Refurbished electronics look good, they sound good, and they can save you big money off the list price. David Pogue of the New York Times explains that refurbished does not mean used. Often, companies buy too many computers or televisions than they need and will return the balance to the manufacturer. Or a customer will buy a digital camera, open it, and then return it. Can’t be sold as new, but there’s nothing wrong with it. In these instances, stores will clean, test and check out the items then resell them at a discount but include the original warranty.

The savings differ, Pogue says. Some refurbished items will be discounted 25% or more. PCs are likely to fetch a 10-15% discount and many manufacturers have refurbished sections right on their web sites, so you don’t have to worry about a middleman.

You will save even more on smaller ticket items like iPods and cell phones, where the discounts are sometimes as much as 1/3 off. Some companies, such as camera-maker Canon, have “loyalty programs” where, if they determine a product is broken and out of warranty, they will upgrade you to a current model for half-off.

There are rules, of course, to buying refurbished. Pogue notes that you should be cautious of anything “reconditioned” or “recertified.” This just means a product was broken and a third-party company fixed it in its own shop. If you stick with manufacturers you won’t get taken for a ride.