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I have bought lots of refurbished electronic devices, including three e-readers, and have had no more problems with them than with the gadgets I buy new. As one poster said, sometimes you wind up with the odd cosmetic scuff or ding here or there, but more often I find that refurb stuff looks just like new - although there almost always is some modification of the nameplate or backplate, like an engraved "R" or "refurb" on it, to indicate its "not-new" status. I also find that sometimes, but not always, refurb gear has a shorter warranty.
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