In my world of insurance, "reconditioning" of machinery (and I would make an educated guess that it includes cars) means that all moving parts are checked for wear. Any that need to be are replaced, and the entire assembly is cleaned. It is not in "new" condition, but it is supposed to be in top condition compared to any similar machines made in the same time frame.
Then again, this could mean something completely different in the auto world, and I would never know, so don't take this as the gospel.
As far as new vs. used, if you are worried about depreciation, buy the newest used car you can find. My brother-in-law just bought an 04 Acura with 30,000 miles in great condition for under $20,000. There are deals out there, especially now.
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