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If you’re looking to save money in the short run, buying used computers may be right for you. As with anything used, you need to exercise caution about what you’re getting into; but, in the case of used computers, you can get great deals on machines that perform well and can be reliable for several years.

When you search for used PCs or laptops, you often come up against the terms “refurbished,” “reconditioned” and “remanufactured.” According to Morris Rosenthal, author of several computer-related books, including Build Your Own PC, the differences are minimal. “They all apply to computers that have been sold and, after being returned, are being sold again,” he offers. “Some manufacturers may only do this if the product is being returned while in the warranty period or within 30 days of a sale. The term that’s missing here is “factory second,” which generally refers to a product that has failed a final quality control inspection at the factory, and is either reworked to pass inspection or sold with a superficial flaw. In all cases, the warranties on these products are generally shorter than the warranties on a new retail purchase of the same computer.”

The first consideration in exploring used equipment is, of course, price. But in judging price, you need to realistically assess what you’re getting. While you may be able to obtain what was once the top of the line years ago at an excellent price, you’re not getting what you ultimately need. Finding a bargain on a used computer has nothing to do with what the original owner paid for it—it has everything to do with how that price compares to a brand new equivalent or a superior model with a new warranty.

You also need to exercise caution regarding any software. You can’t assume that buying a used computer with the software installed means that you now own a legal license for that software. It may have been licensed directly to the previous owner with no right of transfer. In addition to software concerns, you want to stay away from used computers that are proprietary, meaning that repair parts can only be purchased from the original manufacturer or on the used parts market.

As far as warranties go, Rosenthal views them as being “irrelevant on a used computer. As long as it works when purchased, it should continue to work well beyond any warranty period. Extended warranties generally only make sense for government entities or certain businesses that are essentially working with other people’s money. Extended warranties are only sold because they are good business for the seller. Also, they usually don’t cover any type of accidental damage or user errors, which are the primary causes of failure in most machines.”

There are several providers, including office and computer-specific retailers and resellers and manufacturers, offering used computer equipment (e.g., Staples, CompUSA, Tiger Direct, PC Bargain Hunter, UsedLaptops.com, Dell, Gateway, Apple and many others). An alternative for cost-conscious computer consumers is to go with new, low-end models or close-out models.

“Don’t buy anything used with the intention of upgrading it,” adds Rosenthal. “If the laptop or PC doesn’t offer all the capabilities you need today, just say ‘no,’ or rather, ‘new.’”