Refurbished Apple gear from Apple is as good as new, and carries a full 1 year warranty the same as new machines. They are widely regarded as a bulletproof way of getting a machine at discount, as long as you can tolerate them not coming in as fancy packaging as new.
Whether to get Applecare or not should be the same decision as with a brand new machine; they don't sell dodgy stuff via refurb.
The refurb stuff I've purchased before has looked, cosmetically, brand new, and has functioned flawlessly.
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-Scott
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