A large majority of my rods and reels were bought used. My bass setups primarily are on St. Croix Avids, and I've bought every one of those used, all for around half of new (and everyone I've gotten has been in reel good shape - even bought one from Poolie, once). Even bartered rods with someone in California (and it cost him less to ship his to me, than mine to him :x )
I've bought plenty of used reels, too. Everything from the round 5500 and 6500 Abu Garcia's (well, 5501 and 6501 because I use lefty reels) to Daiwa Vientos. In fact, I can only count a few reels that I bought new - a BPS extreme that was on sale at something like 45% markdown, a Revo STX that was marked down to 135 and free shipping, and a pflueger spinning reel that was a combo with a rod, and if I'm not mistaken, was marked down in the store at BPS.
I think I've paid full price for only two rods, and they were lesser priced ones to start with.