Feature: Are Refurbished Notebooks Worth the Money?

Despite price drops, portable computers still cost more than their desktop counterparts. And in this battered economy, it's even more important to stretch your dollars. So the temptation to save bucks by buying a refurbished notebook--one that was returned to the manufacturer but reconditioned and retested before being sold again--has never been greater.

But the question is: Are refurbished notebooks a good deal or a bum steer? Based on my experiences as a refurbished-notebook owner, and my recent price comparisons of refurb and new equipment, the answer is ... it depends. (For tips on buying refurbished PDAs and mobile phones, see the Handhelds and Wireless sections below.)

Shopping for an Old New Notebook

Two years ago, when I was ready to buy a new notebook, I surprised myself by buying an "old" one instead. I was about to purchase a Dell Inspiron 3800, when--in a rare fit of frugality--I investigated Dell's refurbished notebooks. I discovered an Inspiron 3700, recently discontinued but nearly identical to the 3800 I wanted.

The Inspiron 3700 was about $500 less than the 3800, so I popped it into the online shopping cart, proud of my sensible purchase. The notebook worked fine, but it developed a few quirks not long after the return period ended, such as a tendency to shut down after disuse. None of the notebook's eccentricities were serious, just occasionally irritating.

Fast forward to March 2002. The Inspiron 3700 and its 128MB of RAM were no longer meeting my needs, so I hunted for a replacement. This time around, I began by comparing the refurbished notebooks to the new models at IBM, Gateway, and Dell's online stores. Here's what I found:

IBM. On a recent visit, the selection of refurb ThinkPads was slim and unappealing--five of the six models were Pentium II machines. At $999, the sole Pentium III notebook was $300 less than its closest counterpart among new ThinkPads. But given that IBM's return period for refurbished computers is only seven days (vs. 30 days for new computers) and limited warranties are only three months (vs. one to three years), the $300 savings hardly seemed worth it.

Gateway. Here the pickings were slightly better: eight "remanufactured" notebooks, ranging from $599 to $1599. I configured a brand-new Gateway Solo 9550ls with specs identical to a $1599 refurb Gateway Solo 9550--and was startled to find that the new system cost only $50 more. Gateway-remanufactured Solo 9550s come with a standard one-year warranty, according to a phone-order salesperson, whereas new Solo 9550s come with a three-year warranty; the 15-day return period is the same for new and refurb. As with IBM's site, I didn't see a compelling reason to buy a remanufactured Gateway notebook.

Dell. On the same day I visited the IBM and Gateway sites, Dell's Factory Outlet offered 25 reconditioned Inspiron and 95 Latitude notebooks for sale. And unlike IBM and Gateway, you can easily sort available models by price range, processor speed, and other criteria. I found some good deals, too. A refurbished Inspiron 4100 with a 1.2-GHz Pentium III processor, a 40GB hard drive, 512MB of RAM (on two DIMMs), an 8X CD-RW drive, a 14-inch UXGA display, and a one-year warranty sold for $2003. By comparison, the same notebook (and warranty) went for $2646 new. Based on my experiences, Dell is the best place to shop for refurbished notebooks, hands down.

Many Happy Returns

Price comparisons aside, there are other factors to consider when shopping for refurbished computers. For starters, you're options are limited to what's available: You can't pick and chose components the way you can when ordering some new notebooks. And it's unlikely that you'll know why the product was returned. Could be the notebook constantly gave its hapless owner the blue screen of death; could be the entire box was sent back unopened because the customer had a change of heart. For more about the pros and cons of refurbished computers, see "Consumer Watch: Refurbished PCs--Sweet Deals or Lemons?"

But all told, given today's economy, you should at least investigate refurbished notebooks before you buy, particularly if you're a Dell loyalist. What have you got to lose?

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