Shoppers can save money on refurbished products, but are they worth buying?

Are refurbished products worth the money saved? Not all 'refurbished' items are broken, many are returned due to their size or being the wrong order and could still have a long life.

Are refurbished products worth buying? An Ontario company says it can be a great way for shoppers to save some money.

"We buy the products, and they come to our facility, and they undergo a strict process evaluating the unit, testing the product, and then we sell it as refurbished," said Raj Singhal with MTC Factory Outlet, a company in Bowmanville, Ont., selling refurbished items.

Many customers might think a refurbished product has been damaged or broken, Singhal says, but these items are typically returned because they're the wrong size or colour or simply were the wrong order.

While all products are labelled "refurbished," the company said many are retail returns and cancelled orders. Singhal said some appliances, televisions or video game consoles may have a slight cosmetic blemish, but most are in like-new condition.

"We have the original Sony PS4 at the low price of $249.99. You'll be hard-pressed to find it cheaper than that," said Singhal.

Singhal said all products sell 20 percent lower than current retail prices, adding that TVs come with a two-year warranty and appliances have a three-year warranty.

"You get price of mind, save money and the product is in stock when you want it. There is no waiting," said Singhal.

Consumer Reports also examined refurbished products and said they are a way to keep slightly older electronic devices and appliances out of landfills and save you money.

"We found that you can save between 15 per cent and 20 per cent an additional 10 per cent for each year since the product's been released versus buying new," said Lucas Gutterman with the U.S. PIRG Education Fund, a group trying to reduce e-waste.

There are also more safeguards in buying a refurbished item than purchasing a used one privately on classified websites.

According to Consumer Reports, when buying refurbished products, look for a certified reseller or buy directly from the manufacturer. Ensure the refurbished product includes a warranty and carefully check the return policy.

Different companies will have different rules when it comes to their refurbished products and you should also open the item as soon as you receive it to make sure it works and has all it's accessories.

MTC said it's been in business for 25 years and says consumers should know there are benefits to buying refurbished goods.

"We encourage people to investigate that and look into their options, especially in this economy where there are tough times people are going through," said Singhal.