Good deals in a bad economy

Everywhere you turn, there's bad news to be had about the economy. But, if you have some cash to spare, today's environment offers some great deals and opportunities. Here's the lowdown:

1) Know where the bargains are. There are opportunities everywhere - Free shipping is a big one according to Tod Marks of Consumer Reports. Not only are retailers offering to ship you products for free, but they're also offering free shipping on returns.

Furniture is another big ticket item where you have a lot more leverage as a consumer. These are the big-ticket items that tend to languish on show room floors. As a result, dealers are offering tremendous deals. Now, it may take some haggling, says Marks. But often these retailers mark up the price so much in the first place because they assume the customer is going to haggle anyway.

You will also find good deals on clothing, if you shop early. This is a reversal of the past when the best clothing deals were to be had late in the season. But in this kind of lagging environment, retailers want to avoid having left over inventory - so you’ll probably find that there are a lot of sales and discounts this season.

2) Get the inside scoop. Unlike clothing, if you're in the market for a big consumer electronic purchase, you're better off waiting until a bit closer to the holiday season, says Marks. Slower holiday sales of things like LCD or flat screen TVs could lead to a higher supply and that could lead to slashed prices. Another tip here: shop in the warehouses - like Costco or Sam's Club. Although you may not have the same selection as at the manufacturer's store, generally you'll find better prices - especially if you go online.

3) Best time to make big purchases, like cars? If you have good credit and are able to secure a car loan, the world is your oyster if you’re looking for a car. Car sales have been tanking - September and October have been especially brutal. So now is a great time to buy because dealers are really getting desperate.

Plus, new 2009 models are soon to hit the salesroom floor - so those old 2008 model year cars are carrying heavy discounts to make room, says Phil Reed of Edmunds.com. The biggest discounts are on 2008 domestic cars like Chrysler, Ford and GM. Of course, the biggest incentives are on SUVs and trucks.

If you’re wondering if you should go ahead and buy a new car now, or wait a few months, Edmunds.com has a new tool on their website that can help you figure out if the model you're interested will likely see its price drop, or increase in the future -– it's called the predicted true market value. Click on Edmunds.com and go to true market value and go to predicted TMV.

Posted by: Gerri Willis, Personal Finance Editor
Filed under: Finance • Living • Willis