Some form of risk comes with any purchase, whether it’s a new or refurbished item. Fortunately, refurbished appliances and electronics can be a great deal, if you do your research first. (See also: Why Refurbished Electronics Are Such a Great Deal)

Refurbished products are items that have been used, opened, or slightly damaged in some way. They have been repaired to return them to a “like-new” status. If you’re thinking about buying a refurbished item to save some cash, ask yourself the following questions first.

Is it a good deal?

Large appliances are designed to last a long time with little maintenance, so you can feel confident about buying a one- or two-year-old refurbished appliance. As a general rule, if a refurbished item includes a full warranty, working parts, and significant savings, it’s a good deal.

Another way to quickly determine whether a particular purchase is worth it is to subtract the amount of depreciation from the original cost of the appliance. For instance, if a new appliance is $500 and is expected to last 10 years it would have $50 depreciation per year. If you are purchasing the item after two years, you’d ideally want to find something that is under…