CONSUMERS : Saving Money With Used PCs
Gayle Wayne, who uses four new computers in her Reseda secretarial service, wanted more byte for her buck last week when she went shopping for a used machine at the Used Computer Store in Sylmar.
She eschewed a new model for one reason: price. Dealers say buyers commonly save 30% or more on used PCs, and consumers are searching stores, auctions, swap meets or brokers for big bargains.
Wayne had her eye on a LCD Portable 286 PC (with a 20-megabyte hard drive) for $600. Her Van Nuys computer consultant, Tad Wakeman, had pronounced the machine sound before she arrived.
When Wayne sat down, however, she squinted at the screen. “Is this adjustable?” she asked. She continued reading as salesmen fine-tuned the screen.
“I’m still considering it,” she said later. “I have to talk to my computer consultant. Because when you buy something, you do not want to have to replace it.”
Wayne is among thousands of Angelenos bypassing traditional computer outlets in their hunt for bargains. Experts agree there is money to be saved, but warn the buyer to beware.
Ray C. Davis, executive director of the Houston-based National Assn. of Computer Dealers, said that warranties aren’t always available on used machines and that some off-brands are difficult to repair. Buyers with limited computer knowledge may be unable to spot problems, he said.
Gray market mail-order houses may purchase name-brand equipment from authorized dealers and sell it inexpensively, but manufacturers may refuse to uphold warranties on the equipment.
The store that Wayne patronized at Roxford Street and San Fernando Road primarily sells to drop-in customers. It usually stocks about 50 used PCs priced from $300 to $2,500 and 60 printers for $75 to $1,000, along with an extensive software selection. Sarina LaBate, who runs the store with her sons Darryl, Joe and Todd, said that the hottest items are AT 286 computers and 24-pin printers.
Unlike the Used Computer Store, most used-computer vendors selling to individuals have warehouses of equipment and specialize in volume sales to mid-size companies. They include Group 4 Electronics in Chatsworth, Century Computer Marketing in Marina del Rey, Dana Marketing in Long Beach and ABSCO Systems in Chino.
Those who don’t find their PCs in stores or warehouses may have better luck at computer auctions.
The 50-year-old Ross-Dove auction company south of San Francisco holds five to 10 sales annually in Southern California, moving used equipment for such computer heavyweights as Businessland, Computerland and Sun Microsystems. The sales are advertised in classified sections of newspapers.
No sales are scheduled, but Ross-Dove conducted a satellite television auction June 21 for Sun Microsystems. Potential buyers inspected equipment on June 20 at the Los Angeles Westin Bonaventure Hotel and in Chicago, Boston and Atlanta. The next day a satellite linked buyers to the auction at a San Jose hotel. Many liked what they saw. Auctioneers moved 1,100 units.
“It may be hard to get what you want (at an auction),” said Don Cowan, vice president of sales for Ross-Dove. “You will save money, but you have to weigh that carefully against the service, warranty and parts you will get from computer stores. That could justify paying a higher price. When we sell, you get what you buy on the spot.”
Consumers who prefer to do business by phone can turn to computer brokers. Alex Randall, president of the Boston Computer Exchange in Massachusetts, called his organization “the nation’s oldest broker of used computers. We’re kind of a dating service for used-computer traders,” he said. “We match buyers and sellers.”
“People call us literally from all over the world and say, ‘I don’t need my Compaq 33 megahertz 386 computer anymore. I’d like to sell it,’ ” Randall said. “We take a listing, like a real estate broker. We publish that listing in print and on line with such organizations as Compuserv. A buyer contacts us, saying, ‘I’m looking for a Compaq 33 megahertz,’ and we say great, we’ve got a guy who’s selling one.”
For a $120 annual subscription the Computer Exchange also provides a weekly index of the high, low and closing prices of the 30 most popular used computers. Macintoshes and the IBM PS/2 Model 55SX are currently de rigueur , Randall said.
Randall said the exchange has licensed offices in most major cities worldwide, including Moscow and Leningrad. Another office operates in Novosibirsk, in Siberia, a scientific city similar to Los Alamos, N.M., and a fertile ground for used U.S. computers. The Los Angeles office closed recently, and the Computer Exchange is seeking a replacement. Shoppers seeking a local broker can call the Exchange.
Randall cautioned that the nation’s 250 used-computer brokers generally provide no warranty. He also warned that equipment is designed with a 10-year life span and urged consumers to purchase recently built models. “If you buy something six months old, you can get 9 1/2 years of utility and save 30% to 40%,” he said.
Shoppers willing to accept bargains without warranties can also try swap meets.
The Computer Market Place outside San Jose runs about 35 computer trade shows annually in Southern California, including events scheduled Aug. 18 at the Orange County Fairgrounds in Costa Mesa and Aug. 25 at the Los Angeles County Fairgrounds in Pomona.
Owners sell used computers at a consignment table, paying 10% of the sale price to the sponsors of the show, which are advertised in local newspapers and on local radio stations.
The TRW Amateur Radio Club also holds a monthly swap meet. Club president Jeff Shields said that the focus is on ham radio equipment, but because radio operators use computers to design antennae or circuits, about 25% of the merchandise is computers and peripherals.
The swap meet, from 8 to 11 a.m. on the last Saturday of every month, attracts up to 3,000 customers to a TRW parking lot at Marine Avenue and Aviation Boulevard in Redondo Beach, Shields said.
Davis of the National Assn. of Computer Dealers suggests that all buyers learn the prices of new machines so they will not be overcharged for used ones.
A buyer who has checked prices, he said, “needs hands-on time with the machine.” Used-computer stores provide time, Davis said, and good brokers hold purchase money in escrow until the buyer checks the equipment.
“A lot of people take the computer to a service center to see if it is all right,” he said. “The best thing you can do if you are not knowledgeable is to bring someone with you that knows about computers. Don’t ever buy a computer blind, ever.”
Davis said consumers should test familiar software programs on a potential computer purchase, then look at the hardware itself.
“You need to spend at least an hour on the computer,” he said. “Computers can develop heat-related problems. In an hour, those problems would expose themselves. . . . Be certain that there is some air movement within the box or the case to cool the system.
“You want to make sure the density of the screen is consistent. Discoloration in the corners or sides would indicate that the machine had been dropped. Also make sure that the image is bright and constant and doesn’t waver.”
Davis also said every key on the keyboard should require the same pressure to be reflected on the screen.
State law provides other protections for used-computer store customers. Under the law, the LaBates must run the serial number of each machine through police department files and hold computers for 35 days to ensure that they have not been reported stolen.
If the title is clear, Joe and Todd LaBate clean the machines and inspect them, providing a 30-day guarantee for parts and labor.
The store’s safeguards satisfied Bob Dunn of Sylmar. Dunn spent $3,000 on a PC for his home 18 months ago and bought another for his pet shop a year later. He compared prices of new machines and saved $1,500.
“They’re running fine,” he said. “I had a problem at the beginning but that was mostly the way I was operating it. I took it down there and they squared me away.”
