I bought a factory reconditioned Milwaukee Sawzall that I've been completely satisfied with.  Was able to buy bigger than I actually needed and with every function available for cheaper than a much smaller, plainer version. 

It came looking brand new (not a scuff or scratch anywhere, except for the number engraved in the housing identifying it as reconditioned).  It was also in a brand new carrying case. 

Don't know, but I've heard it surmised by others that some of the "recondtioned" tools are simply customer returns that seen little or no use, but due to some legality can't be resold as new so they are cleaned, checked, and repackaged, then offered for sale as reconditioned.