I got a used K1 for $200 off of Craigslist a couple weeks after the K2 came out.
Not much you need to know. Ask how old it is and how the battery life is doing. If it's less than a year since they bought it then you still have some warranty left. Battery is good to ask as some K1's have problems with the battery not holding a charge after a few months of heavy use. But not a deal breaker as you can get a new battery for $20 (or a bit less from other battery sites besides Amazon.
Registered or deregistered isn't a big deal, you can deregister it and re-register it right through the device via the whisper net.
Another thing to know is that books (including ones purchased from Amazon) left on the device by the previous owner when they sell it to you will remain there for you to read even after you register it in your name. Just don't delete them off the device as they cannot be redownloaded like books you buy under your own account.
I haven't regretted my decision at all. $200 was the upper limit I was willing to spend on an e-reader--being a fairly casual reader compared to most here. And the K2 didn't add any features I need. No interest in text to speech, the 16 shades of gray vs 4 doesn't matter for pure text (and I just use it for novels and non-fiction books) and the button placement etc. on the K1 doesn't bother me.
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