened.
  • Production Defects: If a defect in one part is found, manufacturers might repair the returned defective units and sell them or send them to retailers as refurbished units.

The issue is that in most cases, you don't know why a product has been labeled refurbished. If a customer just changed his or her mind and returned it, then the item is basically new and—sweet—you've saved yourself a lot of dough. But with things like "opened box" items, a returns department clerk could have just slapped that label on a product someone brought back because it wasn't working or had some major defect. And then you're screwed if you buy it.

So what should you do if you want to save money but are scared of refurbished products? The best bet is to shop from a reputable source and look for a generous warranty.

Where to Shop for Refurbished Electronics

Buy refurbished products directly from the manufacturer, so you can get the assurances that they've rigorously tested and rebuilt the devices themselves, or else buy from a reputable authorized dealer (e.g., Amazon, Newegg) that gets the refurbs from the manufacturer.

Apple's exemplary refurbished policy and system, as we mentioned previously, mean you should start there if you want the best deals on iPhones, iPads, iPods, and other iDevices. Apple devices get the same warranty, case, and battery as the new stuff but can cost a whole lot less.

You're not limited to Apple stuff, though. Dell Outlet offers excellent refurbish options—ones labeled as new (just canceled orders), certified refurbished (tested by Dell to be good as new), and scratch and dent (may have cosmetic blemishes that don't affect performance). You get the same warranty and support as if you bought new, similar to Apple's policy.

Other major tech manufacturers with clearance offerings include HP (which offers the same-as-new warranty and support) and Sony (warranty term is limited 90 days). Epson has a clearance section too, but items are final sale—no return policy, so think carefully before buying. Check the site for your favorite manufacturer to see if there's an outlet section.

Why You Need to Be Careful Buying Refurbished from Other Places

You can buy refurbished electronics from other places, but you have to be a bit more wary. I'm sad to say my personal experience buying refurbished gadgets has been a horror story, in two cases. At a discount appliance store chain, my father bought me an "open box" television for college (my dad's frugal, and he rocks). That thing could not hold a signal for its life. Naive as we were at the time, we were convinced by the salesman's explanation that the open box label just meant the customers had looked inside the package and returned it right away. When we had plugged it in at the store it worked, but of course it didn't work miles away at college, and the TV was bought "as is." Moral of the story: Avoid buying refurbished products "as is."

In the second case, years ago I bought a refurbished laptop online from what looked to be a reputable vendor. After a few months the system would just start turning off randomly throughout the day. It turned out to be a hardware problem (not the hard drive, which I replaced, but an issue with the connectors). Unfortunately, by the time I figured out the problem it was past the warranty coverage. Did I just get a dud, buy from the wrong place, or buy the wrong laptop? It really could have been any of those, which is part of the risk of buying refurbished. You can minimize the risk by buying from the right seller (direct from manufacturer or from trusted reseller) and a few more tips:

What to Look for When Buying Refurbished Electronics

  • "Factory certified" refurbished products. Not all refurbs are the same. Third-party refurbished products are available, but go for the factory-refurbished electronics, which come with the manufacturer warranty and have been carefully tested and brought to the original standards.
  • Warranty. Many retailers and manufacturers offer 90-day warrantees on refurbs. As mentioned above, for peace of mind you're better off looking for the full (e.g., one-year) warranty if you can find it. Unfortunately, credit cards are not likely to extend the warranty on refurbished products, but ask the retailer if you can get an extended warranty on the item—not that you should buy it, per se, but if the retailer does offer an extended warranty, it's a good sign of faith in that product.
  • Return policy. A liberal return policy means if you can catch any issues early (do some stress testing if possible) or are simply not happy with the product you're in luck. Target allows returns within 90 days of purchase, Amazon and Sony have refund refurbs within 30 days, and Apple has a 14-day refund policy. Make sure there's at least some return policy.
  • Accessories and Other Details. Check that all the chargers, cables, cords, manuals, software, drivers, and whatever else comes with your product are included in the package. Also check the complete description and specs list for your product and make sure it is the item you are expecting (a simple change in model numbers, for example, might mean you're looking at a different product).

Although there are some risks when it comes to buying refurbished electronics, there's no reason to be put off just by the label "reburbished." Buying refurbished can land you an incredible deal. Just buy it from the manufacturer or reputable dealer and with a long warranty to cover any problems—and enjoy your savings.

