Monday, May 28, 2012

Money & Business

Driven By a Little Old Nerd on Sundays

Buying used computers can make sense

By Leonard Wiener
Posted 11/16/97

Ever hear of Synera computers? Probably one of those off-brand, mail-order places that advertise in the back pages of computer magazines, right? Hardly. Synera is a line of PCs made by Packard Bell, one of the nation's biggest PC makers, whose label is seen in almost every major computer store. But there's a big distinction: Synera models have been assembled from parts salvaged from returned Packard Bells and are sold by mail through the company's PC Factory Outlet. One recent offering was a modestly powered Pentium 133 with 16 megabytes of memory, a 1.6-gigabyte hard drive, an eight-speed CD-ROM, a 33.6-kbps modem, and a suite of software. Its price was a very affordable $699, though with a slim 90-day warranty and no monitor.

Buying secondhand equipment saves cash and eases a bit the rapid loss in value that can occur within months of buying a PC. Rather than take your chances with as-is used equipment sold through classified ads or at swap meets, buying computers and peripherals that have been refurbished--often by the original manufacturer--is the safer bet. Buying refurbished often means getting models that are still being sold new or have only recently been discontinued. "It's gone through the factory twice," a spokeswoman for Jem Computers, a dealer in refurbished items, enthuses, perhaps a bit too much.

One disadvantage is that the discounts on refurbished items may be modest--perhaps 10 to 20 percent on currently produced items and somewhat more on equipment no longer being made. Normally, used computer equipment might sell at 50 to 60 percent of original cost on newer items, perhaps 20 to 30 percent on items two years old.

When buying older used equipment, you can get a feel for its value by checking the Orion Blue Book of values for nonrefurbished used computers and peripherals, published by Orion Research in Scottsdale, Ariz. It's like the guides for used cars but not as widely available. And at $104 per quarterly volume, the book isn't practical for most consumers. A number of libraries have it or may be able to get a copy for you. Dealers also often have the book, but they may or may not be willing to let you take a peek.

Unlike used cars, what dates PCs isn't generally wear and tear but technical advances. So be careful about getting an outdated machine. If your needs are limited, an older PC with less processing power, limited multimedia capabilities, and less World Wide Web browsing speed may suffice. But most home users will be best served by buying something less than 18 months out of date. Unless you're PC savvy and fully recognize the limits of what you're buying, there's a strong chance you'll end up disappointed with older models. Many popular games and the latest programs require speedy Pentium-class PCs, and you'll end up regretting the absence of the latest video cards, big hard-drive space, and other upgrades that newer models have.

Almost all the major manufacturers sell refurbished machines and sometimes never-used discontinued models. Compaq's 20,000-square-foot Compaq Works outlet in Houston occupies part of an old warehouse club store and serves a devoted local following and out-of-towners by mail. People itching for a Compaq Pentium 133-MHz computer with a 14-inch monitor could recently get one for $798, about a third off its new price six months ago. Mail-order giant Dell Computer runs an outlet store in Austin, Texas, called Dell Factory Outlet and does a steady mail-order business. It primarily sells current models that have been returned by customers under Dell's 30-day return policy. The units are fixed up as necessary and carry a three-year warranty, the same as new units. Recently a top-end Pentium II 300 with a new 17-inch monitor was selling for $2,337, a $251 discount.

advertisement

advertisement

Special Reports

Paying for College

Paying for College

Colleges break links with lenders but now give less guidance to students on where to look.

NEWSLETTER

Sign up today for the latest headlines from U.S. News and World Report delivered to you free.

RSS FEEDS

Personalize your U.S. News with our feeds of blogs and breaking news headlines.

USNews MOBILE

U.S. News daily briefings are also available on your mobile device.

Use of this Web site constitutes acceptance of our Terms and Conditions of Use and Privacy Policy.