Those with Cash Should Soon Be Able to Pick Up Some Real Bargains

MSN Money thinks that tough financial times are ahead. And what do they think people will do to cope with this impending doom hovering over their finances? Their thoughts:

Enter the "yard-sale economy." That's the economy where once-new goods go back on the market to be sold as used (as in clothing at a consignment store) or "pre-owned" (as in the purchase of an aging Ferrari or vintage Patek). Lots of people are going to take stuff out of their closets and garages and try to sell it.

Here's the opposite side of the coin: those of us who aren't in debt and have cash can pick up real bargains. Personally, I like to go to the "wealthy" neighborhoods. You know, those developments that have 5,000 square-foot homes with three expensive cars parked in the 4-stall garage. They have the BEST garage sales -- like-new name-brand clothes for pennies on the dollar, hardly used sporting equipment for nearly nothing and so on. I'm not so sure that they're selling because they are desperate -- I think it's that they're just tired of that shirt they wore one time.

Anyway, if the economy does turn south and more people become yard-sale sellers, it is going to be a real bargain bonanza for those of us with good cash flow.

Comments

[Lily]

I think you're right that the upper class isn't necessarily selling things out of financial need. Both my previous and current jobs are with Wall Street firms, and both companies have internal classified ads. It's always hilarious to see the BMWs, townhouses, and boats that get posted after a bonus is distributed. Those who have just received 6- or 7-figure bonuses are ready to upgrade!

[TreyD]

Lily I know what you mean, sort of. I don't work in one of those firms but I notice around bonus time seeing a huge surge of ads on Craigslist for high-end items like cars on sale. Bankers just trading up. You can probably get some good deals given how big those bonuses they get are and how meaningless an extra $10,000 or so on the sale of their car means to them.

[MonkeyMonk]

Just remember to keep a frugal midset at these fire sales. A piece of exercise equipment that sits unused in a closet is a waste of money regardless of whether it cost $100 or $500.

[buhlers]

That is what I love about Craigslist. Works the same as the yard sale, real bargains can be found from time to time. Even better I do not have to drive around looking on Friday or Saturday mornings.

[Lord]

You might even come up with a buy on a home. Just make sure the discount is sufficient to cover any anticipated decline in value.

[kitty]

Yes, expensive places have the best sales. I live in an expensive area, not far from Bedford, NY, where there are some seriously rich estates (Trump has a place there, some movie/TV stars as well), Chappaqua where Clintons bought a place isn't far either. When I moved, I went to a number of the estate sales around the area to get some nick nacks to decorate my place. Got a few nice things for very little.

A friend of mine went to an estate sale once where the owner died and the beneficiaries were selling everything for next-to-nothing. The owner was a compulsive shopper with a special interest in designer clothes. The place had zillions of designer dresses, skirts, blouses in sizes 6-10 (maybe she gained and lost weight?), many still with tags, all selling for $5-10 a piece. Although the lady was old, she liked somewhat "younger" style of clothing, my friend even found some things for her then-teenage daughters. The hired salespeople were saying that it looked like the old lady was just buying things and hanging them in her closets. I was soooo upset I missed it, but my friend said there was no way to know from the ad what to expect.

[Meg]

Not to mention bargain prices on homes, stocks, and other investments!!