Trash treasure

BY CATHERINE HARRIS

You usually cannot miss the signs. "Garage Sale," they scream, giving the street address and date. Streams of people can often be seen pulling up outside houses, balloons sometimes at the gate, welcoming people to inspect the unwanted leftovers of the owners' lives.

Overseas, "yard sales", "car boot sales" and other forms of second-hand selling are finding fresh life.

In New Zealand, the popular garage sale was hard hit several years ago when internet trading took off, but the physical lure of actually handling one's bargains retains a certain appeal.

"It's a bit of a sport to them," author Frank Newman says of the people signed up to his website who swap tips on living frugally.

Mr Newman is the husband of former ACT MP Muriel Newman and co-author with her of the Living off The Smell of An Oily Rag.

He praises garage sales as an easy way to get rid of unwanted stuff which can be used to pay off credit cards and debt. For the buyer, it's a way to save money on much-needed items.

The volume of goods going through Trade Me is "probably a fair reflection of garage sales themselves".

"I think what it really shows is the tougher times have really pushed people towards buying second-hand."

Financial columnist Diana Clement says garage sales are alive and well and have their place in an internet world.

"You just need to drive around on a Saturday morning to realise garage sales haven't died. There are fewer of them but still plenty of customers.

"There's no doubt you get top dollar from online auctions. But listing and selling items individually takes a lot of time and effort ... At a garage sale you can clear a lot of unwanted stuff in a hurry."

It's not just garage sales, but demand for second-hand goods generally, which is on the rise. Trade & Exchange's publisher Cabbage Tree Press says there's "definitely been an increase" in the number of garage sale advertisements, and Trade Me has also noticed a distinct upturn in listings for discretionary goods.

Trade Me's head of commercial Mike O'Donnell thinks the lack of salary increases this year has inspired many people to open their garages.

"Latest data shows over the last month we've grown most in baby gear, new clothing, computer furniture, golf clubs and furniture all of which have sell-through rates [successful sales] of over 40 per cent in any given week."

Even commercial operators are getting in on the second-hand game.

One buyer commented on the Newmans' website that he had just bought some stationery on Trade Me for $7 instead of the $125 it would have cost from his normal supplier. Online trading was also proving useful for getting rid of surplus stock.

"That tells me that business people now too are not just going through the normal channels, they're looking for cheap ways to buy their stuff," Mr Newman notes.

Dealers and family stores are also noticing the trend. While sales are static at St Vincent de Paul in Wellington, the Salvation Army's Johnsonville store has seen more foot traffic and a fall-off in gifts of furniture and bigger items.

"People are holding onto things a little bit longer now," says store manager Vicki Wilson.

She keeps an eye on the scene and believes more people will be hunting for second-hand whiteware and other goods as department stores tighten their credit conditions.

"I noticed this past Christmas, there weren't stores offering their take-it-home now and pay for it in 2010."

AT LOWER HUTT auction house Central Markets, Craig Griffiths says the recession has also hit them them hard when it comes to sourcing goods.

"The amount of stock we're buying in is less because people are not moving house or going overseas. A lot of people are not buying new furniture, so they're not selling second-hand, they're making do with what they've got."

He says would-be sellers should be aware that goods like china, furniture or jewellery might be worth much more than they realise. "You get a lot of people who overprice horrendously, and you also get a lot of people who undersell it because they don't know what it's worth.

"My advice to anyone who's having a garage sale is get an expert dealer or auctioneer through first."

Both buyers and sellers at garage sales are also urged to look at the laws regarding consumer rights.

While private sales are exempt from the Consumer Guarantees Act, certain items listed on the Consumer Affairs Ministry website are subject to safety standards no matter how they are sold.

Cots and babywalkers, carseats, bicycles, helmets and electrical goods are all items to be treated with care, particularly if they were subject to a recall. The ministry provides advice and some simple tests.

It's a cautionary lesson for buyers, says ministry senior adviser, Joanne Kearney: "The message is, if you're a consumer buying those kinds of goods, you need to know a bit more about what you're looking for then if you were buying new."

Frequent garage sellers should also be aware that they could be considered dealers.

Sellers who have sales on six or more different days or expect to receive $2000 or more from the sale of goods need to be licensed.

Mr Newman believes garage sales are just part of a wider movement towards thrift that includes a return to old-style cooking, crafts and vege gardening.

"To me, thrift is fundamental to the accumulation of wealth and financial independence, which I think is quite exciting."

- © Fairfax NZ News