Everything Old Is New Again

Considering this model regularly retails for $69, it sounds like a good deal, right?

It is, but there's a catch: That great price is for a refurbished item. (It's all but impossible to get a decent discount on a new model. For more, see our recent column.)

Refurbs are products that have been returned to the manufacturer for various reasons, then repaired and put back on the market. Savings can be spectacular — 50% off or more — but there's also some risk involved when buying a refurb. Here's what to consider.

Second Time Around
Forget about that "like new" microwave on Craigslist or the "gently used" Palm Pilot on eBay. Refurbs (also called reconditioned, remanufactured or factory-serviced) aren't your standard used items.

There are any number of reasons an item may be refurbished, says Edgar Dworsky, founder of Consumer World, a consumer resource web site. An item might've been returned by a customer or sustained damage during shipping. Maybe a scratch or production defect landed the item back in a company's hands. Regardless, manufacturers test and repair each item. Those products that are up to snuff are then returned to the market with a discount and a "refurbished" label.

You'll find refurbished items at many major retailers, including Amazon.com, Best Buy, Dell and of course, Overstock.com. The company spells out if a product has been refurbished, and may even put such items in a special "outlet" or "refurbished" section of its site. Other companies, like Refurb Depot, specialize solely in these kinds of products.

But not all items lumped into the refurbished category actually are, warns Dworsky. You'll often find floor models, as well as so-called open box units, which are products a customer opened but never used. These items haven't been sent back to the manufacturer for repair and really are "as is," so keep that in mind as you shop.

Buying Secondhand
Finding a good refurb deal can be tricky business. If you're considering this route, it's even more important to read the fine print. Keep these factors in mind: